Core Viewpoint - The financial performance of LianDe Co., Ltd. shows positive growth in revenue and net profit for the first half of 2025, indicating improved profitability and operational efficiency [1]. Financial Performance - Total revenue for the first half of 2025 reached 587 million, a year-on-year increase of 1.53% - Net profit attributable to shareholders was 109 million, up 11.66% year-on-year - In Q2 2025, total revenue was 312 million, reflecting an 8.24% increase year-on-year - Q2 net profit was approximately 62.96 million, a significant rise of 37.19% year-on-year - Gross margin improved to 36.84%, up 4.73% year-on-year, while net margin increased to 18.71%, up 10.35% year-on-year [1]. Cost Management - Total selling, administrative, and financial expenses amounted to 42.96 million, accounting for 7.32% of revenue, a decrease of 4.86% year-on-year - Earnings per share (EPS) increased to 0.46, a rise of 12.2% year-on-year - Operating cash flow per share was 0.52, reflecting a 27.01% increase year-on-year [1]. Asset and Liability Changes - Trading financial assets increased by 88.63% due to the purchase of financial products measured at fair value - Prepayments rose by 49.29% due to increased advance payments for materials - Other current assets decreased by 30.59% due to a reduction in input VAT [2]. - Contract liabilities surged by 87.65% as a result of increased advance payments from customers [2]. Investment and Returns - The company's return on invested capital (ROIC) was 6.94%, indicating average capital returns - Historical data shows a median ROIC of 16.31% since the company went public, suggesting strong investment returns over time [4]. Debt and Cash Flow - The company maintains a healthy cash position, indicating strong debt repayment capabilities [5]. - Net cash flow from investing activities decreased by 52.09% due to reduced cash inflows from maturing bank wealth management products [4]. Market Position and Future Outlook - LianDe Co., Ltd. is recognized as a national-level specialized "little giant" enterprise, holding a competitive position in the air compressor and refrigeration compressor parts sector [9]. - The company plans to expand into high-end markets, focusing on compressor parts and high-end energy equipment, while also exploring opportunities in North America, Europe, and Asia [10]. Fund Management - The largest fund holding LianDe Co., Ltd. is the Nuoan Pioneer Mixed A fund, with a scale of 3.84 billion and a recent net value increase of 1.81% [8]. - The fund manager, Yang Gu, is noted for his strong stock selection capabilities, particularly in value and growth stocks [6].