LMC(SZ:002921) Zheng Quan Zhi Xing·2025-08-24 00:00Core Insights - The company Liancheng Precision (002921) reported a revenue increase and a reduction in losses for the first half of 2025, with total revenue reaching 550 million yuan, a year-on-year increase of 2.6% [1] - The net profit attributable to shareholders was -12.03 million yuan, showing a year-on-year improvement of 36.03% [1] Financial Performance - Total revenue for Q2 2025 was 289 million yuan, up 5.25% year-on-year [1] - Q2 net profit attributable to shareholders was -4.23 million yuan, an increase of 65.47% year-on-year [1] - Gross margin stood at 12.91%, down 11.08% year-on-year, while net margin improved to -2.17%, a 38.52% increase year-on-year [1] - Total expenses (selling, administrative, and financial) amounted to 66.83 million yuan, accounting for 12.15% of revenue, a decrease of 14.68% year-on-year [1] Key Ratios and Metrics - Earnings per share (EPS) was -0.1 yuan, reflecting a 36.97% improvement year-on-year [1] - The company's net asset per share was 7.9 yuan, up 2.08% year-on-year [1] - Operating cash flow per share was 0.45 yuan, down 30.95% year-on-year [1] Historical Context - The company's return on invested capital (ROIC) was 0.3% last year, indicating historically low capital returns [3] - The median ROIC since the company went public is 6.93%, suggesting average investment returns [3] - The company has reported a loss in one of the seven annual reports since its IPO, warranting further investigation into potential underlying issues [3] Cash Flow and Debt Analysis - The cash flow situation is concerning, with cash and cash equivalents covering only 47.14% of current liabilities [3] - The average operating cash flow over the past three years is only 19.87% of current liabilities [3] - The interest-bearing debt ratio has reached 35.62%, indicating a significant level of debt [3]