Weigao Orthopaedic(SH:688161) Zheng Quan Zhi Xing·2025-08-28 22:59Core Viewpoint - The recent financial report of Weigao Orthopedics (688161) shows a decline in total revenue but a significant increase in net profit, indicating improved profitability despite revenue challenges [1]. Financial Performance - Total revenue for the first half of 2025 was 741 million yuan, a decrease of 1.28% year-on-year [1]. - Net profit attributable to shareholders reached 142 million yuan, an increase of 52.43% year-on-year [1]. - In Q2 2025, total revenue was 451 million yuan, up 11.95% year-on-year, with net profit of 90.17 million yuan, up 54.86% year-on-year [1]. - Gross margin improved to 66.5%, an increase of 3.79% year-on-year, while net margin rose to 19.52%, up 52.35% year-on-year [1]. Cost Management - Total selling, administrative, and financial expenses amounted to 245 million yuan, accounting for 33.07% of revenue, a decrease of 19.71% year-on-year [1]. - The company reported a significant reduction in interest-bearing liabilities, down 76.12% year-on-year [1]. Shareholder Metrics - Earnings per share (EPS) increased to 0.35 yuan, a rise of 52.17% year-on-year [1]. - The net asset value per share was 10.09 yuan, up 3.67% year-on-year [1]. - Operating cash flow per share improved to 0.47 yuan, an increase of 28.66% year-on-year [1]. Business Evaluation - The company's return on invested capital (ROIC) was 5.38%, indicating average capital returns, with a historical median ROIC of 19.63% since its listing [1]. - The net profit margin for the previous year was 15.71%, suggesting high added value in products or services [1]. Debt and Cash Position - The company maintains a healthy cash position, with cash assets reported as robust [2]. - The accounts receivable situation warrants attention, as accounts receivable to profit ratio reached 128.92% [3].