Core Viewpoint - The company is leveraging its established supply chain, product matrix, and technological reserves in automotive thermal management to explore applications in non-automotive sectors, specifically in data centers, communication cabinets, and energy storage [1] Group 1: Business Development - The company has achieved small-scale production of electronic water pumps, rubber hoses, and nylon pipes for liquid cooling applications in data centers and energy storage cabinets [1] - The board of directors has approved an investment of 50 million yuan to establish a wholly-owned subsidiary focused on the research, production, and sales of liquid cooling components and products for energy storage and servers [1] - The company aims to continuously explore new development directions to lay a foundation for long-term sustainable growth [1]

Investment Rating - The investment rating for the company is "Accumulate" [1] Core Views - The company reported a stable revenue growth of 9.05% year-on-year, achieving a revenue of 1.893 billion yuan in the first half of 2025 [2][3] - The gross profit margin decreased by 2.97 percentage points to 18.67%, indicating short-term pressure on profitability [4] - The company is accelerating its expansion into overseas markets, with overseas sales accounting for 24.41% of total revenue [5] - The company is actively exploring non-automotive thermal management applications, with small-scale production of liquid cooling products [7][8] - The company has adjusted its profit forecast for 2025-2027, expecting revenues of 4.534 billion, 5.363 billion, and 6.334 billion yuan, with corresponding net profits of 252 million, 301 million, and 360 million yuan [9] Summary by Sections Revenue and Profitability - In the first half of 2025, the company achieved a revenue of 1.893 billion yuan, with a year-on-year growth of 9.05%. The net profit attributable to the parent company was 91 million yuan, down 21% year-on-year [2][3] Gross Margin and Expenses - The gross profit margin for the first half of 2025 was 18.67%, a decrease of 2.97 percentage points compared to the previous year. The R&D expense ratio increased to 5.28%, reflecting the company's commitment to innovation [4] Market Expansion - The company achieved overseas sales of 462 million yuan, representing 24.41% of total revenue. The establishment of a factory in Poland is enhancing its presence in Europe [5] Product Development - The company is planning to build a 6,000 tons/year rubber mixing center and a 10 million meters/year air conditioning rubber hose project, expanding its product offerings [6] Non-Automotive Applications - The company is exploring thermal management applications in non-automotive fields, with small-scale production of liquid cooling products for data centers and energy storage cabinets [7][8] Financial Forecast - The company has revised its revenue and profit forecasts for 2025-2027, with expected revenues of 4.534 billion, 5.363 billion, and 6.334 billion yuan, and net profits of 252 million, 301 million, and 360 million yuan respectively [9]