Zheng Quan Zhi Xing·2025-08-23 22:58Core Viewpoint - The financial performance of Beichen Real Estate (601588) for the first half of 2025 shows significant declines in revenue and profit, indicating ongoing challenges in its business model and operational efficiency [1][4]. Financial Performance Summary - Total revenue for the first half of 2025 was 3.019 billion yuan, a decrease of 11.97% compared to the previous year [1]. - Net profit attributable to shareholders was -1.585 billion yuan, down 114.73% year-on-year [1]. - In Q2 2025, total revenue was 1.824 billion yuan, an increase of 6.88% year-on-year, but net profit was still negative at -1.29 billion yuan, a decline of 128.58% [1]. - The gross margin was 25.52%, down 11.65% year-on-year, while the net margin was -56.44%, a decrease of 128.08% [1]. - The total of selling, administrative, and financial expenses reached 1.046 billion yuan, accounting for 34.63% of total revenue, an increase of 34.68% year-on-year [1]. Key Financial Metrics - Earnings per share were -0.47 yuan, a decrease of 113.64% year-on-year [1]. - The net asset value per share was 2.41 yuan, down 31.12% year-on-year [1]. - Operating cash flow per share was 0.12 yuan, an increase of 172.07% year-on-year [1]. Changes in Financial Items - Long-term equity investments increased by 32.21% due to new investments [3]. - Construction in progress decreased by 95.46% as projects were completed and transferred to fixed assets [3]. - Operating income decreased by 11.97% due to reduced revenue from the real estate development segment [3]. - Sales expenses increased by 19.91% due to higher service fees [3]. - Financial expenses rose by 34.98% due to a decrease in capitalizable interest [3]. Business Evaluation - The company's historical return on invested capital (ROIC) has been weak, with a median of 2.26% over the past decade and a particularly poor ROIC of -6.96% in 2024 [4]. - The business model relies heavily on marketing-driven performance, which requires careful examination of underlying drivers [4]. Cash Flow and Debt Analysis - The company's cash assets are considered healthy, but the cash flow situation warrants attention, with cash assets to current liabilities at 59.64% [4]. - The interest-bearing debt ratio has reached 54.62%, indicating potential concerns regarding debt management [5].