Core Viewpoint - Chongqing Qianli Technology Co., Ltd. has released its first semi-annual report after rebranding from Lifan Technology, showing significant revenue growth but a concerning decline in net profit due to increased R&D expenses and other factors [1][3]. Financial Performance - In the first half of 2025, Qianli Technology reported a revenue of 4.184 billion yuan, representing a year-on-year increase of 40.04% [3]. - The net profit attributable to shareholders was 31.17 million yuan, up 19.00% year-on-year [3]. - The total sales volume reached 38,728 vehicles, a substantial increase of 61.62% compared to the same period last year [4]. Profitability Concerns - The company's net profit after deducting non-recurring items was a loss of 130 million yuan, a dramatic decline of 903.91% year-on-year [4]. - The decline in profitability is attributed to increased R&D investments in smart automotive cockpit operating systems, higher asset impairment losses, and increased deferred tax expenses [4]. - R&D expenses for the first half of 2025 amounted to 288 million yuan, reflecting a year-on-year increase of 59.67% [4]. Company Strategy and Leadership - Since taking office in November 2024, Chairman Yin Qi has focused the company's development on the AI sector and initiated the rebranding from Lifan Technology to Qianli Technology [4]. - The company is currently in a transitional phase, facing significant cash burn as it invests in new technologies [4]. Financial Position - As of June 30, 2025, Qianli Technology's total assets were approximately 22.396 billion yuan, with total liabilities of about 10.834 billion yuan, resulting in a debt-to-asset ratio of approximately 48.37% [4]. - The debt-to-asset ratio has increased by 7.45 percentage points compared to the same period last year, indicating a rise in financial leverage [4].