Changling Hydraulic(SH:605389) Zheng Quan Zhi Xing·2025-08-20 23:08Core Viewpoint - The financial performance of Changling Hydraulic (605389) for the first half of 2025 shows a slight decline in revenue and net profit compared to the previous year, with a notable increase in operating cash flow and a significant level of accounts receivable relative to net profit [1][5]. Financial Performance Summary - Total revenue for the first half of 2025 was 465 million yuan, a decrease of 1.22% year-on-year [1]. - Net profit attributable to shareholders was 65.74 million yuan, a slight decrease of 0.03% year-on-year [1]. - In Q2 2025, total revenue was 246 million yuan, showing a small increase of 0.08% year-on-year, while net profit for the quarter was 34.92 million yuan, up 7.79% year-on-year [1]. - Gross margin was 26.42%, down 2.63% year-on-year, and net margin was 14.48%, down 7.3% year-on-year [1]. - Total operating expenses (sales, management, and financial expenses) amounted to 25.81 million yuan, representing 5.55% of revenue, an increase of 24.25% year-on-year [1]. - Earnings per share remained stable at 0.46 yuan, while operating cash flow per share increased by 51.44% to 0.34 yuan [1]. Accounts Receivable and Financial Ratios - Accounts receivable represented 419.22% of the latest annual net profit, indicating a significant level of outstanding receivables [1][5]. - The company's return on invested capital (ROIC) for the previous year was 4.15%, which is below the historical median of 14.77% since its listing [4]. - The net profit margin for the previous year was 11.41%, suggesting average added value for products or services [4]. Changes in Financial Items - Accounts receivable financing increased by 73.36% due to higher sales revenue [3]. - Other current assets saw a significant increase of 122.84%, attributed to a rise in deductible VAT [3]. - Cash flow from operating activities increased by 51.44%, driven by the collection of supply chain notes [3].