Group 1: Company Overview and Financial Performance - The company has undergone significant operational adjustments, including management team restructuring and halting production line expansions, to mitigate risks from the real estate market changes [2][3]. - In the first half of 2025, the company reported revenue of CNY 1.176 billion and a net loss of approximately CNY 84 million, primarily due to increased credit impairment losses and deferred tax expenses [3]. - The convertible bond balance has decreased from CNY 1.45 billion to CNY 871 million, indicating a recovery in investor confidence [3]. Group 2: Revenue and Cost Management - Revenue decline was attributed to the contraction of engineering channels, while the distribution channel remains stable, accounting for 80% of total revenue, with a year-on-year increase in sales from the Euro Ceramics brand [3]. - The company has successfully implemented cost reduction strategies, maintaining a stable gross margin, with Euro Ceramics' gross margin improving by 3.79 percentage points compared to 2024 [3][5]. - Operating cash flow has remained positive, with inventory and accounts receivable decreasing, and financing cash flow net amount achieving a positive figure for the first time in three years [3]. Group 3: Strategic Initiatives and Market Expansion - The company is actively expanding its second industry while solidifying its core business [3]. - New materials business has seen over 100% growth in the first half of 2025, particularly in overseas markets such as Russia and Central Asia [6]. - The company is enhancing its product offerings, including the development of lightweight curtain wall tiles, to cover a broader range of construction needs [7]. Group 4: Organizational Structure and Management - The company has restructured its organization to focus on three main business units: ceramics, sanitary ware, and new materials, enhancing control over these segments [8]. - A strategic and business development department has been established to improve overall operational efficiency and risk management capabilities [8]. Group 5: Marketing and Sales Strategies - The company has adopted a channel penetration strategy to expand its market presence in lower-tier cities, aiming to fill market gaps and enhance sales through targeted marketing efforts [10][11]. - The company is focusing on high-end market positioning for its sanitary ware products and is gradually expanding its custom home solutions business [9].