Core Viewpoint - The company reported disappointing financial results for the first half of 2017, with significant declines in both revenue and net profit due to various operational challenges [1] Financial Performance - Revenue for 1H17 declined by 45% year-on-year to Rmb930 million [1] - Net profit fell by 87.5% year-on-year to Rmb26 million [1] - Gross profit margin (GPM) remained flat at 26.1% [1] Contributing Factors - The decline in revenue was primarily attributed to the China Railway Corporation postponing purchases of railway maintenance machines, leading to a significant drop in machines sold during 1H17 [1] - Research and development costs increased by Rmb20 million during the period [1] - Finance costs rose by Rmb35 million due to higher interest on discounted long-term trade receivables [1]