Core Insights - Galaxy Microelectronics (688689.SH) reported a revenue of 477 million yuan for the first half of 2025, marking a year-on-year increase of 14.54% [1] - The net profit attributable to shareholders decreased to 27.22 million yuan, a decline of 21.87% year-on-year, while the net profit excluding non-recurring gains and losses fell by 19.91% to 17.69 million yuan [1] Revenue and Profit Analysis - The company maintained a growth trajectory in revenue, achieving 477 million yuan in the first half of 2025, which is a 14.54% increase compared to the previous year [1] - However, the net profit attributable to shareholders saw a significant decline of 21.87%, primarily due to increased competition and strategic adjustments leading to higher costs [1] Cost and Investment Factors - The profit decline is attributed to two main factors: intense external market competition affecting product pricing and profit margins, and internal strategic adjustments resulting in increased costs [1] - The company has made new investments in the optoelectronic devices and IGBT module sectors, including equipment purchases and personnel increases, which have led to a significant rise in fixed costs [1] Cash Flow and Operational Impact - The new projects are still in the capacity ramp-up phase and have not yet achieved economies of scale, which has directly impacted profit margins due to high cost allocation [1] - Additionally, the expansion in sales scale has resulted in increased employee compensation and higher cash payments for goods, leading to a 34.43% year-on-year decline in net cash flow from operating activities [1] Shareholder Activity - The Changzhou Yinjian Investment Management Center (Limited Partnership) conducted a reduction in holdings from March to June, cumulatively reducing 4.41 million shares, amounting to approximately 108 million yuan [1] - The company's chairman, Yang Senmao, serves as the executive partner of Yinjian Investment [1]