AURORA(SH:600666) Zheng Quan Zhi Xing·2025-08-16 22:46Core Viewpoint - The recent financial report of Aorui De (600666) shows significant improvement in net profit and revenue, indicating a potential turnaround despite challenges in gross margin and cash flow [1]. Financial Performance - The total revenue for the first half of 2025 reached 219 million yuan, a year-on-year increase of 10.12% [1]. - The net profit attributable to shareholders was 61.39 million yuan, reflecting a substantial year-on-year increase of 1263.22% [1]. - In Q2 2025, the revenue was 121 million yuan, up 8.08% year-on-year, with a net profit of 69.73 million yuan, an increase of 547.1% [1]. Key Financial Metrics - The gross margin decreased to 9.61%, down 42.1% year-on-year, while the net margin improved to 26.92%, a significant increase of 884.27% [1]. - Total expenses (selling, administrative, and financial) amounted to 40.82 million yuan, accounting for 18.61% of revenue, a decrease of 27.08% year-on-year [1]. - Earnings per share rose to 0.02 yuan, a remarkable increase of 1284.21% year-on-year [1]. Balance Sheet Insights - Accounts receivable increased to 228 million yuan, representing 62.18% of total revenue, indicating a large volume of receivables [1]. - Cash and cash equivalents decreased to 143 million yuan, down 46.40% year-on-year [1]. - Interest-bearing debt reduced to 23.39 million yuan, a decrease of 34.14% [1]. Historical Context - The company has shown poor historical performance with a median ROIC of -7.94% over the past decade, and a particularly low ROIC of -48.58% in 2018 [3]. - The company has reported losses in 6 out of 32 annual reports since its listing, suggesting a challenging investment profile [3].