Revenue and Profit - The total operating revenue of the company for the first half of 2025 was 535 million yuan, an increase of 4.53% year-on-year [2] - The net profit attributable to shareholders was 37.56 million yuan, up 5.94% year-on-year, while the net profit after deducting non-recurring gains and losses was 34.09 million yuan, down 1.39% year-on-year [2] - In Q2 2025, the operating revenue was 283 million yuan, a year-on-year increase of 4.41%, and the net profit attributable to shareholders was 20.43 million yuan, up 1.84% year-on-year [2] Financial Indicators - The accounts receivable amounted to 383 million yuan, which is 694.2% of the latest annual net profit [4] - The net cash flow from operating activities was -0.17 yuan, a decrease of 352.95% year-on-year, indicating significant pressure on cash flow management [4] - The gross profit margin was 17.13%, a decrease of 8.06% year-on-year, while the net profit margin was 7.02%, an increase of 1.35% year-on-year [9] Main Business Composition - The main source of revenue comes from steel balls and rollers, with steel ball revenue at 455 million yuan, accounting for 85% of total revenue, and a gross margin of 16.45% [5] - Roller revenue was 70.91 million yuan, accounting for 13.25% of total revenue, with a gross margin of 18.95% [5] Operational Review - The company is a leading enterprise in the field of precision bearing rolling elements, focusing on R&D, production, and sales [6] - Despite revenue and net profit growth, the decline in net profit after deducting non-recurring items and issues with cash flow and accounts receivable are notable challenges [6] Development Overview - The company possesses internationally advanced technology and a complete set of core technologies and production processes, with product performance exceeding international standards [7] - The company has implemented intelligent single-machine operations and automated production lines, ensuring traceability of product quality [7] Financial Analysis Summary - Overall, the company showed certain revenue growth in the 2025 mid-term report but faces challenges in cash flow management and accounts receivable [8]

Core Viewpoint - Lixing Co., Ltd. has decided to terminate the planned acquisition of Qingdao Feiyan Lingang Precision Steel Ball Manufacturing Co., Ltd. due to the inability to reach an agreement on relevant terms within the stipulated time frame, prioritizing the interests of the company and its shareholders [1][3]. Group 1: Acquisition Details - The acquisition was initially announced in late March, with Lixing intending to acquire a controlling stake in Feiyan Steel Ball for cash [1]. - Feiyan Steel Ball, established in 2004, specializes in the research and manufacturing of precision steel balls ranging from ∮0.5 to ∮12.7mm, with significant applications in automotive, aerospace, and precision machinery sectors [3]. - Feiyan Steel Ball holds over 90% market share in the commercial vehicle and heavy truck sectors in China, supplying international brands such as Jeep and Ford [3]. Group 2: Company Performance - Lixing Co., Ltd. operates in the general equipment manufacturing industry, focusing on the research, production, and sales of precision bearing rolling elements, including precision bearing steel balls and ceramic balls [3]. - The company has experienced a decline in net profit for three consecutive years, with revenues of 974 million, 981 million, 1.002 billion, and 1.045 billion yuan from 2021 to 2024, and net profits of 90 million, 62 million, 60 million, and 55 million yuan during the same period [5]. - In the first quarter of 2025, Lixing reported total revenue of 252 million yuan, a year-on-year increase of 4.66%, and a net profit of 17.13 million yuan, reflecting an 11.28% increase [5].