M&S ELECTRONICS(SH:688311) Zheng Quan Zhi Xing·2025-08-27 22:29Core Viewpoint - The recent financial report of Alliance Electronics (688311) shows a significant increase in total revenue and a reduction in net loss, indicating a recovery in business operations despite challenges in profitability metrics [1]. Financial Performance Summary - Total revenue for the first half of 2025 reached 120 million yuan, a year-on-year increase of 49.74% compared to 79.98 million yuan in 2024 [1]. - The net profit attributable to shareholders was -37.13 million yuan, improving by 13.72% from -43.04 million yuan in the previous year [1]. - In Q2 2025, total revenue was 98.64 million yuan, reflecting a 50.11% increase year-on-year [1]. - The gross margin decreased to 36.26%, down 26.52% from the previous year, while the net margin improved to -31.24%, a 42.79% increase [1]. - The total of selling, administrative, and financial expenses was 55.57 million yuan, accounting for 46.4% of revenue, a decrease of 42.21% year-on-year [1]. Cash Flow and Debt Management - Operating cash flow per share was 0.96 yuan, a significant increase of 294.15% year-on-year, indicating improved cash generation capabilities [1]. - The company reduced its interest-bearing debt by 51.51%, bringing it down to 181 million yuan [1]. - The cash and cash equivalents decreased by 63.37% to 134 million yuan due to investments in financial products and loan repayments [1]. Accounts Receivable and Inventory Management - Accounts receivable amounted to 497 million yuan, a decrease of 14.71% from the previous year, but still represented 356.44% of total revenue [1]. - Inventory levels are concerning, with inventory to revenue ratio reaching 256.91%, indicating potential liquidity issues [16]. Fund Holdings and Market Sentiment - The largest fund holding in Alliance Electronics is the Science and Technology Innovation Board Bosera Fund, which has reduced its position, while several other funds have newly entered the top ten holdings [17]. - The overall market sentiment appears cautious, with analysts projecting a revenue of 101 million yuan for 2025 and an average earnings per share of 0.6 yuan [16].