Core Viewpoint - The company reported its H1 2025 results, showing a slight increase in revenue but a significant decline in net profit, primarily driven by the performance of its digital gas and water sectors, while also highlighting ongoing efforts in product innovation and international expansion [1][3][5]. Revenue and Profit Performance - In H1 2025, the company achieved revenue of 1.539 billion yuan, a year-on-year increase of 3.69%, but the net profit attributable to shareholders was 135 million yuan, down 37.97% year-on-year [1]. - The digital gas segment was the main growth driver, with smart residential gas meter revenue reaching 990 million yuan, up 11.49% year-on-year, although the gross margin decreased by 2.94 percentage points [1]. - The industrial and commercial gas terminal revenue was 320 million yuan, a slight decrease of 0.52% year-on-year, with a gross margin of 47.74%, down 7.58 percentage points [1]. Sector Performance - The digital water sector reported revenue of 110 million yuan, down 5.95% year-on-year, with a gross margin of 31.26%, a slight decrease of 0.15 percentage points [1]. - The public utility sector saw revenue of 120 million yuan, a significant decline of 24.71% year-on-year, with a gross margin of 41.17%, down 9.71 percentage points [2]. Product Development and Innovation - The company is advancing its digital energy and process sectors, with successful testing of gas turbine flow meters for hydrogen and natural gas mixtures, positioning itself as a leader in domestic hydrogen measurement technology [3]. - New product launches include the TCF quality flow meter, TEF electromagnetic flow meter, and TVF vortex flow meter, enhancing the company's measurement solutions across various pressure and medium scenarios [7]. Cost Management and Inventory - The overall gross margin for H1 2025 was 35.9%, down 5.9 percentage points, with specific margins for residential and industrial gas terminals at 31.97% and 47.74%, respectively [4]. - The company reported a total inventory of 550 million yuan and accounts receivable of 2.18 billion yuan, reflecting year-on-year increases of 18.29% and 12.01%, respectively [4]. International Expansion - The company has increased its overseas resource investment, successfully obtaining international certifications for key products and securing orders in several countries along the Belt and Road Initiative, resulting in a 49.79% year-on-year increase in overseas sales [5]. AI and Technology Integration - The company is actively integrating AI technology into its operations, utilizing IoT, big data, and digital twin technologies to enhance safety and operational efficiency in the energy sector [6].

Core Viewpoint - The release of policy dividends is accelerating the high-quality development of the metrology industry, leading to demand upgrades and supply optimization [1]. Group 1: Demand Side - The research indicates that the R&D, verification, and mass production stages of ten key industries will generate significant new demand for high-end calibration and system-level verification [1][2]. Group 2: Supply Side - The new production capacity has high entry barriers, requiring substantial capital and advanced technology, which may significantly benefit leading companies, enhancing their market share and profitability [1][3]. Group 3: Policy Developments - On June 7, 2025, the Ministry of Industry and Information Technology issued the first policy document on metrology in the manufacturing sector, aiming to improve metrology capabilities and support the construction of a modern industrial system [2][3]. - On July 9, 2025, the State Administration for Market Regulation and the Ministry of Industry and Information Technology jointly released an action plan for metrology to support the development of new production capacity from 2025 to 2030, emphasizing the foundational role of metrology in high-quality industrial development [2][3].

Core Viewpoint - The Ministry of Industry and Information Technology has released the "Opinions on the Innovative Development of Manufacturing Measurement," aiming for significant advancements in manufacturing measurement by 2027, including breakthroughs in over 100 key calibration technologies [1][2]. Group 1: Development Goals - By 2027, the goals include achieving breakthroughs in over 100 key calibration technologies, revising over 300 industry calibration standards, and developing over 100 sets of measuring instruments and standard substances [2][3]. - By 2030, the focus will shift to enhancing the comprehensive strength of measurement in important fields, supporting high-quality development in manufacturing [2][3]. Group 2: Key Tasks - The "Opinions" outlines 14 key tasks across three areas, including enhancing effective supply in manufacturing measurement, deepening application empowerment, and promoting innovation upgrades [3][4]. - Key tasks include breaking through common measurement technologies, accelerating the development of high-end measuring instruments, and improving the measurement technical specification system [3][4]. Group 3: Challenges and Solutions - Current challenges in manufacturing measurement include insufficient effective supply, single measurement service models, and a lack of high-level measurement institutions [3][4]. - Proposed solutions involve innovating measurement service models, strengthening measurement verification services, and establishing advanced measurement service systems [3][4]. Group 4: Resource Collaboration - The establishment of a collaborative platform for measurement innovation is crucial to address the fragmentation of resources and enhance the synergy between research institutions, third-party testing agencies, and enterprise needs [5]. - This platform aims to activate the entire measurement innovation chain, accelerating technology diffusion and cost reduction [5]. Group 5: Long-term Vision - The "Opinions" align with the "Measurement Development Plan (2021-2035)," which envisions significant improvements in national measurement technology and the establishment of a modern advanced measurement system by 2035 [5].

Core Viewpoint - The Ministry of Industry and Information Technology (MIIT) emphasizes the importance of supporting qualified metrology institutions in their efforts to raise funds through public listings and financing [1] Group 1: Financing Support - The MIIT encourages financial institutions to increase their financing support for metrology institutions, provided that it is compliant with laws and regulations and risks are manageable [1] - A special initiative for "integrated technology industry finance" will be implemented to promote early-stage investments and venture capital in the industrialization of metrology technology achievements [1] Group 2: Policy Incentives - The MIIT aims to establish a comprehensive policy framework that incentivizes companies to increase their investment in metrology [1] - Companies that purchase new metrology instruments, in accordance with national regulations, will be allowed to deduct these costs from their taxable income in the current period [1]

Core Insights - The event held on May 20 in Guangzhou emphasized the role of innovation in measurement technology, aiming to enhance high-quality development in Shenzhen and Guangdong [1] - The launch of the Guangdong-Hong Kong-Macao Greater Bay Area Measurement Development Cooperation Platform signifies a collaborative effort to improve measurement standards and practices [2] Group 1 - The event showcased AI technology's influence on measurement, indicating a shift towards precision in measuring technological advancements [1] - Guangdong's measurement system includes 3 national measurement standards, 8,747 public measurement standards, and 4,394 enterprise measurement standards, which are crucial for high-quality manufacturing [2] - The province has established a comprehensive measurement service system, including 35 measurement testing centers, with 7 at the national level and 28 at the provincial level [2] Group 2 - The Guangdong-Hong Kong-Macao Greater Bay Area Measurement Regional Center aims to enhance cooperation and resource sharing among the three regions, improving measurement capabilities and international connectivity [2] - The province conducts free inspections on over 10 million measurement instruments annually, ensuring accuracy in various sectors such as trade, healthcare, and environmental monitoring [1]