Lingda Group(SZ:300125) Zheng Quan Zhi Xing·2025-07-21 16:32Core Viewpoint - The company is facing significant challenges in its main business of photovoltaic solar cells due to a downward trend in the photovoltaic industry chain prices, leading to a halt in production and termination of expansion projects [2][3][10]. Business Overview - The company's main business is related to the photovoltaic industry chain, with over 90% of its revenue previously coming from its subsidiary, JY New Energy, which specializes in high-efficiency crystalline silicon solar cells [2]. - The production line of JY New Energy was temporarily halted on March 14, 2024, and there is little chance of resuming operations in the short to medium term due to market conditions [2][10]. - The company has decided to terminate the second phase of the JY New Energy project, which involved a 5.0GW high-efficiency solar cell production line, due to high capital requirements and current financial conditions [2][3]. Financial Performance - For the first half of 2025, the company reported a revenue of approximately 59.93 million yuan, a 72.39% increase compared to the same period last year [5][18]. - The net profit attributable to shareholders was approximately -104.83 million yuan, showing a 37.56% improvement year-on-year [5][18]. - The company’s total assets decreased by 6.06% to approximately 940.70 million yuan, while the net assets attributable to shareholders were -642.30 million yuan, a 19.50% decline [5][18]. Key Business Segments - The company operates in three main segments: EPC (Engineering, Procurement, and Construction) services, photovoltaic power generation, and high-efficiency solar cell production [8][10][11]. - The EPC business has shown growth, contributing significantly to the overall revenue, while the solar cell segment has faced a complete halt in production [10][11][18]. - The photovoltaic power generation segment, operated by its subsidiary, has generated revenue through the sale of electricity from a 53MW grid-connected solar power station [9][19]. Operational Challenges - The company has been impacted by a significant increase in credit impairment losses and asset impairment losses, indicating financial strain and operational challenges [18]. - The management has implemented cost control measures, including reducing sales and management expenses, due to the suspension of the solar cell production line [18][19]. - The company has also faced a decline in research and development expenses, which dropped to zero due to the halt in solar cell production [18].