Wujin Stainless(SH:603878) Zheng Quan Zhi Xing·2025-08-27 22:56Core Viewpoint - 武进不锈 (603878) reported a significant decline in both revenue and net profit for the first half of 2025, indicating financial challenges and potential liquidity issues. Financial Performance Summary - Total revenue for the first half of 2025 was 1.121 billion yuan, a decrease of 26.82% year-on-year [1] - Net profit attributable to shareholders was 75.4975 million yuan, down 46.05% year-on-year [1] - The second quarter revenue was 638 million yuan, a decline of 20.38% year-on-year, with net profit of 45.1746 million yuan, down 37.17% year-on-year [1] - Gross margin was 14.41%, a decrease of 13.16% year-on-year, while net margin was 6.74%, down 26.27% year-on-year [1] - Total operating expenses (selling, administrative, and financial) amounted to 51.198 million yuan, accounting for 4.57% of revenue, a slight decrease of 0.62% year-on-year [1] Balance Sheet Highlights - Cash and cash equivalents decreased by 43.89% to 421 million yuan due to increased long-term deposits [1] - Accounts receivable decreased by 36.02% to 489 million yuan, but still represented 389.29% of net profit [1][4] - Interest-bearing liabilities decreased by 5.86% to 380 million yuan [1] Cash Flow Analysis - Operating cash flow per share was 0.19 yuan, a significant decrease of 63.63% year-on-year [1] - Net cash flow from operating activities decreased by 63.63% due to reduced cash received from sales [4] - Net cash flow from investing activities decreased by 257.61% due to increased purchases of financial products [4] Investment and Return Metrics - The company's return on invested capital (ROIC) was 4.11%, indicating weak capital returns [4] - Historical median ROIC since listing was 9.31%, suggesting that current performance is below historical averages [4] - The net profit margin for the previous year was 4.74%, indicating low added value from products or services [4]