Investment Rating - The investment rating for the company is "Buy" and is maintained [7]. Core Viewpoints - The company reported a revenue of 2.8 billion yuan for the first half of 2025, a year-on-year decrease of 14%, with a net profit attributable to shareholders of -30 million yuan, down 722% year-on-year [2][4]. - The second quarter revenue was 1.5 billion yuan, a decline of 16% year-on-year, with a net profit of 10 million yuan, down 80% year-on-year [2][4]. - The company's revenue from window and door hardware products is under pressure due to a decline in construction completions, with a reported 15% decrease in construction area [4]. - The gross margin for window and door hardware remains stable at approximately 30.4%, with a slight year-on-year decrease of 0.9 percentage points [4]. - The company has seen a 31% year-on-year increase in overseas market revenue, which now accounts for 17% of total revenue [4]. Summary by Sections Financial Performance - The company achieved total revenue of 6.638 billion yuan in 2024, with projections of 6.495 billion yuan in 2025 and 7.004 billion yuan in 2026 [14]. - The net profit attributable to shareholders is projected to be approximately 1.7 billion yuan in 2025 and 3.3 billion yuan in 2026, corresponding to valuation multiples of 47 and 24 times, respectively [4]. Market Dynamics - The revenue from window and door systems, which constitutes about 50% of total revenue, saw an 18% decline year-on-year, while related products experienced an 8% increase [4]. - The company’s gross margin for window and door hardware systems is maintained at around 40%, indicating strong pricing power in this segment [4]. Operational Insights - The cash collection ratio has slightly improved, with a net cash flow from operating activities of -200 million yuan for the first half of 2025 [4]. - The company is focusing on improving operational quality despite facing challenges from heavy asset expansion in new product categories [4].