Core Viewpoint - Tian Tie Technology (300587) reported a significant decline in revenue and net profit for the first half of 2025, indicating financial distress and increased operational costs [1] Financial Performance - Total revenue for the first half of 2025 was 667 million yuan, a decrease of 34.31% year-on-year [1] - The net profit attributable to shareholders was -68.33 million yuan, down 185.77% compared to the previous year [1] - In Q2 2025, revenue was 309 million yuan, a decline of 26.34% year-on-year, with a net profit of -78.59 million yuan, a drop of 229.26% [1] - The gross margin was 25.16%, down 8.37% year-on-year, while the net margin was -8.95%, a decrease of 215.3% [1] - Total expenses (selling, administrative, and financial) reached 223 million yuan, accounting for 33.48% of revenue, an increase of 83.06% year-on-year [1] Key Financial Ratios - Earnings per share (EPS) was -0.06 yuan, a decrease of 185.71% year-on-year [1] - The company's return on invested capital (ROIC) was 1.76% last year, with a historical median ROIC of 11.63% since its listing [3] - The company has experienced a negative cash flow situation, with average operating cash flow over the past three years being -21.97% of current liabilities [3] Business Model and Market Position - The company relies heavily on research and marketing for its performance, indicating a need for further investigation into these drivers [3] - The manufacturing of battery-grade lithium metal involves high technical barriers, requiring advanced technology and equipment [5] - The company has established a strong talent barrier due to the specialized nature of the lithium industry, with core management having extensive experience [5] - Safety management is critical in lithium production, with compliance to stringent regulations and a secure production environment [5]