ZGXT(SZ:000831) Zheng Quan Zhi Xing·2025-04-28 23:01Core Insights - The company has significantly improved its operating performance in Q1 2025, with total revenue reaching 728 million yuan, a year-on-year increase of 141.32%, and net profit attributable to shareholders at 72.62 million yuan, up 125.15% [1] Revenue and Profitability - The company's gross margin is 9.77%, reflecting a year-on-year increase of 126.85%, while the net margin stands at 9.99%, up 110.36%, indicating improvements in cost control and product value addition [2] Costs and Expenses - Despite the substantial growth in revenue and profit, total operating expenses (selling, administrative, and financial expenses) amounted to 17.81 million yuan, accounting for 2.45% of revenue, which is a decrease of 26.18% year-on-year, showcasing enhanced operational efficiency [3] Inventory and Accounts Receivable - The company's inventory has increased significantly, with a year-on-year growth of 35.29%, suggesting preparations for future sales but also raising concerns about potential inventory buildup. Additionally, accounts receivable rose from 149 million yuan to 216 million yuan, a 45.51% increase, indicating challenges in credit policy or collection efficiency [4] Cash Flow and Debt - The operating cash flow per share is -0.11 yuan, an improvement from -0.47 yuan in the same period last year, reflecting a 76.46% increase. Furthermore, interest-bearing debt has decreased from 101 million yuan to 24.44 million yuan, a reduction of 75.82%, demonstrating the company's efforts to lower its debt burden [5] Overall Summary - Overall, the company has shown outstanding performance in Q1 2025, with significant increases in total revenue and net profit, as well as improvements in gross and net margins. However, the rapid growth in inventory and accounts receivable warrants attention, particularly regarding the potential impact on cash flow [6]