Core Viewpoint - Chengdu Leejun Industrial Co., Ltd. reported a decline in revenue and net profit for the first half of 2025, indicating challenges in both its grinding systems and aerospace components manufacturing businesses [2][4]. Financial Performance - The company's operating revenue for the first half of 2025 was approximately CNY 314.13 million, a decrease of 8.91% compared to CNY 344.84 million in the same period last year [2]. - Net profit attributable to shareholders was CNY 57.20 million, down 31.72% from CNY 83.78 million year-on-year [2]. - The net cash flow from operating activities was negative at CNY -84.92 million, a significant decline of 172.31% compared to CNY 117.45 million in the previous year [2][4]. Business Segments Grinding Systems and Equipment Manufacturing - Revenue from grinding systems and related equipment manufacturing was CNY 184.07 million, an increase of 9.96% from CNY 167.40 million in the previous year [4]. - The sales of roller presses and related equipment decreased by 42.39%, while high-pressure roller mills saw a 24.05% increase in sales [4][7]. - The demand for grinding equipment is driven by infrastructure construction and mining industries, with expectations for stable growth in the cement market [4][5]. Aerospace Components Manufacturing - Revenue from aerospace components manufacturing was CNY 130.66 million, a decline of 26.36% from CNY 177.44 million in the previous year [4][7]. - The decrease in revenue was attributed to reduced sales settlements for completed products in the aerospace sector [4][6]. - The aerospace industry is expected to grow due to increased defense modernization and expansion of the civil aviation market [4][6]. Competitive Advantages - The company has a robust R&D system and has been recognized as a high-tech enterprise in Sichuan, holding numerous patents and awards [5][6]. - The aerospace division has established a comprehensive manufacturing chain and is recognized for its technical capabilities and service offerings [6]. Market Outlook - The grinding equipment market is anticipated to benefit from ongoing urbanization and infrastructure investments, while the aerospace sector is poised for growth driven by national policies and market demand [4][6].

Core Viewpoint - The stock price of Lijun Co., Ltd. has surged significantly, with a notable increase of 91.67% over a period of six trading days, raising questions about the underlying reasons for this volatility [2][3]. Company Performance - In 2023, Lijun Co., Ltd. reported an operating revenue of 1.073 billion yuan, reflecting a year-on-year growth of 5.17%, while the net profit attributable to shareholders decreased by 44.06% to 123 million yuan [4]. - For 2024, the company anticipates a decline in both revenue and net profit, projecting an operating revenue of 776 million yuan and a net profit of 120 million yuan, representing year-on-year decreases of 27.63% and 2.28%, respectively [4]. - In the first quarter of 2025, the downward trend continued, with operating revenue of 175 million yuan, down 14.67% year-on-year, and a net profit of approximately 46.39 million yuan, a decrease of 17.80% [4]. Dividend Policy - Despite the declining performance, Lijun Co., Ltd. plans to distribute dividends of approximately 62.08 million yuan in 2024, which constitutes 51.63% of its net profit [4]. - The controlling shareholders, who are father and daughter, hold over 60.38% of the company's shares, indicating that they will receive a significant portion of the dividends, estimated to exceed 37.44 million yuan [4]. Market Context - The China Securities Military Industry Index experienced a notable increase of 5% from May 6 to May 12, with several stocks showing consecutive gains, although it has recently faced three consecutive days of decline [3].