DHE(SZ:002221) Zheng Quan Zhi Xing·2025-08-22 23:20Core Viewpoint - Donghua Energy (002221) 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][3]. Financial Performance - Total revenue for the first half of 2025 reached 16.283 billion yuan, a year-on-year increase of 13.28% compared to 14.374 billion yuan in 2024 [1]. - Net profit attributable to shareholders was 66.376 million yuan, down 39.8% from 110 million yuan in the previous year [1]. - The gross margin decreased to 3.89%, a decline of 11.42% from 4.39% in 2024, while the net margin fell to 0.46%, down 45.14% from 0.84% [1]. - Operating cash flow per share was 0.2 yuan, a decrease of 33.49% from 0.3 yuan in 2024 [1]. Cash Flow and Debt Management - The company experienced a significant drop in cash flow, with net cash flow from operating activities decreasing by 33.49% due to increased procurement costs influenced by tariffs [3]. - The liquidity ratio stood at 0.99, indicating rising short-term debt pressure [1][4]. - The company’s cash and cash equivalents saw a net decrease of 515.12% due to loan repayments [3]. Cost Structure and Efficiency - Total selling, administrative, and financial expenses amounted to 539 million yuan, representing 3.31% of revenue, a decrease of 17.39% from the previous year [1]. - The company’s return on invested capital (ROIC) was reported at 3.47%, indicating weak capital returns compared to the historical median of 5.65% [3]. Accounts Receivable and Financial Health - Accounts receivable increased by 9.14% to 4.831 billion yuan, raising concerns as it represented 1088.34% of profit [4]. - The company’s interest-bearing debt ratio reached 51.6%, highlighting potential financial strain [4].