Core Viewpoint - China National Fisheries (中水渔业) reported a decrease in revenue but an increase in net profit for the first half of 2025, primarily due to substantial government subsidies [3][4][6]. Financial Performance - The company achieved revenue of 1.747 billion yuan, a year-on-year decline of 10.66%, while net profit attributable to shareholders was 86.31 million yuan, an increase of 22.12% compared to the previous year [4]. - In Q1, revenue was 846.3 million yuan, down 15.28%, with a net loss of 16.06 million yuan. In Q2, revenue was 901.1 million yuan, down 5.84%, with a net profit of 102.4 million yuan, up 2.19% [5]. Government Subsidies Impact - The company received government subsidies totaling 269 million yuan in the first half of the year, which significantly boosted profits, accounting for 302% of net profit [6]. - The subsidies included 252 million yuan related to income and 16.9 million yuan related to assets, indicating a heavy reliance on government support for financial performance [6]. Profitability and Margin Analysis - The overall gross margin for the company was 5.23%, which, while an improvement, remains low compared to industry peers [7][8]. - The gross margin for the core product, tuna, fell sharply to -15.38%, a decline of 21.1% year-on-year, significantly impacting overall profitability [10]. Business Segment Performance - The fishing business was the only segment to show revenue growth, achieving 739 million yuan, up 14.25%, with a gross margin of 5.15% [10]. - The retail and processing trade segment saw a revenue decline of 43.24%, while the fishery service segment's revenue decreased by 2.94% [11]. Investment Projects and Future Outlook - The company has invested heavily in tuna-related projects, including a tuna research and processing center and the renovation of fishing vessels, with expected completion dates pushed to 2025 [12][13]. - The tuna research and processing center aims to enhance product value and market position, but the delayed project completion raises concerns about future profitability [12][13].