Shen Wan Hongyuan released a research report saying that the 26Q2 A-share profit growth rate rebounded to 20%, and revenue only increased 6.8%. Profit elasticity mainly comes from non-recurring profits and losses such as investment income. Exchange rate fluctuations drive up financial expenses, but gross margin and ROE continue to improve, and prices are better than volume. The profit and ROE of the GEM and the Science and Technology Innovation Board increased significantly, which is superior to the main board. Demand for inventory replenishment is beginning to emerge, capital expenditure is operating at a low level, the cash flow structure has improved, and dividend repurchases have increased. We need to be wary of global economic, trade and geographical risks.

Shen Wan Hongyuan released a research report saying that the 26Q2 A-share profit growth rate rebounded to 20%, and revenue only increased 6.8%. Profit elasticity mainly comes from non-recurring profits and losses such as investment income. Exchange rate fluctuations drive up financial expenses, but gross margin and ROE continue to improve, and prices are better than volume. The profit and ROE of the GEM and the Science and Technology Innovation Board increased significantly, which is superior to the main board. Demand for inventory replenishment is beginning to emerge, capital expenditure is operating at a low level, the cash flow structure has improved, and dividend repurchases have increased. We need to be wary of global economic, trade and geographical risks.