Core Viewpoint - Donghe New Materials (839792) reported a stable performance in its 2025 semi-annual report, with revenue of 321 million yuan and a net profit of approximately 31.99 million yuan, indicating a year-on-year growth of 1.21% in net profit and 13.48% in net profit after deducting non-recurring items, supported by a robust circular economy model and growth in new energy and industry chain extension [2][3]. Financial Performance - The company experienced a decline in revenue during the reporting period, yet profits increased, highlighting the stability of its main business operations [3]. - The comprehensive gross profit margin rose to 27.18%, up 1.66 percentage points from 25.52% in the same period last year, primarily due to an increase in the selling price of light-burned magnesium oxide and a decrease in coal prices, which lowered production costs [3]. - As of the end of the reporting period, total assets reached 1.778 billion yuan (a year-on-year increase of 10.17%), and net assets attributable to the parent company were approximately 999.6 million yuan (a year-on-year increase of 1.54%), driven by investment projects and technological upgrades [3]. Circular Economy Advantages - Donghe New Materials has established a unique advantage through its circular economy model, with its "Low-grade Dolomite Efficient Comprehensive Utilization Demonstration Project" recognized by the Ministry of Industry and Information Technology as one of the first tailings comprehensive utilization projects [4]. - The company holds a total of 49 patents, including 8 invention patents, covering the entire process of magnesium sand production, thereby reinforcing its technological barriers [4]. - The profit contribution rate of light-burned magnesium oxide exceeded that of the previous year, offsetting a decline in electric magnesium sales due to increased electricity costs and reduced purchases from downstream customers; revenue from tailings light-burned powder increased by 138.26% year-on-year, with a gross margin improvement of 11.64 percentage points [4]. Strategic Layout - The company has deepened its strategic layout by establishing several wholly-owned subsidiaries, including Liaoning Dongheng Talc Manufacturing and Liaoning Magnesium Research New Materials R&D, to extend its industrial chain [5]. - On July 31, the company acquired 51% of Anshan Fuyou Mining for 255.3 million yuan, enhancing its control over dolomite supply and mitigating the impact of raw material price fluctuations [6]. - Subsidiaries are performing steadily, with net profits of 17.21 million yuan from Haicheng Rongfu Refractory and 5.88 million yuan from Haicheng Donghe Teddy Furnace Materials, supporting the parent company's profits [6].