SCC(SH:600740) Zheng Quan Zhi Xing·2025-08-26 23:08Core Viewpoint - Shanxi Coking's financial performance for the first half of 2025 shows significant declines in revenue and net profit, indicating a challenging operational environment and potential weaknesses in its business model [1][3]. Financial Performance Summary - The total operating revenue for the first half of 2025 was 3.226 billion yuan, a decrease of 18.23% year-on-year [1]. - The net profit attributable to shareholders was -77.6111 million yuan, reflecting a year-on-year decline of 142.18% [1]. - In Q2 2025, the operating revenue was 1.544 billion yuan, down 27.29% compared to the same quarter last year [1]. - The net profit for Q2 2025 was -7.352 million yuan, a decrease of 106.22% year-on-year [1]. Profitability Metrics - The gross margin was -10.28%, an increase of 46.11% year-on-year, indicating a worsening cost structure [1]. - The net margin was -2.48%, a decline of 153.94% year-on-year, suggesting significant profitability challenges [1]. - The total of selling, administrative, and financial expenses was 281 million yuan, accounting for 8.71% of revenue, an increase of 7.85% year-on-year [1]. Cash Flow and Debt Analysis - The cash flow per share was -0.61 yuan, a decrease of 20.62% year-on-year, indicating negative operational cash flow [1]. - The company had interest-bearing liabilities of 8.603 billion yuan, an increase of 3.88% year-on-year [1]. - The cash ratio (cash and cash equivalents to current liabilities) was only 13.72%, raising concerns about liquidity [4]. Historical Performance Insights - The company's return on invested capital (ROIC) was 2.33% last year, indicating weak capital returns [3]. - Over the past decade, the median ROIC has been 5.34%, with three years of losses since its IPO, highlighting a fragile business model [3].