HQTC(SH:688151) Zheng Quan Zhi Xing·2025-08-28 22:59Core Viewpoint - The recent financial report of Huqiang Technology (688151) indicates significant declines in revenue and net profit, raising concerns about the company's financial health and operational efficiency [1][3]. Financial Performance - For the first half of 2025, the total revenue was 178 million yuan, a decrease of 25.98% year-on-year [1]. - The net profit attributable to shareholders was 4.13 million yuan, down 84.49% compared to the previous year [1]. - In Q2 2025, total revenue was 113 million yuan, reflecting a year-on-year decline of 5.07% [1]. - The gross margin was 19.16%, a decrease of 9.1% year-on-year, while the net margin dropped to 2.33%, down 79.04% [1]. - Total expenses (selling, administrative, and financial) amounted to 41.83 million yuan, accounting for 23.54% of revenue, an increase of 13.08% year-on-year [1]. Cash Flow and Debt - The company reported a significant increase in accounts receivable, which reached 2717.24% of the latest annual net profit [1][4]. - The average operating cash flow over the past three years was negative, indicating potential liquidity issues [4]. Return on Investment - The company's Return on Invested Capital (ROIC) was 0.15% last year, indicating weak capital returns [3]. - Historical data shows a median ROIC of 11.01% since the company went public, with the worst year being 2023, where ROIC was -0.5% [3]. Business Model and Strategy - The company's performance is primarily driven by research and marketing efforts, necessitating a deeper analysis of the underlying factors influencing these drivers [3].