Core Insights - The company reported a strong financial performance for the first half of 2025, with revenue reaching 8.494 billion yuan, a year-on-year increase of 56.59%, and a net profit attributable to shareholders of 1.683 billion yuan, up 47.5% [1] Financial Performance - Revenue of 8.494 billion yuan grew by 56.59% year-on-year, driven by the explosive demand in artificial intelligence and high-speed network infrastructure [1] - Net profit attributable to shareholders was 1.683 billion yuan, reflecting a 47.5% increase compared to the previous year [1] - Operating cash flow was robust, with a net amount of 2.097 billion yuan, representing a 75.67% year-on-year growth [4] Business Segments - The enterprise communication market segment generated revenue of 65.32 billion yuan, a 70.63% increase year-on-year, accounting for 76.9% of total revenue [1] - High-speed network switches and related PCB products were the fastest-growing segment, with a year-on-year growth of 161.46%, making up 53% of the enterprise communication market revenue [2] - AI servers and HPC-related PCB products grew by 25.34%, contributing approximately 23.13% to the enterprise communication market revenue [2] Profitability Challenges - The PCB business's gross margin was 36.46%, down 1.49 percentage points year-on-year, primarily due to increased stock incentive costs and losses from the Thailand factory [3] - The Thailand factory reported a loss of approximately 96 million yuan during the reporting period, attributed to high labor, depreciation, and utility costs [3] Operational Risks - Inventory impairment losses increased significantly to 190 million yuan, up about 28.8% year-on-year, indicating inventory management pressures [4] - The provision for bad debts on accounts receivable was 823 million yuan, a substantial increase, raising concerns about customer credit risk [4] Strategic Initiatives - The company is undertaking a large-scale capacity expansion project with a total investment of approximately 4.3 billion yuan, expected to start trial production in the second half of 2026 [6] - The company is also focusing on technological upgrades, with ongoing collaborations with leading companies to develop high-speed products [6] - The automotive PCB business achieved revenue of 1.422 billion yuan, growing by 24.18%, with an increasing share of emerging automotive products [6]