SUNSEA(SZ:002313) Zheng Quan Zhi Xing·2025-08-28 14:14Core Insights - The company reported a significant decline in revenue and net profit for the first half of 2025, indicating ongoing financial struggles [1][3] - The company's financial metrics show a concerning trend, with rising short-term debt pressure and deteriorating profitability ratios [1][3] Financial Performance - Total revenue for the first half of 2025 was 1.314 billion yuan, a decrease of 18.51% compared to 1.613 billion yuan in the same period of 2024 [1] - The net profit attributable to shareholders was -43.49 million yuan, down 14.4% from -38.02 million yuan in the previous year [1] - The gross margin fell to 16.47%, a decline of 9.68% year-on-year, while the net margin worsened to -3.31%, a drop of 40.1% [1] - Total expenses (selling, administrative, and financial) amounted to 188 million yuan, representing 14.32% of revenue, an increase of 15.13% year-on-year [1] Cash Flow and Debt Situation - Cash flow per share improved to 0.47 yuan, a significant increase of 267.2% year-on-year, despite the overall negative net profit [1] - The company’s liquidity is under pressure, with a current ratio of 0.81, indicating potential short-term financial challenges [1][3] - The company’s cash and cash equivalents increased by 34.08% to 349 million yuan, while accounts receivable decreased by 28.71% to 780 million yuan [1] Investment Returns and Business Model - The company's historical return on invested capital (ROIC) has been poor, with a median of -1.56% over the past decade and a particularly low -39.69% in 2022 [3] - The business model relies heavily on research and development, necessitating a thorough examination of the underlying drivers of this approach [3] - The company has recorded six years of losses since its IPO, raising concerns about its long-term viability without significant changes [3]