Core Insights - Meili Technology (300611) reported a record high revenue of 900 million yuan for the first half of 2025, representing a year-on-year growth of 25.25% [1] - The company achieved a net profit attributable to shareholders of 80 million yuan, marking a significant increase of 71.98% year-on-year, also a historical high for the same period [1] Financial Performance - The revenue from high-end spring products, particularly suspension system springs, reached 475 million yuan, with a year-on-year growth of 23.20% [3] - The gross margin for suspension system springs improved to 18.05%, an increase of 8.16 percentage points compared to the previous year, indicating strong cost control and enhanced product value [3] - Overall, the company's sales gross margin for the first half of the year was 24.41%, up by 4.12 percentage points year-on-year, while the net profit margin was 9.09%, an increase of 2.73 percentage points [3] - The diluted return on equity (ROE) was 6.53%, reflecting a rise of 2.15 percentage points compared to the same period last year [3] Product and Market Position - Meili Technology specializes in the research, production, and sales of high-end spring products, which are primarily used in the automotive industry, as well as in engineering machinery, aerospace, military, nuclear power, valves, and robotics [3] - The company is also expanding into the humanoid robot sector, with elastic components being applicable in robotic hands and joints, and has received small batch orders for related products such as extension springs, torsion springs, and snap rings [4]

Company Overview - Zhejiang Meili Technology Co., Ltd. (the "Company") was established in May 2002 and is headquartered in Shaoxing, Zhejiang Province. The Company was transformed from Zhejiang Meili Spring Co., Ltd. in November 2010 and is listed on the Shenzhen Stock Exchange since February 20, 2017 [2][3] - The Company operates in the general equipment manufacturing industry, specifically in the spring manufacturing sector, focusing on the research, production, and sales of various types of springs, including suspension system springs, body and interior springs, power system springs, and general springs [2][3] Financial Reporting - The financial statements of the Company are prepared based on the assumption of going concern, indicating no significant doubts about the Company's ability to continue operations for at least the next 12 months [3] - The Company adheres to the accounting principles set forth by the relevant enterprise accounting standards, ensuring that the financial statements accurately reflect its financial position, operating results, and cash flows [3][4] Accounting Policies - The Company employs specific accounting policies and estimates tailored to its operational characteristics, including those related to financial instruments, fixed asset depreciation, and revenue recognition [3][4] - The Company uses the Chinese Yuan (RMB) as its functional currency for accounting purposes [4] Inventory and Cost Management - Inventory is measured at the lower of cost and net realizable value, with provisions for inventory write-downs made when necessary [16] - The Company uses a perpetual inventory system and applies a monthly weighted average method for inventory issuance [16] Long-term Investments - Long-term equity investments are accounted for based on the nature of control, with different accounting treatments for investments in controlled, jointly controlled, and significantly influenced entities [20][21] Revenue Recognition - The Company recognizes revenue based on the fulfillment of performance obligations, determining whether these obligations are satisfied over time or at a point in time [32] - Revenue is measured at the transaction price expected to be received from customers for the transfer of goods or services [32]