CWB(SH:605005) Zheng Quan Zhi Xing·2025-08-22 22:16Core Viewpoint - The financial performance of Hexing Co., Ltd. (605005) for the first half of 2025 shows a mixed result, with revenue growth but a significant decline in net profit and cash flow metrics. Financial Performance Summary - Total revenue for the first half of 2025 reached 868 million yuan, an increase of 5.13% year-on-year [1] - Net profit attributable to shareholders was 107 million yuan, a decrease of 16.98% year-on-year [1] - The gross profit margin was 31.67%, down 6.35% from the previous year [1] - The net profit margin was 12.31%, reflecting a decline of 21.03% year-on-year [1] - Total operating expenses (selling, administrative, and financial) amounted to 90.6 million yuan, accounting for 10.44% of revenue, an increase of 13.45% year-on-year [1] - Earnings per share decreased to 0.27 yuan, down 15.62% year-on-year [1] Cash Flow and Receivables - Operating cash flow per share was 0.23 yuan, a significant decrease of 56.6% year-on-year [1] - Accounts receivable increased to 492 million yuan, representing a 20.84% rise year-on-year, with accounts receivable to net profit ratio reaching 185.16% [1][17] Changes in Financial Items - Cash and cash equivalents decreased by 25.6% to 174 million yuan due to extended collection periods and capital expenditures for new facilities [1] - Short-term borrowings increased by 133.12% due to additional bank loans [4] - Other receivables surged by 625.71% due to an increase in tax refunds receivable [2] - Contract liabilities decreased by 65.22% due to reduced advance payments from customers [6] Investment and Operational Insights - The company invested significantly in its German production base, leading to a 34.5% increase in construction in progress [3] - Management expenses rose by 31.72% due to increased depreciation and personnel costs related to new projects [10] - The company’s return on invested capital (ROIC) was 13.64%, indicating strong capital returns [16]