CWPC(SZ:002630) Zheng Quan Zhi Xing·2025-08-23 22:58Core Viewpoint - ST Huaxi reported a significant decline in revenue and net profit for the first half of 2025, indicating ongoing financial challenges and operational inefficiencies [1][3]. Financial Performance - Total revenue for the first half of 2025 was 1.022 billion yuan, a decrease of 31.08% compared to 1.483 billion yuan in the same period of 2024 [1]. - Net profit attributable to shareholders was 36.17 million yuan, down 41.76% from 62.11 million yuan in the previous year [1]. - The gross margin improved to 21.88%, up 13.95% year-on-year, while the net margin decreased to 3.44%, down 4.43% year-on-year [1]. Cost Structure - The combined expenses (selling, administrative, and financial) rose significantly, accounting for 20.06% of total revenue, an increase of 32.71% year-on-year [1]. - Total expenses amounted to 205 million yuan, reflecting the company's struggle to manage costs effectively [1]. Cash Flow and Debt - Operating cash flow per share increased to 0.06 yuan, a 109.89% rise year-on-year, attributed to improved collection efforts on receivables [1][3]. - The company’s interest-bearing liabilities increased slightly by 2.22% to 5.038 billion yuan [1]. Asset and Investment Analysis - The company’s cash and cash equivalents decreased by 20.25% to 168 million yuan, indicating liquidity concerns [1]. - The return on invested capital (ROIC) has been historically low, with a median of 1.37% over the past decade, and a particularly poor performance in 2022 with a ROIC of -7.27% [4][5]. Financial Health Indicators - The company has a low liquidity ratio, with a current ratio of only 0.56, raising concerns about its ability to meet short-term obligations [5]. - The ratio of interest-bearing debt to operating cash flow averaged over the past three years reached 25.81%, indicating potential financial strain [5].