Headman(SH:688577) Zheng Quan Zhi Xing·2025-08-28 14:20Core Insights - Zhejiang Haideman (688577) reported a decline in total revenue and net profit for the first half of 2025, with total revenue at 362 million yuan, down 3.09% year-on-year, and net profit at 8.0652 million yuan, down 26.39% year-on-year [1] Financial Performance - Total revenue for Q2 2025 was 220 million yuan, showing a year-on-year increase of 5.52%, while net profit for the same period was 5.942 million yuan, down 27.02% year-on-year [1] - The gross margin decreased to 23.51%, down 3.86% year-on-year, and the net margin fell to 2.23%, down 24.04% year-on-year [1] - Total expenses (selling, administrative, and financial) amounted to 58.4664 million yuan, accounting for 16.14% of revenue, an increase of 6.63% year-on-year [1] - Earnings per share decreased to 0.07 yuan, down 30.00% year-on-year, and operating cash flow per share dropped to 0.09 yuan, down 74.52% year-on-year [1] Balance Sheet Changes - Accounts receivable increased significantly by 51.42% year-on-year, reaching 170 million yuan [1] - Cash and cash equivalents decreased by 11.35% year-on-year, totaling 27.098 million yuan [1] - The company reported a net cash flow from financing activities with a significant decline of 382.28%, attributed to increased dividend payments and bank loan repayments [3] Investment and Operational Insights - The company’s return on invested capital (ROIC) was 2.77%, indicating weak capital returns, with a historical median ROIC of 7.81% since its listing [6] - The business model relies heavily on research and marketing, necessitating a closer examination of the underlying drivers [6] - The cash flow situation is concerning, with a cash to current liabilities ratio of only 9.23% [6] - Accounts receivable are notably high, with a ratio of accounts receivable to profit reaching 659.77% [6] Fund Holdings - The largest fund holding Zhejiang Haideman is the Huaxia Panrui One-Year Open Mixed A Fund, which has increased its position to 135,300 shares [5]