Core Viewpoint - The report highlights a significant decline in revenue and net profit for China First Heavy Industries Co., Ltd. in the first half of 2025, indicating challenges in the operating environment and a strategic focus on core business areas [1][2]. Company Overview and Financial Indicators - The company reported a total revenue of approximately CNY 4.68 billion for the first half of 2025, a decrease of 46.24% compared to the same period last year [2]. - The total profit for the period was approximately CNY 88.19 million, showing a significant increase of 158.61% year-on-year [2]. - The net profit attributable to shareholders was approximately -CNY 105.64 million, a decrease of 38.97% compared to the previous year [2]. - The total assets of the company at the end of the reporting period were approximately CNY 39.97 billion, down 4.53% from the end of the previous year [2]. Business Operations and Analysis - The company has focused on its core competencies, leading to a strategic exit from non-core operations, which contributed to the decline in revenue [5]. - The operating costs decreased by 50.97% to approximately CNY 40.03 billion, attributed to the reduction in revenue and cost-cutting measures [5]. - Research and development expenses increased by 19.28% to approximately CNY 155.58 million, reflecting the company's commitment to innovation [5]. Future Plans and Strategic Focus - The company aims to stabilize its operations and achieve profit targets for the year, with plans to expand market reach and enhance service quality [4]. - There is a focus on improving quality control and reducing non-production costs to enhance overall efficiency [4]. - The company is also investing in digital transformation and modernization of its manufacturing processes to strengthen its competitive position [4][5]. Key Financial Metrics - Basic earnings per share for the reporting period were -CNY 0.0154, a decrease of 38.89% year-on-year [2]. - The weighted average return on equity improved by 1.4684 percentage points to -0.0199% [2]. - The net cash flow from operating activities was -CNY 421.73 million, a reduction in outflow of 8.34% compared to the previous year [5].