ENC(SH:603869) Zheng Quan Zhi Xing·2025-08-27 22:56Core Viewpoint - ST Zhizhi (603869) 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 277 million yuan, a decrease of 8.33% year-on-year [1]. - Net profit attributable to shareholders was 16.91 million yuan, down 22.02% year-on-year [1]. - In Q2 2025, total revenue was 161 million yuan, an increase of 20.89% year-on-year, while net profit was 11.03 million yuan, a decrease of 18.98% year-on-year [1]. - Gross margin was 41.34%, down 13.63% year-on-year, and net margin was 5.92%, down 17.28% year-on-year [1]. - Total operating expenses (sales, management, and financial expenses) amounted to 68.72 million yuan, accounting for 24.84% of revenue, a decrease of 13.35% year-on-year [1]. Balance Sheet and Cash Flow - Cash and cash equivalents decreased by 20.03% to 1.156 billion yuan [1]. - Accounts receivable stood at 644 million yuan, down 19.17% year-on-year, but the accounts receivable to net profit ratio reached 3105.21% [1][3]. - Interest-bearing debt decreased significantly by 77.51% to 51.67 million yuan [1]. - Earnings per share remained at 0.04 yuan, while operating cash flow per share turned negative at -0.04 yuan, a decline of 123.7% year-on-year [1]. Business Model and Investment Return - The company's net margin was reported at 3.1% last year, indicating low added value in products or services [3]. - Historical data shows a median Return on Invested Capital (ROIC) of 6.66%, with the worst year being 2023 at -2.22% [3]. - The company's performance relies heavily on R&D, marketing, and capital expenditures, necessitating careful evaluation of capital spending projects [3].