Financial Performance - The company reported a total revenue of 706 million yuan for the first half of 2025, representing a year-on-year increase of 10.44% [1] - The net profit attributable to shareholders reached 53.63 million yuan, up 76.83% year-on-year [1] - In Q2 2025, total revenue was 440 million yuan, with a year-on-year growth of 13.4%, and net profit attributable to shareholders was 25.41 million yuan, increasing by 36.24% [1] - The gross margin was 21.39%, a decrease of 7.5% year-on-year, while the net margin improved to 7.59%, an increase of 60.28% [1] - The total of selling, administrative, and financial expenses was 87.11 million yuan, accounting for 12.33% of revenue, down 7.11% year-on-year [1] Balance Sheet Highlights - Accounts receivable amounted to 842 million yuan, with a year-on-year increase of 0.86%, and accounts receivable to net profit ratio reached 1606.21% [1][2] - The company’s interest-bearing debt decreased significantly by 61.59% to 45.27 million yuan [1] - Cash and cash equivalents were reported at 221 million yuan, a slight decrease of 1.48% [1] Business Model and Strategy - The company relies heavily on research and marketing to drive its performance, indicating a need for careful analysis of these underlying factors [2] - The company is expanding its business model beyond traditional water metering to include smart water solutions, driven by market demand for leak control, water conservation, and high-quality supply [3] - The company is transitioning towards a digital service-oriented model in the water sector, creating a comprehensive ecosystem that integrates smart sensing, data-driven management, and engineering services [3]