Hillstone Networks(SH:688030) Zheng Quan Zhi Xing·2025-08-28 14:19Core Viewpoint - The financial performance of 山石网科 (ShanShi Network Technology) shows a mixed trend with revenue growth but continued net losses, indicating challenges in profitability despite operational improvements. Financial Performance Summary - Total revenue for the first half of 2025 reached 417 million yuan, a year-on-year increase of 9.46% compared to 381 million yuan in 2024 [1] - The net profit attributable to shareholders was -76.56 million yuan, improving by 4.31% from -80.01 million yuan in the previous year [1] - The gross margin decreased to 69.26%, down 5.00% from 72.91% in 2024 [1] - The net margin improved to -18.72%, an increase of 11.52% from -21.16% in 2024 [1] - Total receivables increased significantly to 1.03 billion yuan, a rise of 36.13% from 757 million yuan [1] - The company reported a significant decline in operating cash flow per share, which was -0.70 yuan, down 79.89% from -0.39 yuan [1][2] Operational Insights - The company has implemented a strategy focusing on "technology + ecology" to improve its business model and reduce losses, aiming for stable revenue growth and significant loss reduction in 2025 [4] - The company is actively expanding its market presence in the financial sector, with successful case studies and collaborations, particularly with 神州数码 (Digital China) [5] - The company is also exploring opportunities in the energy sector and enhancing its overseas market strategy, particularly in Hong Kong and Southeast Asia [5] Cost Management and Efficiency - The total expenses as a percentage of revenue decreased to 46.58%, down 21.57% from 59.39% in the previous year, indicating improved cost management [1][7] - The company has seen a 20% increase in sales personnel productivity compared to the same period in 2023, reflecting operational efficiency improvements [7] - The company plans to continue reducing its expense ratio as it expands its product offerings and channel systems [7]