Shandong Mining Machinery (SZ:002526) Zheng Quan Zhi Xing·2025-08-22 22:42Core Viewpoint - Shandong Mining Machinery (002526) reported a decline in total revenue for the first half of 2025, while net profit increased, indicating mixed financial performance [1]. Financial Performance - Total revenue for the first half of 2025 was 1.046 billion yuan, a decrease of 10.3% year-on-year [1]. - Net profit attributable to shareholders was 98.46 million yuan, an increase of 10.11% year-on-year [1]. - In Q2 2025, total revenue was 612 million yuan, down 18.55% year-on-year, while net profit was 45.38 million yuan, a decrease of 24.62% year-on-year [1]. - Gross margin was 20.76%, down 4.9% year-on-year, while net margin improved to 9.82%, up 24.25% year-on-year [1]. - Total operating expenses (selling, administrative, and financial) amounted to 122 million yuan, representing 11.68% of revenue, an increase of 19.08% year-on-year [1]. Cash Flow and Financial Ratios - Operating cash flow per share was -0.04 yuan, a significant decrease of 2133.82% year-on-year [1]. - The company’s cash and cash equivalents increased by 32.17% to 570 million yuan [1]. - Accounts receivable stood at 1.218 billion yuan, down 6.08% year-on-year, but accounted for 1073.87% of net profit [1][4]. - The company’s return on invested capital (ROIC) was 3.44%, indicating weak capital returns [3]. Business Model and Operational Insights - The company relies heavily on marketing-driven performance, necessitating a deeper analysis of the underlying drivers [4]. - The financial health indicators suggest a need for scrutiny regarding cash flow and accounts receivable management [4].