Core Viewpoint - The company reported a significant revenue growth of 61.7% year-on-year for the first half of 2025, driven by the rapid development of the low-altitude economy, while also showing improvements in profit margins despite still reporting a net loss [1] Financial Performance - In 1H25, the company achieved a revenue of 130 million yuan, with a net profit attributable to shareholders of -36 million yuan, an improvement from -53 million yuan in 1H24 [1] - The second quarter of 2025 saw a notable revenue increase of 71.2% year-on-year and a 147.3% quarter-on-quarter growth, reaching 100 million yuan [1] - The gross margin for 1H25 improved by 4.0 percentage points to 53.2%, while the net margin improved by 36.1 percentage points to -28.2% [1] Product Development and Market Expansion - The company upgraded its JOS-C700 vertical take-off and landing fixed-wing unmanned system, achieving breakthroughs in environmental adaptability and intelligence [2] - The launch of the JOS-P200 multi-rotor unmanned system features modular and lightweight design, supporting both fixed and mobile deployments [2] - The company is expanding its low-altitude data service system across various regions, including Ba Zhong and Shao Xing, and is actively pursuing overseas market opportunities [2] Research and Development Investment - R&D investment increased by 13.4% year-on-year, primarily due to investments in fixed-wing and multi-rotor unmanned systems [3] - The company reduced its period expense ratio by 26.2 percentage points to 77.7%, with decreases in sales, management, and R&D expense ratios [2] Cash Flow and Future Outlook - The net cash flow from operating activities for 1H25 was -80 million yuan, an improvement from -100 million yuan in the same period last year [4] - The company is positioned to benefit from the growth of the low-altitude economy, with projected net profits of 7 million yuan, 60 million yuan, and 125 million yuan for 2025 to 2027 [4]

Investment Rating - The report maintains a "Recommended" rating for the company, considering its leading position and multi-field layout both domestically and internationally [4][6]. Core Viewpoints - The company achieved a revenue of 130 million yuan in 1H25, representing a year-over-year growth of 61.7%, while the net profit attributable to the parent company improved to -36 million yuan from -53 million yuan in 1H24 [1]. - The second quarter of 2025 saw significant growth, with a revenue of 100 million yuan, a year-over-year increase of 71.2% and a quarter-over-quarter increase of 147.3% [1]. - The company is expanding its market presence through innovative product development and a comprehensive low-altitude data service system, which is being applied in various regions [2]. - Research and development investments have increased by 13.4%, reinforcing the company's technological barriers [3]. Summary by Sections Financial Performance - In 1H25, the gross profit margin increased by 4.0 percentage points to 53.2%, and the net profit margin improved by 36.1 percentage points to -28.2% [1]. - The company reported a net cash flow from operating activities of -80 million yuan in 1H25, an improvement from -100 million yuan in the same period last year [3]. Market Expansion - The company has launched new products, including the JOS-C700 and JOS-P200 unmanned systems, enhancing its capabilities in various applications such as logistics and emergency response [2]. - The company is actively pursuing international market opportunities, particularly in regions aligned with the Belt and Road Initiative [2]. Research and Development - The company has reduced its expense ratios significantly, with the R&D expense ratio decreasing by 4.3 percentage points to 19.4% [3]. - The focus on R&D is aimed at solidifying the company's competitive edge in the industrial drone sector [3]. Profit Forecast - The projected net profits for 2025, 2026, and 2027 are 7 million yuan, 60 million yuan, and 125 million yuan, respectively, indicating substantial growth potential [5].