TSC(SZ:000877) Zheng Quan Zhi Xing·2025-08-19 23:20Core Insights - Tianshan Co., Ltd. reported a narrowing loss in its 2025 mid-year financial results, with significant goodwill on its balance sheet [1] - The company's total operating revenue decreased by 9.4% year-on-year to 35.98 billion yuan, while the net profit attributable to shareholders improved by 72.99% to -922 million yuan [1] Financial Performance - Total operating revenue for 2025 mid-year: 35.98 billion yuan, down 9.4% from 2024 [1] - Net profit attributable to shareholders: -922 million yuan, an improvement of 72.99% year-on-year [1] - Gross margin: 18.54%, up 62.74% year-on-year [1] - Net margin: -2.69%, an increase of 71.38% year-on-year [1] - Total expenses (selling, administrative, and financial): 5.724 billion yuan, accounting for 15.91% of revenue, up 1.76% year-on-year [1] - Earnings per share: -0.13 yuan, an increase of 67.11% year-on-year [1] Cash Flow and Debt - Net cash flow from financing activities decreased by 33.39% due to a decline in loan inflows [3] - Net increase in cash and cash equivalents rose by 59.23% due to increased net cash flow [4] - Investment income increased by 144.63% due to profits from joint ventures [5] - Interest-bearing liabilities rose by 3.67% to 122.604 billion yuan [1] Business Evaluation - The company's return on invested capital (ROIC) was 1.27%, indicating weak capital returns [8] - Historical data shows a median ROIC of 4.86% over the past decade, with three years of losses since its IPO [8] - The business model relies heavily on R&D and marketing, necessitating further investigation into these drivers [8] Fund Holdings - The largest fund holding Tianshan shares is the Guotai Zhongzheng All-Index Building Materials ETF, with 3.1391 million shares [9] - The fund's current scale is 502 million yuan, with a recent net value of 0.6431, reflecting a 0.31% decline from the previous trading day [9]