Guangdong Quanwei Technology (SZ:300716) Zheng Quan Zhi Xing·2025-08-26 23:09Core Viewpoint - ST Quanwei (300716) reported a significant decline in revenue and a negative net profit for the first half of 2025, indicating ongoing financial struggles and increased operational costs [1][2]. Financial Performance Summary - Total revenue for H1 2025 was 46.204 million yuan, a decrease of 68.28% year-on-year [1]. - The net profit attributable to shareholders was -36.7945 million yuan, an increase of 21.73% compared to the previous year [1]. - In Q2 2025, total revenue was 23.1078 million yuan, down 72.98% year-on-year, with a net profit of -20.116 million yuan, up 27.58% year-on-year [1]. Cost Structure Analysis - The combined expenses (financial, sales, and management) accounted for 94.64% of total revenue, reflecting a year-on-year increase of 111.37% [1]. - The gross margin was -31.64%, a decrease of 224.23% year-on-year, while the net margin was -155.06%, down 137.03% year-on-year [1]. Asset and Liability Overview - Cash and cash equivalents increased by 91.97% to 9.1983 million yuan, while accounts receivable decreased by 47.42% to 37.0957 million yuan [1]. - Interest-bearing liabilities decreased by 34.17% to 197 million yuan [1]. Investment Return Metrics - The historical median Return on Invested Capital (ROIC) since the company’s listing is 5.03%, with a notably poor ROIC of -62.3% in 2024 [2]. - The company has reported losses in four out of its seven annual reports since going public, indicating a generally poor investment outlook [2]. Cash Flow and Debt Situation - The cash flow situation is concerning, with a cash to current liabilities ratio of only 1.52% and an average operating cash flow to current liabilities ratio of 8.69% over the past three years [3]. - The interest-bearing debt ratio has reached 24.33%, and the current ratio is only 0.17, highlighting potential liquidity issues [3].