NSWRC(SH:600165) Zheng Quan Zhi Xing·2025-08-16 22:46Core Viewpoint - ST Ningke reported a significant increase in revenue and a reduction in losses for the first half of 2025, indicating potential recovery despite ongoing challenges in profitability [1]. Financial Performance - Total revenue for the first half of 2025 reached 216 million yuan, a year-on-year increase of 89.95% [1]. - The net profit attributable to shareholders was -171 million yuan, showing a 59.76% improvement compared to the previous year [1]. - In Q2 2025, total revenue was 122 million yuan, up 104.31% year-on-year, while the net profit attributable to shareholders was -107 million yuan, an increase of 71.37% year-on-year [1]. Profitability Metrics - Gross margin was -25.36%, a decrease of 140.33% year-on-year [1]. - Net margin was -87.93%, reflecting a 77.35% improvement year-on-year [1]. - Total selling, administrative, and financial expenses amounted to 45.37 million yuan, accounting for 21.05% of revenue, a decrease of 77.3% year-on-year [1]. Balance Sheet Highlights - Cash and cash equivalents increased significantly to 76.63 million yuan, a rise of 625.97% year-on-year [1]. - Accounts receivable rose to 103 million yuan, up 214.63% year-on-year [1]. - Interest-bearing debt decreased to 4.81 billion yuan, down 66.12% year-on-year [1]. Shareholder Metrics - Earnings per share improved to -0.25 yuan, a 59.68% increase year-on-year [1]. - Net asset value per share was -0.14 yuan, reflecting a 72.74% increase year-on-year [1]. - Operating cash flow per share was -0.28 yuan, a significant decrease of 1728.86% year-on-year [1]. Historical Context - The company has shown poor historical performance with a median ROIC of -2.62% over the past decade, and the worst year being 2024 with a ROIC of -49.04% [3]. - The company has reported losses in 10 out of 26 annual reports since its listing, indicating a challenging investment profile [3]. Cash Flow and Debt Concerns - The cash flow situation is concerning, with cash and cash equivalents to current liabilities ratio at only 6.54% [3]. - The company has a high interest-bearing debt ratio of 20.76%, and the average operating cash flow over the past three years has been negative [3]. - Accounts receivable issues persist, with negative net profit attributable to shareholders in annual reports [3].