FSSS(SH:600399) Zheng Quan Zhi Xing·2025-08-26 22:39Core Insights - Fushun Special Steel (600399) reported disappointing financial results for the first half of 2025, with total revenue of 3.823 billion yuan, a year-on-year decline of 10.62%, and a net profit attributable to shareholders of -278 million yuan, a decrease of 221.83% [1] Financial Performance - Total revenue for Q2 2025 was 2.067 billion yuan, down 6.27% year-on-year [1] - The gross profit margin plummeted to 0.82%, a decrease of 93.88% compared to the previous year [1] - The net profit margin turned negative at -7.26%, a decline of 236.31% year-on-year [1] - The company’s accounts receivable increased by 42.14%, reaching 852 million yuan [1] Cash Flow and Debt - Cash and cash equivalents decreased by 21.87% to 932 million yuan, attributed to increased project expenditures and accounts receivable [3] - The net cash flow from operating activities dropped significantly by 270.89%, primarily due to changes in the treatment of discounted bills [5] - Interest-bearing liabilities rose by 4.90% to 3.398 billion yuan [1] Operational Efficiency - The company’s return on invested capital (ROIC) was only 1.55%, indicating weak capital returns [6] - The average net cash flow from operating activities over the past three years has been negative, raising concerns about financial sustainability [8] Business Model and Strategy - The company relies heavily on research and development for its business performance, necessitating a thorough examination of the underlying drivers [7]