Core Viewpoint - Company faces performance pressure in H1 2025, but future profitability is expected to improve with the production of ultra-high voltage cable materials [1][3] Group 1: Financial Performance - In H1 2025, the company reported revenue of 757 million yuan, a decrease of 0.46% year-on-year, and a net profit attributable to shareholders of 13.755 million yuan, down 63.94% year-on-year [1] - Q2 2025 revenue was 464 million yuan, an increase of 9.69% year-on-year and 57.80% quarter-on-quarter, with a net profit of 10.7085 million yuan, down 54.40% year-on-year but up 251.50% quarter-on-quarter [1] - The company has revised its profit forecasts for 2025-2026 and added a forecast for 2027, expecting net profits of 42 million (originally 91 million), 76 million (originally 115 million), and 100 million yuan for 2025-2027, respectively [1] Group 2: Market Dynamics - The company faced significant profit declines due to intensified industry competition and sluggish downstream demand, leading to an 11.85% drop in revenue from chemical cross-linked products [2] - Despite domestic challenges, the company achieved a 13.13% increase in overseas sales, generating 104 million yuan in revenue in H1 2025, with a gross margin of 13.72%, higher than the domestic gross margin of 6.33% [2] Group 3: Production Capacity and Technological Advancement - As of June 2025, the company has fully launched its fundraising projects, significantly increasing overall production capacity, including a 20,000-ton ultra-high voltage project, making it one of the few companies capable of mass production of high and ultra-high voltage cable materials [3] - The company has obtained type test reports for 110kV high voltage products and is progressing with the production and testing of 220kV products, aiming to reduce reliance on imported high-end specialty products and materials [3]