Core Viewpoint - The company reported a decline in profits for the first half of 2025, primarily due to the global macroeconomic environment and falling storage prices, but showed signs of recovery in Q2 with improved revenue and gross margins [1][2]. Financial Performance - In H1 2025, the company achieved revenue of 3.912 billion yuan, a year-on-year increase of 13.70%, but reported a net loss of 226 million yuan, marking a shift from profit to loss [1]. - Q2 2025 revenue reached 2.369 billion yuan, reflecting a year-on-year growth of 38.20% and a quarter-on-quarter increase of 53.50% [1]. - The overall gross margin for H1 2025 was 9.07%, down 16.48 percentage points year-on-year, while the net margin was -6.17%, down 14.10 percentage points year-on-year [2]. Market and Product Development - The global storage market is gradually recovering, with a market size reaching $165.52 billion in 2024, a year-on-year increase of 79.3%, and is expected to exceed $302 billion by 2030 [4]. - The company is focusing on AI edge technology and has successfully mass-produced its self-developed main control chip, enhancing its competitive edge in various AI applications [3]. - The company is actively developing high-performance storage products for AI applications, including high-end DDR5 memory and PCIe 5.0 SSDs, to meet increasing demands for memory bandwidth and storage performance [3]. Strategic Positioning - The company is integrating storage solutions with advanced packaging technology, creating a differentiated competitive advantage through vertical integration [5]. - The company’s comprehensive product line includes embedded storage, solid-state drives, memory modules, and storage cards, covering major categories of NAND Flash and DRAM [6]. - The company aims to expand its market presence and achieve significant sales growth by collaborating with first-tier domestic and international clients [6].