Core Viewpoint - The company held a semi-annual performance briefing for 2025, addressing various investor inquiries regarding operational costs, business transformation, and future growth opportunities. Group 1: Operational Efficiency - The company's operational costs decreased by 15% year-on-year, attributed to a decline in raw material prices and the implementation of a digital supply chain management system, which significantly aids in cost control [1] - The gross profit margin for the railway power automation system business increased by 2.8 percentage points compared to the same period last year, achieved through the promotion of new technologies and project budget management [6] Group 2: Industry Challenges and Strategic Direction - The company is facing intense competition in the rail transit industry, with declining profit margins and stagnant development. Investors suggested leveraging the national push for artificial intelligence to develop new power supply products [2] - The domestic localization rate requirement in the rail transit industry is set to increase from 75% to 85%. The company aims for self-controllable systems as a key research and development goal, indicating no current risks related to critical technologies or core components [3] Group 3: Research and Development - Research and development investment saw a significant increase in the first half of 2025, focusing on technologies aligned with the national "14th Five-Year" intelligent transportation policy [9] - The company is actively exploring new profit growth points in smart grids and green energy, aiming to establish new revenue streams this year [10] Group 4: Market Position and Future Outlook - The revenue share from urban rail transit power supply business rose to 35% in the first half of the year, with the company stating that market expansion and services are not regionally restricted [8] - The intelligent operation and maintenance market for rail transit is expected to exceed 50 billion yuan by 2026, with the company's developed smart operation and maintenance system already applied in multiple lines [13] Group 5: Financial Performance and Management - Despite revenue growth, the company's performance significantly declined due to increased management, sales expenses, and R&D investments, with cost growth outpacing revenue growth [14] - The company utilizes bill settlement to enhance capital efficiency and returns, maintaining a complete product system and sustainable competitive advantages [15]

Group 1: Financial Performance - The company's operating costs decreased by 15% year-on-year, attributed to the implementation of a digital supply chain management system [2][3] - The gross margin of the railway power supply automation business increased by 2.8 percentage points compared to the same period last year, benefiting from cost control and enhanced product value [4] - The net cash flow increased by 40% year-on-year, indicating operational improvements [9] Group 2: Market Position and Strategy - The company is focusing on transitioning from a rail transit equipment manufacturer to a power supply service provider, aiming to leverage existing technology and product experience [6][11] - The urban rail transit power supply business revenue share rose to 35%, driven by regional projects like the Tianjin Metro Phase III [8] - The company plans to explore new profit growth points in smart grids and green energy, aligning with national strategic directions [6][11] Group 3: Research and Development - R&D investment in the first half of 2025 saw significant growth, focusing on technologies that resonate with the national "14th Five-Year" smart transportation plan [5][6] - The company maintains a stable R&D personnel ratio of over 30%, emphasizing talent cultivation and retention in a competitive environment [10] Group 4: Industry Trends and Challenges - The rail transit industry is experiencing a shift towards smart and green transformation, prompting the company to enhance its R&D capabilities and align with national strategies [7][11] - Despite revenue growth, net profit declined due to increased management and sales expenses, as well as higher R&D investments [10]