Core Viewpoint - LiuGao Co., Ltd. has returned to profitability after three consecutive years of losses, achieving a net profit of 368 million yuan in the first half of 2025, a significant increase of 579.54% year-on-year, despite a decline in revenue [1][2][3] Financial Performance - In the first half of 2025, LiuGao Co., Ltd. reported operating revenue of 34.675 billion yuan, a year-on-year decrease of 8.32% [1] - The net profit for the same period was 368 million yuan, marking a substantial increase of 579.54% compared to the previous year [1] - The net cash flow from operating activities reached 1.629 billion yuan, reflecting an 85.15% year-on-year growth [1][3] Cost Control and Efficiency - The company implemented cost control measures, including reducing railway freight costs by over 10 million yuan and decreasing external maintenance costs by more than 15% [1] - LiuGao Co., Ltd. has focused on enhancing competitiveness by developing high-value-added products, launching 10 new products in the first half of 2025, with specialty steel accounting for 45.7% of total production [1] Investment and R&D - LiuGao Co., Ltd. invested 2.061 billion yuan in fixed assets in the first half of 2025, aimed at equipment upgrades and production line improvements [1] - The company has consistently invested over 1 billion yuan annually in R&D from 2019 to 2024, totaling 8.805 billion yuan over six and a half years [2] Sales and Revenue Structure - In the first half of 2025, the sales revenue from steel products was 31.66 billion yuan, accounting for 91.31% of total revenue [2] - Domestic sales revenue reached 33.22 billion yuan, representing 95.8% of total sales [2] Historical Context - LiuGao Co., Ltd. faced declining revenues and losses from 2022 to 2024, with revenues of 80.73 billion yuan, 79.66 billion yuan, and 70.13 billion yuan, reflecting year-on-year declines of 12.94%, 1.31%, and 11.97% respectively [2] - The net losses during this period were 2.342 billion yuan, 1.012 billion yuan, and 433 million yuan [2]