Core Viewpoint - ST New Power Technology Co., Ltd. (ST New Power) has shown significant improvement in its financial performance for the first half of 2025, with a notable 25.91% year-on-year increase in net profit attributable to shareholders, driven by cost reduction and efficiency enhancement initiatives [1][2]. Financial Performance - In the first half of 2025, ST New Power reported a net profit of -7.29 million yuan, a substantial improvement from -9.83 million yuan in the same period last year, indicating a strong recovery in profitability [2]. - The core business segment, "Clean Combustion and Boiler Energy Efficiency Improvement," achieved revenue of 92.65 million yuan with a gross margin of 27.37%, up 3.64% year-on-year, reflecting improved product pricing power and cost control [2]. - The company successfully reduced various expenses, with sales expenses down 18.89% to 5.62 million yuan, management expenses down 4.58% to 27.32 million yuan, and financial expenses down 19.52% to 1.80 million yuan, enhancing profit margins [2]. - As of June 30, total assets reached 747 million yuan, with net assets attributable to shareholders at 235 million yuan, maintaining a solid financial foundation amid industry fluctuations [2]. Innovation and Policy Support - ST New Power holds 338 national invention patents and has established high-end R&D platforms, including an academician workstation and a national postdoctoral research station, with three new patents granted during the reporting period [3]. - R&D investment reached 4.19 million yuan, a 1.10% increase year-on-year, fueling ongoing innovation [3]. - The company is involved in key national R&D projects, including the "Megawatt-level Hydrogen-Ammonia Burner," positioning itself at the forefront of clean combustion technology [3]. - Benefiting from national "dual carbon" strategies and various supportive policies, the company anticipates increased market demand for its leading products, such as low-nitrogen burners and industrial waste gas treatment solutions [3]. Strategic Achievements - In the first half of 2025, ST New Power secured new orders worth 131 million yuan in energy-saving and environmental protection projects, with a substantial order backlog of 465 million yuan, ensuring clear revenue growth for the next 1-2 years [4]. - The core subsidiary, Xuzhou Combustion Control Research Institute Co., Ltd., generated revenue of 95.03 million yuan and a net profit of 9.94 million yuan, becoming a key contributor to the company's profitability [4]. - The subsidiary benefits from a 15% corporate income tax rate as a high-tech enterprise, further enhancing overall profitability [4]. - The company has established a rectification leadership group to address regulatory concerns, improve internal controls, and strengthen management mechanisms for its subsidiaries, laying a solid foundation for sustainable development [4].