CICT Mobile (SH:688387) Zheng Quan Zhi Xing·2025-08-23 23:29Core Viewpoint - Xinke Mobile (688387) reported a decline in revenue and net profit for the first half of 2025, indicating challenges in its operational performance due to a slowdown in operator construction plans and macroeconomic impacts [1][2]. Financial Performance - Total revenue for the first half of 2025 was 2.537 billion yuan, a decrease of 15.21% year-on-year [1]. - The net profit attributable to shareholders was -61.7388 million yuan, a slight decline of 0.54% year-on-year [1]. - In Q2 2025, total revenue was 1.722 billion yuan, down 14.89% year-on-year, with a net profit of 94.56 million yuan, down 2.69% year-on-year [1]. - The gross margin improved to 26.64%, an increase of 5.96% year-on-year, while the net margin decreased to -2.97%, a decline of 9.71% year-on-year [1]. Accounts Receivable and Cash Flow - Accounts receivable accounted for 77.96% of total revenue, indicating a significant amount of outstanding payments [1]. - Operating cash flow per share improved to -0.02 yuan, a 92.18% increase year-on-year, reflecting reduced procurement and cash payments [1][3]. Cost and Expenses - Total sales, management, and financial expenses amounted to 195 million yuan, representing 7.68% of revenue, an increase of 4.09% year-on-year [1]. - Research and development expenses decreased by 10.83%, indicating cost efficiency improvements [2]. Debt and Liabilities - Interest-bearing debt decreased significantly by 53.99% to 800 million yuan, reflecting improved cash flow management [1][2]. - The company experienced a 97.23% reduction in non-current liabilities due within one year, indicating strong liquidity [2]. Investment and Market Position - The company’s historical return on invested capital (ROIC) has been poor, with a median ROIC of -22.89% since its listing, highlighting challenges in generating returns [3]. - The business model relies heavily on research and development, necessitating careful evaluation of the underlying drivers of performance [3]. Fund Holdings - The largest fund holding Xinke Mobile is the Jianxin Shanghai Stock Exchange Selected Sci-Tech Innovation Board Innovative Value ETF, with a scale of 797 million yuan [4].