Core Viewpoint - Wafangdian Bearing Co., Ltd. (referred to as "Wafangdian B") is expected to report a significant loss in the first half of the year, with net profit projected between -19 million to -25 million yuan, indicating a year-on-year reduction in losses by 45.69% to 58.73% [1] Group 1: Financial Performance - The company anticipates a net profit excluding non-recurring losses between -28 million to -38 million yuan, reflecting a year-on-year reduction in losses by 33.69% to 51.14% [1] - Wafangdian B has faced substantial operational pressure due to rising R&D expenses, leading to continued losses [1] Group 2: Impact of Sanctions - The company is experiencing increased survival pressure due to sanctions, which have resulted in financing difficulties and reduced procurement from domestic and international clients [1] - Wafangdian B was placed on the "SDN list" by the U.S. Treasury Department earlier this year, which may hinder normal trade activities [2] Group 3: Competitive Position - Wafangdian B is recognized as having the largest bearing technology and product R&D and manufacturing base in China, with strong competitive capabilities [1] - The company has a long history, dating back to 1938, and has established significant advantages in technology R&D, product manufacturing, marketing, and customer service [2] - The majority of Wafangdian B's sales occur domestically, which may help mitigate the impact of being on the SDN list [2] Group 4: Strategic Measures - The company is implementing various effective measures to alleviate operational and financial pressures, including expanding new customer bases, improving product sales margins, and seeking support for working capital turnover [2]