Core Viewpoint - Kunshan Kersen Science & Technology Co., Ltd. reported a decline in revenue and net profit for the first half of 2025, primarily due to challenges in product gross margins and increased costs associated with research and development efforts aimed at overcoming technical bottlenecks [2][3][7]. Company Overview and Financial Indicators - The company’s revenue for the first half of 2025 was approximately CNY 1.58 billion, a decrease of 9.13% compared to the same period last year [3][7]. - The total profit for the period was a loss of approximately CNY 105 million, an improvement from a loss of CNY 175 million in the previous year [3][7]. - The net profit attributable to shareholders was approximately CNY -105 million, compared to CNY -161 million in the same period last year [3][7]. - The company’s total assets decreased by 4.09% to approximately CNY 5.33 billion, while net assets attributable to shareholders decreased by 4.87% to approximately CNY 2.14 billion [3][7]. Industry and Main Business Situation - The company operates in the precision metal manufacturing industry, utilizing modern technologies such as computer technology, new materials, and precision manufacturing techniques to produce components for various sectors including consumer electronics, medical devices, and automotive [6][7]. - The demand for high-precision and high-quality components is increasing, driven by rapid advancements in industries such as telecommunications, computing, and aerospace [6][7]. - The company employs various manufacturing processes including precision die-casting, stamping, CNC machining, and laser cutting to meet the diverse needs of its clients [7][8]. Operational Analysis - The company’s product sales remained stable, benefiting from a recovery in the consumer electronics sector, which is the primary source of revenue [8][9]. - The company has made progress in new product areas, such as the assembly of folding phone hinges, which has contributed to improved gross margins [8][9]. - Future growth is anticipated in sectors such as new energy vehicles and solid-state battery materials, with the company actively seeking to expand its client base in these emerging markets [8][9]. Competitive Advantages - The company has developed a robust manufacturing technology system and holds over 400 patents, including more than 100 invention patents, enhancing its competitive edge in the market [9][10]. - Continuous investment in research and development has strengthened the company's ability to respond to customer needs and market changes effectively [9][10]. - The company maintains a strict quality control system and has received multiple certifications, ensuring compliance with international standards and enhancing product quality [10][11].