Core Viewpoint - The company, Jingzhu Technology, is facing short-term pressure on its performance for the first half of 2025, but opportunities for growth are emerging through humanoid robots and international expansion [1][2]. Financial Performance - In the first half of 2025, the company achieved revenue of 987 million yuan, a year-on-year decrease of 2.0% - The net profit attributable to shareholders was 61 million yuan, down 35.2% year-on-year, while the net profit excluding non-recurring items was 45 million yuan, a decline of 40.63% year-on-year [2]. - For Q2 2025, revenue was 474 million yuan, with year-on-year and quarter-on-quarter declines of 5.75% and 7.42% respectively - The net profit attributable to shareholders for Q2 was 20 million yuan, down 56.22% year-on-year and 49.20% quarter-on-quarter [2]. Profitability Metrics - The net profit margin for the first half of 2025 was 6.1%, a decrease of 3.2 percentage points year-on-year - The gross profit margin was 24.52%, an increase of 0.1 percentage points year-on-year [2]. - In Q2 2025, the net profit margin was 4.30%, down 4.96 percentage points year-on-year, while the gross profit margin was 24.78%, up 0.50 percentage points year-on-year [2]. Expense Ratios - The expense ratio for the first half of 2025 was 17.1%, an increase of 0.62 percentage points year-on-year - The breakdown of expense ratios includes sales at 0.5%, management at 7.9%, financial at 2.3%, and R&D at 6.3% [2]. Product Segment Performance - Revenue from gear shaft products was 725 million yuan, down 1.26% year-on-year, with a gross margin of 22.67%, down 1.13 percentage points year-on-year - Revenue from assembly products was 223 million yuan, down 3.84% year-on-year, with a gross margin of 24.49%, down 0.34 percentage points year-on-year [2]. Strategic Developments - The company is advancing its global expansion with the imminent production of its factory in Thailand, having delivered the first batch of samples and completed some overseas client audits, with initial ramp-up expected in Q3 [3]. - The establishment of a subsidiary in France aims to enhance market penetration in that region [3]. - The company is also progressing in the development of robotic reducers, with samples expected by November 2024, and has formed a joint venture with a well-known industrial robot brand [3]. Dividend Distribution - The company plans to distribute a cash dividend of 0.35 yuan per 10 shares (before tax), totaling 20.15 million yuan, which represents 33.25% of the net profit attributable to shareholders for the first half of 2025 [3]. Earnings Forecast and Investment Rating - Due to intense industry competition and a decline in performance, the company's net profit forecasts for 2025-2027 have been revised down to 189 million, 237 million, and 298 million yuan respectively [4]. - Despite the downward revision, the company maintains a "buy" rating due to upcoming production phases of new projects and the positive impact of the Thai factory and robotic reducer business on non-automotive operations [4].