TOYOU(SZ:300302) Zheng Quan Zhi Xing·2025-08-26 23:09Core Viewpoint - The recent financial report of Tongyou Technology (300302) indicates a significant decline in revenue and net profit for the first half of 2025 compared to the same period in 2024, raising concerns about the company's financial health and operational efficiency [1]. Financial Performance Summary - Total revenue for the first half of 2025 was 174 million yuan, a decrease of 31.09% year-on-year from 252 million yuan in 2024 [1]. - The net profit attributable to shareholders was -18.38 million yuan, representing a decline of 140.71% from a profit of 45.15 million yuan in the previous year [1]. - The gross margin improved to 51.61%, up 4.74% year-on-year, while the net margin fell to -10.58%, a decrease of 159.08% [1]. - The total of financial, sales, and administrative expenses reached 53.73 million yuan, accounting for 30.93% of total revenue, which is an increase of 71.39% year-on-year [1]. Cash Flow and Debt Analysis - The company reported a significant increase in cash flow from operating activities, with a net cash flow of -0.01 yuan per share, improving by 94.35% year-on-year [1][4]. - The total interest-bearing debt rose to 539 million yuan, an increase of 17.92% from 457 million yuan in the previous year [1]. - The cash and cash equivalents increased by 108.91%, indicating a positive net increase due to the combined effects of operating, investing, and financing cash flows [4]. Asset and Liability Changes - The company experienced a 39.69% increase in right-of-use assets due to lease renewals [2]. - Accounts receivable decreased by 8.56% to 344 million yuan, while accounts payable increased by 93.79%, indicating a rise in outstanding payments for goods [2]. - The company’s non-current liabilities due within one year increased by 258.58%, reflecting a reclassification of long-term payables [4]. Historical Performance Insights - Over the past decade, the company's median Return on Invested Capital (ROIC) has been weak at 2.09%, with the worst year being 2024 at -17.18% [6]. - The company has reported losses in four out of twelve annual reports since its listing, suggesting a challenging operational history [6]. Recommendations for Monitoring - Attention is advised on the company's cash flow situation, with a cash ratio of 41.71% and a three-year average operating cash flow to current liabilities ratio of only 1.23% [7]. - The debt situation is concerning, with an interest-bearing debt ratio of 31.4% and a ratio of total interest-bearing debt to the three-year average operating cash flow reaching 105.87% [7]. - Financial expenses are notably high, with financial expenses to the three-year average operating cash flow ratio at 202.39% [7].