Core Viewpoint - Mingxin New Material Co., Ltd. reported a significant decline in net profit and total profit for the first half of 2025, attributed to decreased gross margins and increased depreciation costs, despite a rise in revenue from automotive interior materials [3][10]. Financial Performance - Revenue for the first half of 2025 reached approximately 602.83 million RMB, a 29.26% increase compared to 466.37 million RMB in the same period last year [3]. - Total profit decreased by 644.92%, resulting in a loss of approximately 34.22 million RMB, compared to a profit of 6.28 million RMB in the previous year [3]. - Net profit attributable to shareholders was approximately -29.39 million RMB, a decline of 393.49% from 10.01 million RMB [3]. - The company's net assets decreased by 1.14% to approximately 1.65 billion RMB, while total assets increased by 2.43% to approximately 3.62 billion RMB [3]. Business Overview - The company specializes in the research, development, and sales of new materials for automotive interiors, focusing on environmentally friendly production techniques [9]. - Products include genuine leather, suede-like microfiber, PU, and PVC materials, primarily used in various automotive interior applications [9][10]. - The company operates 13 subsidiaries and one branch, enhancing its responsiveness to customer needs through proximity to OEMs [9]. Industry Trends - The automotive market in China showed positive growth in the first half of 2025, with production and sales increasing by 12.5% and 11.4%, respectively [8]. - The demand for new energy vehicles continues to rise, contributing to industry transformation and growth [8]. - The company is positioned to benefit from ongoing policies supporting automotive consumption and the transition to new energy vehicles [8]. Strategic Initiatives - The company is expanding its product offerings to include innovative materials such as water-based PU leather and environmentally friendly PVC, aiming to cover a full range of product categories [10][11]. - A new subsidiary, Mingxin Zhiyuan, has been established to focus on the development of bionic electronic skin, leveraging the company's expertise in automotive functional materials [11]. - The company emphasizes sustainable development and has improved its ESG rating from A to AA, reflecting its commitment to environmental responsibility [12][17].