Financial Performance - In the first half of 2025, the company achieved total revenue of approximately 688 million CNY, a year-on-year increase of 13.77% [2] - The net profit was -66.70 million CNY, with a year-on-year growth of 24.77% [2] - The non-recurring net profit was -74.21 million CNY, reflecting a year-on-year increase of 21.23% [2] - Despite remaining in a loss position, the company narrowed its loss compared to the same period last year while achieving revenue and net profit growth [2] Business Development - The company has made significant progress in the low-altitude economy, launching three core products: the tri-redundant flight control computer, smart take-off and landing field, and low-altitude integrated service platform [2] - Collaborations with major manufacturers in the UAV sector have led to signed orders and ongoing ground and flight testing [2] - The establishment of a joint venture with Hangzhou Low Altitude Company focuses on "full lifecycle services for low-altitude governance flights" [2] Shareholder and Stock Repurchase Information - Hangzhou Urban Investment holds 4.79% of the company's shares, making it the largest shareholder [3] - As of July 31, 2025, the company has repurchased 3,274,600 shares, accounting for 0.48% of the total share capital, with a total transaction amount of 24,620,654 CNY [3] Loss Reduction Factors - The reduction in losses is attributed to increased orders and project delivery scale in the smart transportation business, as well as steady growth in the semiconductor single crystal silicon materials sector [3] - Effective cost control measures have also contributed to the improvement in overall gross profit [3] Challenges and Future Strategies - The gross margin of the smart transportation business has declined due to varying project requirements and economic conditions across different regions [3] - The company plans to implement management reforms, process optimizations, and increased R&D investment to enhance product quality and market share [3] - Continuous orders exceeding 2.5 billion CNY in the rail transportation sector over the past three years indicate potential for steady future growth, although various factors may impact performance [3] Health Sector Developments - The health business encompasses three main areas: scientific anti-aging research, medical device CDMO, and synthetic biology health products [4] - Products in the health sector are primarily developed through outsourcing, with a focus on innovative solutions in anti-aging and health technology [4] Future Directions - The company aims for digital transformation as a primary development pathway, focusing on building an integrated transportation ecosystem and enhancing core industries [4] - The establishment of a new base in Pujiang is underway, with production expected to start this year [4] - Collaborative investments in computing power and infrastructure development are being pursued to support future growth [4]

Group 1: Financial Performance - In the first half of 2025, the company achieved operating revenue of 688 million yuan, a year-on-year increase of 13.77% [1] - The net profit attributable to shareholders was a loss of 66.7 million yuan, narrowing the loss by 24.77% year-on-year [1] - In Q2, the company recorded approximately 468 million yuan in operating revenue, a quarter-on-quarter increase of about 112.67%, and reduced the net loss by approximately 66.53% compared to Q1 [1] Group 2: Smart Transportation Business - The smart transportation segment generated revenue of 439 million yuan in the first half of 2025, representing a year-on-year growth of 16.77% [2] - The company secured new orders worth 1.046 billion yuan, a year-on-year increase of 52.89% [2] - Notably, the company won the bid for the signal system project of the Astana Light Rail in Kazakhstan, marking a significant achievement in exporting key Chinese rail transit technology along the "Belt and Road" [2] Group 3: Low Altitude and Low Orbit Development - The company is expanding into low altitude and low orbit sectors, forming an integrated "air-ground" layout [3] - In the low altitude economy, the company is advancing core products such as flight control computers and low altitude comprehensive service platforms through its subsidiaries [3] - The strategic investment in Chenji Smart Satellite Technology aims to establish a foundation for the low orbit satellite market, with six core software products already launched [3] Group 4: Strategic Partnerships - The company has partnered with Hangzhou Shiji Group to establish a joint venture focused on low altitude governance, enhancing its capabilities in the low altitude economy [4] - The collaboration aims to create a leading low altitude comprehensive governance platform and expand various low altitude control application systems [4] - The company plans to leverage this partnership to accelerate the iteration and application of core low altitude technologies, contributing to high-quality development in the low altitude economy [4]

Group 1 - Yunnan Province government has issued measures to support the healthy development of the low-altitude economy, including the creation of new low-altitude cultural tourism formats and the issuance of 20 million yuan in consumption vouchers annually to support activities like skydiving, low-altitude sightseeing, drone performances, and flight experiences [1] - According to Yuekai Securities, the low-altitude economy industry chain involves manufacturing, services, and consumption, with a solid industrial chain foundation in China. The low-altitude economy index is expected to outperform the market in 2024, maintaining a relatively high level in the first half of 2025 [1] - The low-altitude manufacturing sector in China has advantages in drone technology and promising developments in eVTOL. Infrastructure construction is accelerating under dual support from central and local governments, while the application and operation phase is crucial for establishing benchmark scenarios and pilot projects, particularly in cultural tourism and logistics [1] Group 2 - Galaxy Securities anticipates that 2025 will be the year of commercial application for the low-altitude economy, with accelerated construction of air traffic management systems and takeoff/landing sites [2] - A rail transit control system company has a technical foundation for extending into low-altitude airspace management and has launched low-altitude products such as flight control computers and air traffic management systems since 2024, achieving a breakthrough in low-altitude business [2]

Group 1 - The low-altitude economy is expected to become a trillion-level new sector in the next 3-5 years, reshaping urban transportation, logistics, and tourism industries, with significant investment opportunities in the related industrial chain [1] - The Shenzhen government has introduced the first local special regulations on low-altitude economy, aiming to enhance infrastructure and service systems, with nearly 300 drone routes and over 1.7 million cargo flights completed [1][2] - The national policy support for low-altitude economy has been increasing, with projections indicating a market size of 1.5 trillion yuan by 2025 and 3.5 trillion yuan by 2035 [2] Group 2 - Companies are actively engaging in the low-altitude economy, with Deep City Transportation focusing on developing a new generation of urban transportation systems and expanding into various technological fields [2][3] - Changyi Technology has established a subsidiary for drone assembly and parts production, while companies like Aosheng Technology are innovating in solid-state battery materials, which have applications in low-altitude economy [3] - Analysts predict that 2025 will mark the year of large-scale operations in the low-altitude economy, with significant advancements in infrastructure and commercial applications [4]

Group 1 - Shenzhen has introduced the first local special regulations on low-altitude economy in China, aiming to enhance infrastructure and resource allocation for low-altitude flights [1] - The city has a leading position in the production of consumer and industrial drones, with nearly 300 drone routes opened and over 1.7 million cargo flights completed [1] - China Galaxy Securities predicts that 2025 will mark the year of commercial application for the low-altitude economy, with accelerated construction of air traffic management systems and takeoff/landing sites [1] Group 2 - Since 2024, the national government has been actively promoting the development of low-altitude economy, with policies at both the top and local levels driving improvements in planning [2] - The year 2025 is expected to transition low-altitude economy from planning to industrial implementation, contingent on a well-developed digital infrastructure [2] - There is a strong emphasis on achieving nationwide low-altitude communication and navigation system coverage by 2025, indicating urgent needs for large-scale construction [2]