Core Viewpoint - Oriental Precision's strong performance in the first half of 2025 is primarily driven by its waterborne power equipment segment, particularly the historical highs achieved by its subsidiary, Baisheng Power [1][2][3]. Group 1: Financial Performance - In the first half of 2025, Oriental Precision reported revenue of 2.159 billion yuan, a slight decrease of 0.1% year-on-year [1][3]. - The net profit attributable to shareholders reached 397 million yuan, marking a significant increase of 142.52% year-on-year [1][3]. - The net profit after deducting non-recurring items was 257 million yuan, reflecting a year-on-year growth of 12.12% [3]. Group 2: Business Segments - The company operates two main business segments: intelligent packaging equipment and waterborne power equipment, both contributing to its revenue growth [2][3]. - The intelligent packaging equipment segment achieved record revenue in 2024, with the corrugated paper packaging equipment maintaining the top market share in China and ranking among the top two globally [2]. - Baisheng Power, a subsidiary, reported revenue of 485 million yuan in the first half of 2025, a year-on-year increase of approximately 28%, and net profit of 58 million yuan, up 13% [2][3]. Group 3: Global Expansion and Innovation - Oriental Precision is accelerating global capacity upgrades and investing in new production capabilities to enhance its core competitiveness [1][4]. - The company has established a global asset layout with R&D and production bases in Asia, Europe, the United States, and Mexico, serving over 100 countries and regions [4]. - The company has increased its R&D investment, resulting in 491 authorized patents and 84 software copyrights by the end of 2024, reflecting a commitment to technological innovation [4]. Group 4: Strategic Investments - While strengthening its core business, Oriental Precision adheres to a "1+N" development strategy and a path of "industry-based + capital-driven" growth [5]. - The company is actively investing in areas such as embodied intelligence, robotics, and commercial aerospace, forming a comprehensive investment layout across the entire industry chain [5].

Core Viewpoint - The company reported a stable growth in operating performance for the first half of 2025, with a slight decrease in overall revenue but a significant increase in net profit and net profit excluding non-recurring items [5][6]. Financial Performance - For the first half of 2025, the company achieved total operating revenue of approximately 2.159 billion yuan, a year-on-year decrease of 0.1% [5]. - The net profit attributable to shareholders was approximately 397 million yuan, representing a year-on-year increase of 142.52% [5]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was approximately 256 million yuan, showing a year-on-year growth of 12.12% [5]. Business Segment Overview Waterborne Power Equipment Segment - The subsidiary, Baisheng Power, achieved operating revenue of 485 million yuan, a year-on-year increase of approximately 28%, and a net profit of 58 million yuan, up 13% [6]. - Baisheng Power became the first company in China to mass-produce a 300-horsepower gasoline outboard motor, marking a significant milestone in the industry [6][7]. - The company launched its first intelligent top-flow machine product, which is the first foldable structure top-flow machine in China, entering mass production [7][10]. - Operational efficiency improved significantly with the implementation of the U9 EPR system, leading to a notable decrease in inventory turnover days and a substantial increase in operating cash flow [8]. Intelligent Packaging Equipment Segment - The Fosber Group maintained a stable order intake in the first half of 2025, with a focus on expanding into emerging markets like Latin America and Africa [11][12]. - Fosber Asia achieved record-high performance in the domestic market, with significant growth in new orders and revenue [13]. - The new factory of Fosber Asia, with an annual production capacity of 40 lines, was successfully launched, supporting the growth of its business [13]. Digital Printing Equipment Segment - The subsidiary, Wande Digital, launched an upgraded "digital printing all-in-one machine," which gained popularity in the domestic market [15]. External Business Development - The company is focusing on external growth through strategic investments, particularly in the fields of "artificial intelligence + robotics" and "controlled nuclear fusion key structural materials + nuclear power equipment" [16][18]. - The company increased its stake in Guizhou Aerospace New Power Technology Co., Ltd. to 19.89%, recognizing its strong technological capabilities in nuclear power components [21][23]. - The company is also investing in sectors with significant technological barriers and future growth potential, such as aerospace and new materials, to explore new directions for development [24].

Core Insights - The company reported a slight decrease in overall revenue for the first half of 2025, with total revenue approximately 2.16 billion yuan, a year-on-year decrease of 0.1% [1][2] - Net profit attributable to shareholders saw a significant increase of 142.52%, reaching approximately 397 million yuan [1][2] - The net profit after excluding non-recurring gains and losses increased by 12.12%, amounting to about 257 million yuan [1][2] Financial Performance - Total revenue for the reporting period was 2,158,956,857.88 yuan, compared to 2,161,188,907.40 yuan in the same period last year [2] - Net profit attributable to shareholders was 397,440,989.86 yuan, up from 163,880,472.14 yuan year-on-year [2] - Net profit after excluding non-recurring gains and losses was 256,886,325.80 yuan, compared to 229,107,701.04 yuan in the previous year [2] - The net cash flow from operating activities was 355,284,471.35 yuan, significantly higher than 118,570,463.65 yuan from the previous year [2] - Basic and diluted earnings per share were both 0.33 yuan, compared to 0.14 yuan in the same period last year [2] - The weighted average return on equity was 7.58%, up from 3.58% year-on-year [2] Segment Performance - The waterborne power equipment segment, particularly the subsidiary Baisheng Power, achieved revenue of 485 million yuan, a year-on-year increase of approximately 28%, with net profit of 58 million yuan, up 13% [1][2] - Baisheng Power has been on a growth trajectory since 2021, with revenue and net profit in the first half of 2025 more than doubling compared to the same period in 2021 [1][2] - In the intelligent packaging equipment segment, the subsidiary Fosber Asia recorded a historic high in new orders, with revenue and net profit for the first half of the year being the best in nearly five years since 2021, with significant year-on-year growth in both complete lines and parts services [3]

Core Insights - Oriental Precision Engineering (东方精工) experienced a stock price surge of over 7% on July 18, reaching 13.2 CNY per share, an increase of 5.35% [1] - The company has established itself as a leader in the intelligent packaging equipment sector, holding the largest market share in China and ranking among the top two globally [1] - The high-end brand Fosber has captured over 50% of the North American market, reinforcing the company's leading position in the global intelligent packaging equipment field [1] Financial Performance - On July 9, the company announced a projected net profit for the first half of 2025, estimated between 360 million CNY and 426 million CNY, representing a year-on-year growth of 120% to 160% [1] - The expected net profit, excluding non-recurring gains and losses, is projected to be between 252 million CNY and 275 million CNY, reflecting a growth of 10% to 20% compared to the previous year [1] - The corrugated paper packaging equipment business maintained steady revenue and profit, while the water propulsion equipment segment continued its growth trend with revenue growth exceeding 20% since 2020 [1] Investment and Global Presence - The company has achieved a global business asset layout, providing products and technical services to clients in over 100 countries and regions [2] - In Asia, the company operates R&D and production bases in Foshan, Suzhou, and Shenzhen; in Europe, it has four R&D and production bases in Italy and Spain; and it also has production bases and service points in the United States and Mexico [2]