Zheng Quan Zhi Xing·2025-08-20 22:23Core Viewpoint - Longyuan Power (001289) reported a decline in revenue and net profit for the first half of 2025, with total revenue of 15.657 billion yuan, down 18.61% year-on-year, and net profit attributable to shareholders of 3.375 billion yuan, down 13.79% year-on-year. However, the company's profitability improved, with an increase in gross margin and net margin [1][3]. Financial Performance - Total revenue for the first half of 2025 was 15.657 billion yuan, a decrease of 18.61% compared to 2024 [1]. - Net profit attributable to shareholders was 3.375 billion yuan, down 13.79% year-on-year [1]. - Gross margin increased to 40.87%, up 11.56% year-on-year, while net margin rose to 25.58%, an increase of 5.38% [1]. - Total expenses (selling, administrative, and financial) amounted to 1.922 billion yuan, accounting for 12.27% of revenue, which is a 25.16% increase year-on-year [1]. - Earnings per share decreased to 0.4 yuan, down 13.01% year-on-year [1]. Cash Flow and Debt - Cash flow from operating activities decreased by 8.49%, attributed to the absence of cash inflow from the thermal power segment and reduced renewable energy subsidies [3][4]. - The company’s net cash flow from investing activities increased by 11.69%, due to reduced capital expenditures on wind and solar projects compared to the previous year [3]. - The net cash flow from financing activities decreased by 11.71%, as cash received from borrowings fell more than cash used for debt repayment [4]. Business Evaluation - The company's return on invested capital (ROIC) was 5.46%, indicating average capital returns [7]. - The historical median ROIC since the company’s listing is 5.74%, suggesting that investment returns have been generally average [7]. - The company’s cash flow situation is concerning, with cash and cash equivalents only covering 4.3% of current liabilities [7]. - The debt situation is also notable, with interest-bearing debt to asset ratio reaching 52.74% [7]. Market Position - Longyuan Power's performance is influenced by its capital expenditures, which need careful evaluation to ensure they are yielding satisfactory returns [7]. - The company has seen a significant impact on revenue due to the disposal of its thermal power segment, which has affected both income and costs [3][4].