Core Viewpoint - China XD Electric reported a steady growth in its operating performance for the first half of 2025, with significant increases in revenue and net profit, indicating a positive trend in the company's financial health [1][3]. Financial Performance - The company achieved an operating revenue of 11.33 billion yuan, representing a year-on-year growth of 8.91% [1]. - The net profit attributable to shareholders reached 598 million yuan, showing a substantial year-on-year increase of 30.08% [1]. - The net profit margin improved from 5.51% in the first half of 2024 to 6.55% in 2025, while the gross profit margin rose from 18.93% to 21.61% [3]. - The return on equity (ROE) was recorded at 2.68%, an increase of 0.61 percentage points year-on-year, reflecting ongoing improvements in profitability [3]. Operational Challenges - The inventory turnover days increased to 98.73 days, up 18.88% compared to the same period last year, indicating a decline in inventory management efficiency [5]. - The net cash flow from operating activities turned negative at -29 million yuan, a significant drop from 669 million yuan in the same period of 2024, suggesting pressure on short-term cash flow [5]. - The debt-to-asset ratio for the first half of 2025 was 46.47%, an increase of 2.48 percentage points year-on-year, indicating a rise in the company's debt level [5]. Institutional Holdings - As of the first half of 2025, only 2 institutions held shares in China XD Electric, a sharp decline from 345 institutions in the same period of 2024, reflecting a notable decrease in institutional investor interest [7]. - The company's market capitalization peaked at 73.76 billion yuan on June 15, 2015, and currently stands at 34.395 billion yuan, requiring a 114.46% increase in stock price to reach its historical high [7].