Core Viewpoint - The report highlights the recent performance and future prospects of the company, particularly focusing on its mining investments and innovative products, despite facing challenges in revenue and profit margins due to specific project impacts. Group 1: Company Performance - The company reported a revenue of 413 million yuan for the first half of 2025, a decline of 34.04% year-on-year, but revenue remained stable when excluding EPC projects [2][3] - The net profit attributable to shareholders was 16.99 million yuan, down 79.86% year-on-year, but showed a 100.34% increase compared to the first quarter of 2025 [2][3] Group 2: Project Impact - The significant fluctuation in performance is attributed to the absence of EPC project revenues, which contributed 200 million yuan in the previous year [3] - Increased capital expenditures led to a 50% rise in fixed asset depreciation costs, reaching approximately 45 million yuan [3] - R&D expenses rose to 24.91 million yuan, an increase of 9.73 million yuan year-on-year, primarily due to costs associated with the trial phase of the second-generation composite liner product [3] Group 3: Mining Investments - The company has invested in the Cordoba mining project in Colombia, holding a 50% stake after a direct investment of 100 million USD [4] - The project has a proven reserve of 97.95 million tons, with copper grade at 0.41%, gold grade at 0.23 grams/ton, and silver grade at 2.63 grams/ton [4] - The project is awaiting EIA approval, with expectations to commence construction within two years after approval [5] Group 4: Future Growth Strategy - The company plans to continue its dual-driven strategy in mining investments, focusing on copper and gold due to favorable market conditions and customer concentration [6][7] - The second-generation forged composite liner product shows significant advantages in wear resistance and energy consumption, with a lifespan improvement of nearly 100% compared to traditional cast liners [8][9] - The company has established five overseas bases, aiming for a total production capacity of 3 billion yuan, driven by capacity release and new product breakthroughs [8][10] Group 5: Revenue Recognition and Client Base - The second-generation forged composite liners are currently in trial use at several domestic and foreign mining clients, with significant revenue recognition expected to begin in the fourth quarter of this year [9][10] - The company has secured trial agreements with foreign clients, anticipating widespread adoption in the coming year [9]

Group 1: Financial Performance - The company achieved a revenue of 413 million CNY in the first half of 2025, a decrease of 34.04% compared to the same period last year, but revenue remained stable when excluding EPC projects [2] - The net profit attributable to shareholders was 16.99 million CNY, down 79.86% year-on-year, but increased by 100.34% compared to the first quarter of 2025 [2] - The significant fluctuations in performance were attributed to the absence of EPC project income, increased capital expenditures, and a rise in R&D expenses to 24.91 million CNY, an increase of 973.39 thousand CNY year-on-year [3] Group 2: Mining Projects - The Colombian copper-gold mine project has a proven reserve of 97.95 million tons, with copper grade at 0.41%, gold grade at 0.23 g/t, and silver grade at 2.63 g/t [4] - The project is awaiting EIA approval, which is expected to be granted in the second half of this year, allowing for the completion of the equity transfer [5] - The company plans to continue investing in mining, focusing on copper and gold due to strong customer demand and resource advantages [6] Group 3: Product Development - The forged composite liner has significantly improved wear life, increased mill efficiency, and reduced energy consumption per ton of ore [7] - The second set of forged composite liners has been installed, with the first set showing nearly double the lifespan compared to traditional cast metal liners [8] - The new generation of forged liners is expected to generate substantial revenue starting in the fourth quarter of this year as they transition from trial to widespread use [9] Group 4: Future Growth Strategy - The company anticipates that overseas production bases will gradually come online, leading to sustained capacity and order releases [10] - The innovative second-generation forged composite liner is in the early stages of scaling up from trials to full production [10] - Strategic investments in copper and gold resources provide clear long-term growth potential [10]

Core Viewpoint - The company reported a significant decline in revenue and net profit for the first half of 2025, but it is optimistic about future growth driven by overseas market expansion and innovative product development. Financial Performance - The company achieved a revenue of 413 million yuan, a decrease of 34.04% year-on-year, but revenue excluding EPC projects remained stable compared to last year [2] - The net profit attributable to shareholders was 16.99 million yuan, down 79.86% year-on-year, but showed a 100.34% increase compared to the first quarter of 2025 [2] Market Expansion - The company is actively pursuing an overseas sales strategy, with overseas revenue accounting for 54.88% of total revenue in the mid-year report, up from 44.98% in the first quarter [2] Challenges Faced - The decline in performance is attributed to the absence of EPC project revenues, increased fixed asset depreciation costs (up approximately 50% to around 45 million yuan), foreign exchange losses of 2.66 million yuan, and increased R&D expenses of 24.91 million yuan [3] Acquisition Progress - The company is in the final stages of obtaining environmental approval for the acquisition of a copper-gold mine in Colombia, with expectations to complete the equity transfer within 1-2 months [4] Future Investment Strategy - The company plans to continue investing in the mining sector, focusing on copper and gold due to the chairman's expertise and existing partnerships in these areas [5] Overseas Base Potential - The company has established five overseas bases and anticipates total production capacity to reach 3 billion yuan, driven by capacity release and new product breakthroughs [6] Product Development - The second-generation forged composite liner product is expected to significantly enhance mining efficiency and is currently in the trial phase with various clients, with large-scale revenue recognition anticipated to begin in Q4 2025 [8] Competitive Position - The company has no direct domestic competitors in its niche of wear-resistant parts, and its products have a 40%-50% longer lifespan compared to major international competitors, providing a competitive edge [8] Growth Logic - Future growth is expected from the gradual production of overseas bases, the innovative second-generation liner product, and strategic investments in copper and gold resources [9]

Group 1: Company Performance Overview - The company achieved a revenue of 413 million CNY in the first half of 2025, a decrease of 34.04% compared to the same period last year. Excluding EPC projects, revenue remained stable year-on-year [3] - The net profit attributable to shareholders was 16.99 million CNY, down 79.86% year-on-year, but showed a 100.34% increase compared to the first quarter of 2025 [3] Group 2: Factors Affecting Performance - The absence of EPC project income, which contributed 200 million CNY in the previous year, significantly impacted revenue [5] - Capital expenditures increased, with fixed asset depreciation rising approximately 50% year-on-year to around 45 million CNY [5] - Foreign exchange losses amounted to 2.66 million CNY [5] - R&D expenses reached 24.91 million CNY, an increase of 9.73 million CNY year-on-year, primarily due to costs associated with the second-generation liner product [5] Group 3: Market Expansion and Future Prospects - The company has made significant progress in overseas market expansion, with overseas revenue increasing from 44.98% in Q1 to 54.88% in the mid-year report [3] - The company is optimistic about future growth, projecting total production capacity to reach 3 billion CNY, driven by capacity release and new product breakthroughs [7] - The second-generation forged liner product is expected to significantly enhance mining efficiency and is currently in trial use with various clients [7][9] Group 4: Competitive Positioning - The company does not have direct domestic competitors in the listed company sector, as most competitors are complete machine manufacturers. The company focuses on wear parts, which account for over 85% of its business [8] - Compared to international competitors, the company maintains a gross margin close to that of its peers, with overseas margins even higher, leveraging cost advantages and a vertically integrated model [8] - The second-generation forged liner has a lifespan 40%-50% longer than that of major competitors, showcasing significant technological superiority [8]