ELECSPN(SZ:002935) Zheng Quan Zhi Xing·2025-08-20 23:08Core Viewpoint - Tian'ao Electronics (002935) reported disappointing financial results for the first half of 2025, with significant declines in revenue and net profit compared to the previous year [1] Financial Performance Summary - Total revenue for the first half of 2025 was 318 million yuan, a decrease of 16.09% year-on-year [1] - Net profit attributable to shareholders was 8.31 million yuan, down 46.25% year-on-year [1] - In Q2 2025, total revenue was 226 million yuan, a decline of 16.74% year-on-year, with net profit of 14.73 million yuan, down 40.03% year-on-year [1] - Gross margin was 24.08%, a decrease of 3.1% year-on-year, while net margin fell to 2.62%, down 35.94% year-on-year [1] - Total operating expenses (selling, administrative, and financial) amounted to 46 million yuan, accounting for 14.48% of revenue, an increase of 3.52% year-on-year [1] Cash Flow and Receivables - Operating cash flow per share was 0.06 yuan, a significant decrease of 71.28% year-on-year [1] - Accounts receivable reached 921 million yuan, representing a 1.49% increase year-on-year, with accounts receivable to net profit ratio at 1434.04% [1] Changes in Financial Items - Significant changes in financial items included a 62.42% decrease in notes receivable due to maturity [2] - Accounts payable decreased by 33.49% due to maturing payables [2] - Tax liabilities decreased by 37.83% due to payments of VAT and income tax [2] - Other payables decreased by 50.57% due to the repurchase of restricted stock [2] - Financial expenses increased by 43.13% due to reduced interest income [2] - Net cash flow from operating activities decreased by 71.44% due to increased cash payments for goods and services [2] Business Evaluation - The company's return on invested capital (ROIC) was 3.85%, indicating weak capital returns, with a historical median ROIC of 9.41% since its listing [3] - The company's cash assets are considered healthy, but attention is needed on cash flow and accounts receivable management [3] - The business model relies heavily on research and development, necessitating further investigation into the underlying drivers of this approach [3]