Zhejiang Xinao Textiles (SH:603889) Zheng Quan Zhi Xing·2025-08-23 22:50Core Viewpoint - Xin'ao Co., Ltd. (603889) reported mixed financial results for the first half of 2025, with a slight decline in revenue but an increase in net profit, indicating improved profitability metrics despite overall revenue challenges [1]. Financial Performance - Total revenue for the first half of 2025 was 2.554 billion yuan, a decrease of 0.08% year-on-year [1]. - Net profit attributable to shareholders was 271 million yuan, an increase of 1.67% year-on-year [1]. - In Q2 2025, total revenue was 1.452 billion yuan, down 0.35% year-on-year, while net profit was 169 million yuan, a decline of 0.41% year-on-year [1]. - Gross margin improved to 21.6%, up 3.62% year-on-year, and net margin increased to 11.22%, up 3.17% year-on-year [1]. Cost and Expenses - Total selling, administrative, and financial expenses amounted to 132 million yuan, accounting for 5.15% of revenue, a decrease of 3.64% year-on-year [1]. - The company reported a significant increase in financial expenses due to foreign exchange gains, which improved by 85.19% year-on-year [3][4]. Cash Flow and Assets - Operating cash flow per share was -0.01 yuan, a decrease of 116.71% year-on-year, indicating increased cash outflows for purchasing goods and services [1][4]. - Cash and cash equivalents remained stable at 859 million yuan, with a slight increase of 0.11% year-on-year [1]. Debt and Liabilities - Interest-bearing debt rose to 1.926 billion yuan, an increase of 22.90% year-on-year [1]. - The company’s debt-to-asset ratio reached 29.46%, indicating a significant level of leverage [4]. Investment and Shareholder Returns - The estimated dividend yield for the company is 5.02%, suggesting a focus on returning value to shareholders [4]. - Analysts project a net profit of 437 million yuan for 2025, with an average earnings per share estimate of 0.6 yuan [4]. Fund Holdings - The largest fund holding Xin'ao Co., Ltd. is Huatai-PB Active Selection Stock A, with 2.26 billion yuan in assets and a recent net value increase of 0.47% [5].