Core Viewpoint - The company reported a decline in revenue and net profit for the first half of 2025, but remains optimistic about long-term growth driven by overseas HJT equipment and semiconductor manufacturing expansion [1][4]. Financial Performance - In H1 2025, the company achieved revenue of 4.21 billion yuan, a year-on-year decrease of 13.5% - The net profit attributable to shareholders was 390 million yuan, down 14.6% year-on-year - Q2 revenue was 1.98 billion yuan, a quarter-on-quarter decline of 11.0%, while net profit for Q2 was 230 million yuan, showing a quarter-on-quarter increase of 43.0% [1]. Margin Improvement - The company reported a gross margin of 39.0% in Q2 2025, an increase of 8.0 percentage points year-on-year and 9.9 percentage points quarter-on-quarter - The net profit margin was 12.3%, up 4.8 percentage points year-on-year and 5.4 percentage points quarter-on-quarter - The improvement in gross margin is attributed to revenue recognition from overseas HJT equipment and semiconductor equipment [1]. Cost Management - The company recorded a provision for impairment of approximately 400 million yuan in H1 2025, accounting for 9.4% of revenue, an increase of 4.7 percentage points year-on-year - The provision mainly relates to credit impairment of 300 million yuan due to pressure on profitability from downstream solar industry clients - The total expense ratio for sales, management, R&D, and financial expenses was 17.40%, a decrease of 1.24 percentage points year-on-year, indicating effective cost control [2]. Equipment and Market Expansion - The company has accelerated its layout in semiconductor equipment, focusing on etching and thin film deposition equipment - High-selectivity etching equipment and atomic layer deposition equipment have entered mass production after multiple customer deliveries - The company maintains a leading market share in domestic wafer laser grooving equipment and has developed various bonding equipment, enhancing its overall solution offerings [3]. Profit Forecast and Valuation - The company has revised down its net profit forecasts for 2025-2027 to 912 million, 1.029 billion, and 1.090 billion yuan, representing decreases of 23%, 21%, and 25% respectively - The estimated EPS for these years is 3.26, 3.68, and 3.90 yuan - Despite short-term profit impacts from slower revenue recognition in the solar business, the acceleration in semiconductor equipment layout is expected to open new growth avenues [4].

Core Viewpoint - The company reported a decline in revenue and net profit for the first half of 2025, primarily due to challenges in the photovoltaic sector and a significant growth in the semiconductor business [1][2][3] Financial Performance - The company achieved revenue of 4.213 billion yuan in the first half of 2025, a year-on-year decrease of 13.48% [1] - The net profit attributable to shareholders was 394 million yuan, down 14.59% year-on-year, while the net profit after deducting non-recurring items was 364 million yuan, a decrease of 10.18% [1] - In Q2 alone, revenue was 1.984 billion yuan, reflecting a 25.15% year-on-year decline [2] Business Segment Analysis - The photovoltaic business generated revenue of 4.065 billion yuan in the first half, contributing significantly to the overall revenue decline due to a slowdown in order receipt amid low industry demand [2] - The semiconductor and display business saw rapid growth, with revenue reaching 127 million yuan, a remarkable increase of 496.9% year-on-year [3] - The company has made significant advancements in semiconductor equipment, particularly in etching and thin film deposition, and has maintained a leading market share in domestic wafer laser grooving equipment [3] Inventory and Cash Flow - As of the end of Q2, the company's inventory stood at 7.58 billion yuan, a decrease of 1.34 billion yuan from the beginning of the year, while accounts receivable increased by 910 million yuan to 4.86 billion yuan [2] - The net cash flow from operating activities was -1.067 billion yuan, primarily impacted by slow customer payment collection [2] Investment Outlook - The company maintains its profit forecast, expecting net profits attributable to shareholders to be 829 million yuan, 640 million yuan, and 791 million yuan for 2025-2027, with dynamic PE ratios of 28.8, 37.3, and 30.2 respectively [3] - The company's strong technical capabilities and rapid growth in the semiconductor business support a "recommended" rating [3]