HengBao Co.,LTD.(SZ:002104) Zheng Quan Zhi Xing·2025-08-27 22:56Core Viewpoint - Hengbao Co., Ltd. reported disappointing financial results for the first half of 2025, with significant declines in revenue and net profit compared to the previous year [1][3]. Financial Performance - Total revenue for the first half of 2025 was 430 million yuan, a decrease of 8.64% year-on-year [1]. - Net profit attributable to shareholders was 35.35 million yuan, down 44.41% year-on-year [1]. - In Q2 2025, total revenue was 183 million yuan, a decline of 21.91% year-on-year, and net profit was 11.42 million yuan, down 69.44% year-on-year [1]. Profitability Metrics - Gross margin was 28.91%, a decrease of 16.07% year-on-year [1]. - Net margin was 8.22%, down 39.15% year-on-year [1]. - The total of selling, administrative, and financial expenses was 58.59 million yuan, accounting for 13.62% of revenue, an increase of 17.85% year-on-year [1]. Balance Sheet Highlights - Cash and cash equivalents increased to 574 million yuan, up 90.83% year-on-year [1]. - Accounts receivable stood at 167 million yuan, a decrease of 13.02% year-on-year, but still represented 175.46% of the latest annual net profit [1][3]. - Interest-bearing debt decreased significantly to 1.44 million yuan, down 99.06% year-on-year [1]. Earnings Per Share - Earnings per share were 0.05 yuan, a decrease of 44.80% year-on-year [1]. - Operating cash flow per share was 0.05 yuan, an increase of 664.76% year-on-year [1]. Return on Investment - The company's return on invested capital (ROIC) was 4.12%, indicating weak capital returns [3]. - Historical data shows a median ROIC of 5.89% over the past decade, with the worst year being 2020 at -1.51% [3]. Business Model and Debt Servicing - The company's performance is primarily driven by research and development, necessitating further investigation into the underlying drivers [3]. - The company has a healthy cash position, indicating good debt servicing capability [3].