Core Viewpoint - Hualing Precision Technology Co., Ltd. has experienced a significant decline in revenue and profit in the first half of the year, prompting concerns about its future strategic adjustments and operational performance [2][3][4]. Financial Performance - In the first half of the year, Hualing Precision reported a revenue of 445 million yuan, a year-on-year decrease of 20.48%, primarily due to a decline in market orders and sales prices [3]. - The net profit attributable to shareholders was -46.11 million yuan, a decrease of 17.39% year-on-year, while the net profit excluding non-recurring items was -46.29 million yuan, down 20.32% [3][4]. - The company's operating cash flow was -48.38 million yuan, although this was an improvement from -76.20 million yuan in the same period last year [4]. Market Conditions - The elevator parts industry is facing increased competition and a slowdown in demand, particularly influenced by the downturn in the real estate market [3][4]. - Hualing Precision's revenue from elevator parts was 380 million yuan, which constitutes its primary revenue source [3]. Strategic Adjustments - The company plans to actively seek new business opportunities and markets while reducing external investments and optimizing idle assets to enhance competitiveness and profitability [2][4]. - Hualing Precision aims to expand into new energy sectors, including wind power components and photovoltaic support structures, to find new growth points [5][6]. Recent Developments - The company recently terminated its planned private placement and control change, which was influenced by changes in the capital market environment and internal strategic considerations [6][7]. - The termination of the private placement means that the proposed acquisition of control by a specific partner will not proceed, maintaining the current control structure [7].