Core Viewpoint - Deep Technology (000021) reported a strong performance in its 2025 mid-year financial results, with significant increases in revenue and net profit compared to the previous year [1] Financial Performance - The total revenue for the first half of 2025 reached 7.74 billion yuan, a year-on-year increase of 9.71% - The net profit attributable to shareholders was 452 million yuan, up 25.39% year-on-year - In Q2 2025, the revenue was 4.375 billion yuan, reflecting an 11.37% increase year-on-year, while the net profit for the quarter was 273 million yuan, up 14.41% year-on-year [1] - The gross margin was 15.75%, down 5.69% year-on-year, while the net margin improved to 7.76%, an increase of 16.79% year-on-year [1] - The total of selling, administrative, and financial expenses was 64.11 million yuan, accounting for only 0.83% of revenue, a significant decrease of 86.05% year-on-year [1] Balance Sheet Highlights - Cash and cash equivalents increased to 9.328 billion yuan, a rise of 3.36% year-on-year - Accounts receivable grew to 3.854 billion yuan, up 12.03% year-on-year, with accounts receivable to net profit ratio at 414.24% [1] - Interest-bearing liabilities decreased to 7.918 billion yuan, down 19.27% year-on-year [1] Investment Metrics - The company’s return on invested capital (ROIC) was 4.92%, indicating a relatively weak capital return [3] - The historical median ROIC over the past decade was 4.1%, with the lowest recorded ROIC at 0.44% in 2015 [3] - The net profit margin for the previous year was 7.33%, suggesting average added value for products or services [3] Company Overview - Deep Technology is a leading global electronic manufacturing services (EMS) provider, focusing on a one-stop service for electronic product manufacturing, including R&D, design, production, supply chain management, and logistics [6] - The company has established a development strategy centered on three main business areas: storage semiconductors, high-end manufacturing, and intelligent measurement terminals [6]