Huabao Limited(SZ:300741) Xin Lang Zheng Quan·2025-08-19 09:59Core Viewpoint - The leading domestic flavor company Huabao Co., Ltd. has reported a significant decline in its operating performance for the first half of 2025, with revenue and net profit experiencing steep drops, indicating a collapse in its profitability system [1] Financial Performance - The company's operating revenue for the first half of the year was 606 million yuan, a year-on-year decrease of 8.41% [1] - The net profit attributable to shareholders plummeted to 13.42 million yuan, down 87.95% year-on-year, marking the largest decline since its listing [1] - Earnings per share fell sharply from 0.18 yuan in the same period last year to 0.02 yuan, indicating a near exhaustion of investor returns [1] Profitability Indicators - Key profitability metrics have all declined, with the net profit margin dropping from 17.28% in the first half of 2024 to 2.95% [1] - The gross profit margin decreased from 53.93% to 47.78% [1] - The weighted average return on equity fell to 0.20%, reaching historical lows and continuing a six-year downward trend [1] - The period expense ratio increased to 42.98%, with selling expenses rising by 16.35% to 68.36 million yuan and management expenses surging by 24.77% to 161 million yuan, further eroding profit margins [1] Business Structure Challenges - The main product category, edible flavors, which accounts for 63% of revenue, saw a sharp decline of 22.54% [1] - Although food ingredients and daily-use flavors grew by 4.80% and 34.47% respectively, these increases were insufficient to offset the overall revenue decline [1] - The net cash flow from operating activities shrank by 24.21% to 79.99 million yuan [1]