SERVYOU(SH:603171) Zheng Quan Zhi Xing·2025-08-21 01:09Core Viewpoint - Taxfriend Co., Ltd. (603171) reported mixed financial results for the first half of 2025, with revenue growth but a significant decline in net profit, indicating potential challenges in profitability and cash flow management [1][2]. Financial Performance - Total revenue for the first half of 2025 reached 922 million yuan, a year-on-year increase of 13.25% compared to 814 million yuan in the same period of 2024 [1]. - Net profit attributable to shareholders was 71.01 million yuan, down 19.52% from 88.24 million yuan in the previous year [1]. - The gross margin decreased to 59.06%, a decline of 3.36% year-on-year, while the net margin fell to 7.71%, down 28.86% [1]. - Total operating expenses (selling, administrative, and financial) amounted to 254 million yuan, accounting for 27.5% of revenue, an increase of 12.21% year-on-year [1]. Cash Flow and Receivables - The company reported a significant increase in accounts receivable, which reached 267 million yuan, representing 237.34% of the net profit, indicating potential liquidity issues [1][6]. - The net cash flow from financing activities increased by 480.47%, attributed to the need for additional short-term working capital [2]. Investment Returns - The company's return on invested capital (ROIC) was reported at 3%, which is below the historical median of 14.71% since its listing [2][4]. - The average operating cash flow over the past three years was only 15.12% of current liabilities, raising concerns about cash flow sustainability [6]. Market Position and Fund Holdings - The company has attracted interest from several funds, with notable holdings from Huazhong Fund, which recently increased its stake [5]. - The most significant fund holding is the Huazhong Small and Medium Growth Mixed Fund, with a scale of 1.85 billion yuan and a recent net value decline of 0.6% [5].