Core Viewpoint - Huanxu Electronics reported a decline in revenue and net profit for the first half of 2025, reflecting challenges in its main business and the restructuring of its global supply chain [1][5]. Financial Performance - For the first half of 2025, Huanxu Electronics achieved total revenue of approximately 27.214 billion yuan, a year-on-year decrease of 0.63%, and a net profit attributable to shareholders of about 638 million yuan, down 18.66% [1]. - In Q1 2025, the company recorded total revenue of 13.649 billion yuan, a 1.16% increase year-on-year, with a net profit of 335 million yuan, a slight increase of 0.08% [2][3]. - The second quarter saw a significant drop in net profit, which was only 303 million yuan, representing a year-on-year decline of 32.6% [3]. Client Dependency and Risks - Huanxu Electronics heavily relies on Apple as its primary customer, which contributed 19.927 billion yuan in sales in 2022, accounting for 41.8% of total revenue. This dependency has led to risks as Apple reported a decline in consumer electronics demand [6][7]. - In 2024, Apple still accounted for 32% of Huanxu's total revenue, indicating ongoing reliance on a single client [6]. Business Segment Performance - Revenue from communication products was approximately 9.17 billion yuan, down 3.21% year-on-year, primarily due to delays in new product launches by clients [7]. - Revenue from consumer electronics increased by 8.60%, driven by market promotions from major clients [7]. - Automotive electronics revenue saw a significant decline of 16.04%, attributed to reduced outsourcing orders and demand from key clients [8]. Management and Strategic Uncertainty - The recent passing of a key board member, Rutherford Chang, has introduced uncertainty regarding the company's future strategy and management stability [9][12]. - The unexpected death of Chang, who was seen as a potential successor in the family business, raises concerns about the continuity of leadership during a critical period of supply chain restructuring and intensified industry competition [12].