TC(SH:603085) Sou Hu Cai Jing·2025-08-26 22:22Core Viewpoint - Tiancheng Control (603085) reported a significant increase in total revenue and net profit for the first half of 2025, indicating strong business performance despite rising short-term debt pressure [1]. Financial Performance - Total revenue for the first half of 2025 reached 1.156 billion yuan, a year-on-year increase of 31.4% compared to 880 million yuan in 2024 [1]. - Net profit attributable to shareholders was 23.27 million yuan, up 47.55% from 15.77 million yuan in the previous year [1]. - The gross profit margin decreased to 16.63%, down 18.75% year-on-year, while the net profit margin increased to 2.01%, up 12.29% [1]. - The total of selling, administrative, and financial expenses was 94.02 million yuan, accounting for 8.14% of revenue, a decrease of 34.76% year-on-year [1]. Cash Flow and Debt Situation - Operating cash flow per share increased significantly to 0.47 yuan, a rise of 7536.42% year-on-year from -0.01 yuan [1]. - The current ratio stands at 0.9, indicating rising short-term debt pressure [1]. - The company’s cash and cash equivalents decreased by 36.61% due to a reduction in acceptance guarantee deposits [3]. Business Operations - The increase in revenue was attributed to higher orders in passenger car seat business and a recovery in the markets for engineering machinery, commercial vehicle seats, and aircraft seats [3]. - The cost of goods sold rose by 37.74%, reflecting increased sales volume [3]. - Research and development expenses increased by 37.26% due to higher total salaries for R&D personnel [5]. Investment Returns - The company's return on invested capital (ROIC) was 0.33%, indicating weak capital returns in recent years [4]. - Historical data shows a median ROIC of 4.85% since the company went public, with three years of losses out of nine annual reports, suggesting a fragile business model [4].