SCAM(SZ:300554) Zheng Quan Zhi Xing·2025-08-27 22:56Core Viewpoint - The financial performance of San Chao New Materials (300554) for the first half of 2025 shows a significant decline in revenue and a negative net profit, indicating challenges in the business model and market conditions [1][3]. Financial Performance Summary - Total revenue for the first half of 2025 was 103 million yuan, a decrease of 51.88% year-on-year [1]. - The net profit attributable to shareholders was -12.747 million yuan, an increase of 35.35% compared to the previous year [1]. - The gross margin was 20.14%, up 1.18% year-on-year, while the net margin was -12.16%, down 22.3% [1]. - The total of selling, administrative, and financial expenses (three expenses) accounted for 26.97% of total revenue, an increase of 88.22% year-on-year [1]. Cash Flow and Financial Position - Cash and cash equivalents increased by 174.30% to 173 million yuan due to the maturity of bank wealth management products [3]. - The net cash flow from operating activities increased by 154.78%, attributed to reduced cash payments for goods and services [3]. - The company reported a significant decrease in accounts receivable by 40.72%, indicating improved cash collection [3]. Investment and R&D - Research and development expenses decreased by 33.25%, reflecting a reduction in investment in innovation [3]. - The company’s return on invested capital (ROIC) has been historically low, with a median of 6.53% since its listing, and a particularly poor ROIC of -15.93% in 2024 [4]. Operational Challenges - The decline in revenue was primarily due to reduced sales volume and lower prices of diamond wire products [3]. - The company has experienced two years of losses since its listing, indicating a fragile business model [5].