Core Viewpoint - The article discusses China's strategic dominance in critical industries such as rare earths, lithium-ion batteries, semiconductors, and pharmaceuticals, emphasizing its ability to leverage this position against the U.S. amid ongoing geopolitical tensions [1][14]. Group 1: Rare Earths and Supply Chain Control - China has established a leading position in the supply chain for rare earths, which are crucial for both military and civilian applications, and has implemented export controls as a common international practice [1]. - The U.S. media has suggested that China's control over rare earths has forced negotiations with former President Trump, highlighting the perceived "weaponization" of supply chains [1][14]. Group 2: Lithium-Ion Batteries - China produces 79% of the world's battery cathode materials and 92% of anode materials, controlling 63% of the market for refined lithium products, 80% of refined cobalt, and 98% of refined graphite [2]. - The two largest battery manufacturers globally are Chinese companies, CATL and BYD, which dominate the electric vehicle and energy storage markets [5]. Group 3: Semiconductor Industry - China accounts for approximately one-third of the global capacity for mature process semiconductors, which are essential for automotive, consumer electronics, and defense industries [5]. - The country has invested billions to enhance its semiconductor manufacturing capabilities, aiming for self-sufficiency [5]. Group 4: Pharmaceutical Sector - A significant portion of active pharmaceutical ingredients (APIs) used in U.S. medications is sourced from China, including key ingredients for widely used drugs like acetaminophen and ibuprofen [12]. - China has prioritized the development of its pharmaceutical and medical device industries, aiming to innovate and reduce reliance on foreign imports [12][14]. Group 5: Strategic Self-Sufficiency - Over the past two decades, China has systematically pursued economic self-sufficiency, reducing dependence on Western imports and establishing a robust industrial base [14][16]. - The Chinese government continues to strengthen its industrial capabilities, emphasizing the importance of a resilient supply chain and a modernized manufacturing system [14].

Core Viewpoint - In the first half of 2025, JianKai Technology Co., Ltd. reported a slight increase in revenue but a significant decline in net profit, indicating challenges in domestic sales while experiencing growth in international orders [1][2]. Financial Performance - The company achieved operating revenue of 130 million yuan, a year-on-year increase of 0.89% [1]. - Product sales revenue was 126 million yuan, a decrease of 0.26% year-on-year, while technical service revenue reached 3.78 million yuan, an increase of 83.77% [1]. - Domestic sales revenue fell to 20.48 million yuan, down 58.35% year-on-year, primarily due to a major domestic client reducing orders [1]. - International sales revenue increased to 105 million yuan, a growth of 36.96% year-on-year, driven by a rise in orders from overseas pharmaceutical clients [1]. - The net profit attributable to shareholders was 22.05 million yuan, a decline of 21.08% year-on-year, and the net cash flow from operating activities decreased by 88.22% [1]. Research and Development - Total R&D investment amounted to 42.60 million yuan, an increase of 52.44% year-on-year, with R&D expenses accounting for 32.84% of operating revenue, up 11.11 percentage points [2]. - The increase in R&D investment is attributed to the ongoing Phase III clinical trial for the PEG-Irinotecan project for small cell lung cancer, which began patient enrollment in September 2024 [2]. Operational Strategy - Despite a challenging global political and economic landscape and intensified competition in the domestic pharmaceutical raw materials sector, the company maintained a stable operational development [2]. - The company leveraged its unique advantages in PEG modification technology across multiple fields and optimized its production quality management system [2]. - JianKai Technology successfully accumulated a substantial reserve of overseas pharmaceutical orders, laying a solid foundation for future business development [2].