Core Viewpoint - The impact of "decluttering" in 2024 continues to affect Jifeng Co., Ltd. (603997.SH), with a year-on-year revenue decline of 4.39% in the first half of the year due to the sale of the US TMD company [1] Financial Performance - The company reported a net profit of 1.54 billion yuan in the first half of the year, an increase of 189.51% compared to the same period last year [1] - The non-recurring net profit attributable to the parent company reached 1.89 billion yuan, a year-on-year increase of 598.63% [1] - The sale of TMD resulted in a loss of 5.67 billion yuan for the company in 2024 [1] Segment Performance - The Jifeng segment achieved revenue of 3.104 billion yuan in the first half, a year-on-year growth of 24.97%, primarily driven by the rapid development of strategic emerging businesses centered on passenger car seat operations [1] - The net profit for the Jifeng segment was 1.16 billion yuan, reflecting a year-on-year increase of 19.68% [1] - The strategic emerging business reported significant achievements, with passenger car seat revenue doubling to 1.984 billion yuan, air outlet business revenue of 136 million yuan, and vehicle-mounted refrigerator revenue of approximately 77 million yuan, which saw multiple-fold growth year-on-year [1] Operational Developments - Despite an increase in orders and ongoing projects, the passenger car seat business reported a net loss of 630 million yuan in the first half, compared to a loss of 230 million yuan in the same period last year [2] - R&D investment increased by 42.26% year-on-year due to the rise in business volume [2] - The company expanded its passenger car seat production capacity with new bases in multiple cities, including Hefei, Changzhou, Wuhu, Fuzhou, Yiwu, Tianjin, and Changchun, all of which were completed and put into operation as planned [2] - The company is also collaborating with Grammer to advance the global layout of the seat business, with a Southeast Asia seat base already in operation and a European seat base under construction [2]

Core Points - The global trade focus is on the critical negotiations between the US and EU, with a deadline approaching for potential tariffs on EU goods [1][2] - If no agreement is reached by July 9, EU exports to the US could face tariffs up to 50%, while previously suspended retaliatory measures from the EU may also be activated [1] - The US-EU trade relationship is significant, accounting for 30% of global goods trade, with a projected total trade of €1.68 trillion (approximately $1.98 trillion) in 2024 [1] Trade Balance - The EU maintains a trade surplus of €198 billion in goods but faces a service trade deficit of €148 billion, resulting in an overall net surplus of approximately €50 billion [1] - The Trump administration has criticized the trade relationship as "unfair," claiming that the EU benefits at the expense of the US [1] Negotiation Dynamics - Current negotiations are cautious, with EU Commission President von der Leyen stating that a detailed agreement is unlikely within the 90-day grace period, aiming instead for a "principle agreement" [2] - US Treasury Secretary Mnuchin has a more conservative outlook on reaching an agreement before the deadline, indicating a wait-and-see approach [2] - Experts believe the likelihood of a comprehensive agreement in the short term is low, with potential outcomes resembling the US-UK trade agreement, focusing on basic terms rather than extensive details [2] Future Considerations - The EU's retaliatory measures will closely follow US actions, with analysts suggesting that unless comprehensive tariffs are implemented by Trump, the EU will refrain from countermeasures [2] - Even if a broad framework agreement is reached, there may still be risks of policy reversals from the US, indicating that negotiations will remain contentious [2]