DHCT(SH:600844) Zheng Quan Zhi Xing·2025-08-12 22:48Core Viewpoint - Jinmei Technology (600844) reported a significant increase in revenue and a reduction in net loss for the first half of 2025, indicating improved operational performance despite ongoing challenges in profitability [1][3]. Financial Performance - Total revenue for the first half of 2025 reached 473 million yuan, a year-on-year increase of 18.49% compared to 400 million yuan in the same period of 2024 [1]. - The net profit attributable to shareholders was -72.81 million yuan, showing a 34.89% improvement from -112 million yuan in the previous year [1]. - The gross margin improved significantly, with a year-on-year increase of 78.54%, resulting in a gross margin of -3.41% [1][3]. - The net margin also improved, with a year-on-year increase of 45.62%, leading to a net margin of -19.36% [1][3]. Cost and Expense Management - Total selling, administrative, and financial expenses amounted to 59.79 million yuan, accounting for 12.63% of revenue, a decrease of 28.19% year-on-year [1]. - Sales expenses decreased by 19.53% due to reduced personnel costs, while management expenses fell by 17.23% due to lower pollution and safety production fees [3]. Cash Flow and Assets - Cash flow from operating activities showed a significant increase of 121.22%, indicating improved cash generation from operations [3]. - The company's cash and cash equivalents increased by 12.99% to 28.90 million yuan, while accounts receivable decreased by 47.21% to 11.81 million yuan [1][3]. Investment and Returns - The company's historical return on invested capital (ROIC) has been poor, with a median ROIC of -12.24% over the past decade, and a particularly low ROIC of -47.68% in 2024 [4]. - The company has reported losses in 15 out of 31 annual reports since its listing, indicating a challenging investment profile [4]. Financial Health Indicators - The ratio of cash to current liabilities is only 4.88%, suggesting potential liquidity concerns [5]. - The average net cash flow from operating activities over the past three years has been negative, raising concerns about the company's financial sustainability [5].