Jingfeng Pharmaceutical(SZ:000908) Zheng Quan Zhi Xing·2025-08-25 22:24Core Viewpoint - ST Jingfeng (000908) reported a decline in total revenue and a negative net profit for the first half of 2025, indicating increased short-term debt pressure and a need for careful financial management [1]. Financial Performance - Total revenue for the first half of 2025 was 183 million yuan, a decrease of 9.47% year-on-year [1]. - The net profit attributable to shareholders was -32.57 million yuan, showing a slight improvement of 1.47% compared to the previous year [1]. - In Q2 2025, total revenue was 83.28 million yuan, down 18.36% year-on-year, with a net profit of -20.67 million yuan, an increase of 35.27% year-on-year [1]. - The gross profit margin improved to 65.33%, up 3.78% year-on-year, while the net profit margin decreased to -17.55%, down 18.26% year-on-year [1]. - Total expenses (selling, administrative, and financial) amounted to 140 million yuan, accounting for 76.15% of revenue, an increase of 5.71% year-on-year [1]. Cash Flow and Debt Management - The net cash flow from operating activities decreased by 110.18%, attributed to reduced revenue [4]. - The net cash flow from investing activities saw a significant decline of 4405.63%, due to investments in Changde Jingze [5]. - The net cash flow from financing activities increased by 39.33%, linked to changes in bank financing [6]. - The net increase in cash and cash equivalents dropped by 1350.06%, also due to investments in Changde Jingze [7]. - The liquidity ratio stood at 0.19, indicating potential liquidity issues [1][10]. Historical Performance and Business Model - The company's historical return on invested capital (ROIC) was 46.16% last year, but the median ROIC over the past decade was only 0.82%, indicating weak investment returns historically [8]. - The company has reported losses in 12 out of 26 annual reports since its listing, suggesting a generally poor financial track record [8]. - The business model relies heavily on marketing-driven performance, necessitating a thorough examination of the underlying drivers [9].