Core Viewpoint - Suzhou Sileck Precision Equipment Co., Ltd. reported a total revenue of 920.41 million yuan for the first half of 2025, a year-on-year increase of 37.62%, but a net profit attributable to shareholders of the listed company of -20.27 million yuan, a year-on-year decrease of 214.98% due to increased costs from asset investment and revenue growth despite strong performance in the battery shell business [1][2]. Group 1: Financial Performance - The total revenue for the first half of 2025 was 920.41 million yuan, reflecting a 37.62% increase year-on-year [1]. - The net profit attributable to shareholders was -20.27 million yuan, marking a 214.98% decrease year-on-year [1]. - The battery shell business generated revenue of 621.13 million yuan, a 53.99% increase year-on-year, with improving gross margins [1][2]. Group 2: Business Development - The battery shell business is expanding due to technological advantages, maintaining double-digit revenue growth [2]. - Collaborations with major clients like CATL and new partnerships, including a memorandum of understanding with Dongwon Systems, aim to establish a joint venture for battery shell operations in the U.S. and Europe [2][3]. - The traditional can/cap industry is recovering, with new product developments such as disposable aluminum cups and a strategic cooperation agreement with Aorikin, projected to involve 500 million yuan over five years [2][3]. Group 3: Future Outlook - The company expects improved gross margins for the battery shell business in the second half of the year, supported by existing contracts [3]. - The company has made significant advancements in the development of harmonic reducer flexible wheels, enhancing its capabilities in ultra-precision metal processing [2][3]. - The partnership with Dongwon Systems will focus on battery shell operations in North America and Europe, utilizing DWI and DRD technologies for production [3].

Financial Performance - In the first half of 2025, the company achieved total revenue of 920.41 million yuan, an increase of 37.62% compared to the same period last year [2] - The net profit attributable to shareholders was -20.27 million yuan, a decrease of 214.98% year-on-year [2] - The battery shell business generated revenue of 621.13 million yuan, a year-on-year growth of 53.99% [2] Business Development - The company is expanding its market share through technological advantages, maintaining double-digit growth in the battery shell business [3] - Collaborations with major clients such as CATL, Yiwei Lithium Energy, and Ganfeng Lithium are ongoing, with a new partnership established with Yantai Lihua Power Technology [3] - A memorandum of understanding was signed with Dongwon Systems Corporation to form a joint venture for battery shell business in the US and Europe [3][7] Product Innovation - The traditional can/cover industry is showing signs of recovery, prompting the development of new products like disposable aluminum cups [4] - A strategic cooperation agreement with Aorikin was signed, involving an estimated investment of 500 million yuan for new production lines and technology services [4][7] - Significant breakthroughs were made in the research and development of harmonic reducer flexible wheels, enhancing the application of precision metal processing technology [4][6] Future Outlook - The company anticipates improved performance in the second half of 2025, driven by scale effects and better margins in the battery shell business [5] - The traditional can/cover business is expected to perform better in the second half of the year, supported by existing contracts [5] - The joint venture with Dongwon Systems Corporation aims to enhance competitiveness in the overseas battery shell market [7]