Core Viewpoint - The report indicates a decline in revenue and net profit for Chuan Yi Co., with a focus on maintaining core business operations and enhancing technological innovation to navigate industry challenges [2][4]. Financial Performance - For the first half of 2025, Chuan Yi Co. reported revenue of 3.281 billion yuan, a decrease of 12.37% year-on-year, and a net profit of 325.6 million yuan, down 10.46% year-on-year. The net profit after deducting non-recurring items was 268.3 million yuan, reflecting a 14.66% decline [2][3]. - The company's R&D expenses amounted to 230.9 million yuan, representing 7.04% of total revenue [2]. Business Segments - The main business segments include: - Industrial automation control systems and engineering, accounting for 86.82% of revenue. - Electronic information functional materials and devices, contributing 12.43% to revenue [2]. - Revenue from industrial automation instruments and devices was 2.849 billion yuan, with a gross margin of 34.62%, showing a slight increase of 1.71 percentage points year-on-year [9]. Market Strategy - The company is focusing on enhancing marketing strategies by improving professional marketing and service teams, and expanding cooperation with major clients and projects. New orders decreased by 9% year-on-year, but specific markets like nuclear power and water resources saw significant growth in new orders [6][7]. - Chuan Yi Co. is actively exploring new industries and markets, including smart execution products in irrigation and drinking water projects, and has secured orders in the nuclear power sector [7]. Innovation and Development - The company is accelerating innovation by increasing R&D investments and upgrading core products. It aims to align with international standards and enhance product reliability and applicability in special conditions [4]. - Chuan Yi Co. has made progress in digital transformation and lean management, establishing multiple smart production lines and digital workshops to improve operational efficiency [8].

Core Insights - The company reported a revenue of 3.281 billion and a net profit of 325 million for the first half of 2025, with a basic earnings per share of 0.63 [1] - The company faced challenges such as insufficient domestic demand and intensified market competition but focused on core business, technological innovation, and market expansion [1] - The company achieved a significant increase in new orders in various sectors, with growth rates ranging from 38% to 64% [1] Financial Performance - The company achieved an operating income of 3.281 billion and a net profit attributable to shareholders of 325 million in the first half of 2025 [1] - The non-recurring net profit was reported at 268 million, indicating a solid financial performance despite external challenges [1] Market Strategy - The company focused on large clients and projects, actively exploring new markets and fields, particularly in nuclear power, fine chemicals, non-ferrous metals, and water resources [1] - The company emphasized the "Belt and Road" initiative, enhancing cooperation with overseas agents in regions such as the Middle East, Central Asia, and Southeast Asia [1] Technological Advancements - The company has made significant strides in domestic technology replacement, successfully applying the H400 control valve in the metallurgical industry and delivering the first domestically produced "Hualong One" turbine bypass valve [2] - The company has developed high-end applications and new fields, achieving breakthroughs in various technologies, including multi-turn DC electric actuators and high-temperature ultrasonic flow meters [2] Research and Development - The company invested 230 million in R&D, accounting for over 7% of its operating income, and is currently involved in 20 national and provincial projects [3] - The company has obtained 74 new patents, including 16 invention patents, and has a total of 1,158 effective patents, demonstrating a strong commitment to innovation [3]