SLPT(SH:603178) Sou Hu Cai Jing·2025-08-27 22:25Core Viewpoint - Shenglong Co., Ltd. (603178) reported mixed financial results for the first half of 2025, with revenue growth but significant losses in net profit and declining profitability metrics [1]. Financial Performance - Total revenue for the first half of 2025 reached 833 million yuan, a year-on-year increase of 16.56% compared to 715 million yuan in 2024 [1]. - The net profit attributable to shareholders was -55.14 million yuan, a decline of 364.99% from a profit of 20.81 million yuan in the previous year [1]. - The gross margin decreased to 4.15%, down 54.44% from 9.11% in 2024, while the net margin fell to -6.62%, a drop of 327.34% from 2.91% [1]. Key Financial Metrics - The company's accounts receivable increased by 52.65%, rising to 471 million yuan from 308 million yuan [1]. - The total of selling, administrative, and financial expenses was 52.67 million yuan, accounting for 6.32% of revenue, a decrease of 13.6% year-on-year [1]. - Earnings per share (EPS) dropped to -0.23 yuan, a decline of 355.56% from 0.09 yuan in the previous year [1]. Cash Flow and Assets - Operating cash flow per share was -0.03 yuan, down 116.57% from 0.19 yuan [1]. - The company's cash and cash equivalents decreased by 20.91%, totaling 173 million yuan [1]. - The company reported a significant increase in financial expenses, up 7123.88%, attributed to reduced time deposits and currency fluctuations [3]. Business Model and Operational Insights - The company's return on invested capital (ROIC) was 2.04%, indicating weak capital returns, with a historical median ROIC of 9.26% since its listing [3]. - The business model relies heavily on research and marketing, necessitating a thorough examination of the underlying drivers of these operations [3]. - The company has a concerning cash flow situation, with cash and cash equivalents covering only 35.14% of current liabilities [3].