Zodi Investment(SZ:000609) Zheng Quan Zhi Xing·2025-08-20 22:41Core Viewpoint - ST Zhongdi (000609) reported a significant decline in financial performance for the first half of 2025, with total revenue dropping by 52.39% year-on-year and a net loss of 84.84 million yuan, indicating ongoing operational challenges and increased financial burdens [1] Financial Performance Summary - Total revenue for the reporting period was 134 million yuan, a decrease of 52.39% year-on-year [1] - Net profit attributable to shareholders was -84.84 million yuan, down 13.53% year-on-year [1] - Gross margin was 0.1%, a decline of 89.85% year-on-year, while net margin was -63.36%, down 138.48% year-on-year [1] - Total expenses (selling, administrative, and financial) reached 80.62 million yuan, accounting for 60.21% of total revenue, an increase of 160.28% year-on-year [1] - Earnings per share were -0.28 yuan, a decrease of 12.0% year-on-year [1] Changes in Financial Items - Contract liabilities decreased by 18.93% due to the completion and delivery of certain projects, leading to revenue recognition [2] - Long-term borrowings decreased by 100% as they were reclassified to current liabilities [2] - Other payables increased by 25.45% due to overdue interest on loans [2] - Revenue and cost of goods sold both decreased by 52.39% and 51.99% respectively, attributed to reduced project completions [2] Cash Flow and Financial Health - Net cash flow from operating activities decreased by 48.24%, primarily due to increased payments for construction [4] - Net cash flow from investing activities dropped by 99.03%, with no significant investment recoveries during the period [4] - Net cash flow from financing activities increased by 97.21%, reflecting higher financial support from related companies [4] Business Evaluation - The company's historical return on invested capital (ROIC) has been poor, with a median of -5.28% over the past decade and a worst year ROIC of -15.13% in 2021 [4] - The company has reported losses in 6 out of 28 annual reports since its listing, indicating a challenging financial history [4] Financial Health Indicators - Cash flow situation is concerning, with cash and cash equivalents to current liabilities at only 4.33% [5] - Debt situation is critical, with interest-bearing debt ratio at 37.11% and total interest-bearing liabilities to average operating cash flow at 20.68% [5] - Financial expenses are high, with financial expenses to average operating cash flow at 328.9% [5] - Inventory levels are excessive, with inventory to revenue ratio at 522.29% [5]