TGC(SZ:300265) Zheng Quan Zhi Xing·2025-08-23 22:58Core Viewpoint - Tongguang Cable (300265) reported mixed financial results for the first half of 2025, with revenue growth but a significant decline in net profit, raising concerns about cash flow and accounts receivable management [1][3]. Financial Performance - Total revenue for the first half of 2025 reached 1.228 billion yuan, a year-on-year increase of 7.01% [1]. - Net profit attributable to shareholders was 17.69 million yuan, down 59.49% compared to the previous year [1]. - In Q2 2025, revenue was 831 million yuan, up 20.16% year-on-year, while net profit was 12.11 million yuan, down 62.89% [1]. - Gross margin decreased to 15.66%, a drop of 7.3% year-on-year, and net margin fell to 1.57%, down 60.35% [1]. - Total operating expenses (selling, administrative, and financial) amounted to 102 million yuan, accounting for 8.31% of revenue, a decrease of 3.46% year-on-year [1]. Cash Flow and Receivables - The company reported a significant accounts receivable issue, with accounts receivable amounting to 1.357 billion yuan, representing 2895.03% of the net profit [1][4]. - Operating cash flow per share was -0.09 yuan, an increase of 75.99% year-on-year, indicating improved cash flow from operations despite negative cash flow [1][3]. - The cash flow situation is concerning, with cash and cash equivalents covering only 50.34% of current liabilities [4]. Investment Returns - The company's Return on Invested Capital (ROIC) for the previous year was 2.38%, indicating weak capital returns [3]. - Historical data shows a median ROIC of 4.65% over the past decade, suggesting generally poor investment returns [3].