Financial Performance - In the first half of 2025, the company achieved total revenue of 593.03 million CNY, a year-on-year increase of 15.43% [1] - The net profit attributable to shareholders was 54.98 million CNY, up 11.82% compared to the previous year [1] - As of June 30, 2025, total assets reached 2.58 billion CNY, reflecting a growth of 3.10% [2] - Shareholder equity increased by 20.29% to 1.46 billion CNY [2] Business Segments Security Gloves - Revenue from functional safety gloves was 566.04 million CNY, representing a 13.55% increase year-on-year [2] - The company’s security gloves business faced challenges due to U.S. tariffs but showed resilience with improved operational conditions as trade negotiations progressed [2][3] - The Vietnam factory's annual production capacity for functional safety gloves is projected at 16 million pairs, with significant progress in production line setup [3][4] New Materials - The subsidiary, Hengshang Materials, reported sales of 289.71 tons of ultra-high molecular weight polyethylene fibers, achieving revenue of 20.56 million CNY, a year-on-year increase of 90.30% [2] - The gross margin for ultra-high molecular weight polyethylene fibers decreased by 6.23% due to competitive pricing and strategic pricing adjustments to capture market share [9] Market Strategy - The company is diversifying its market strategy by increasing investments in emerging markets such as the EU, South America, Africa, and Australia, while also strengthening its domestic market presence [3] - The overseas sales accounted for 88.9% of total revenue, with North America contributing 37.85% (31.24% from the U.S.) and Europe 32.12% [6][7] Operational Efficiency - The company implemented strict cost control measures, resulting in a reduction of both sales and management expenses in the first half of 2025 [9] - The effective tax rate slightly decreased due to profits from subsidiaries with prior year losses, which do not incur corporate income tax [10] Future Outlook - The company anticipates gradual capacity release from the Vietnam factory, with a focus on aligning production with market demand [4][8] - Plans for the biodegradable polyester rubber project are underway, with the first phase expected to contribute to market competitiveness [12][13]