Wave Cyber (Shanghai) (SH:688718) Zheng Quan Zhi Xing·2025-08-28 22:59Core Insights - The company Weisaibo (688718) reported a total revenue of 185 million yuan for the first half of 2025, reflecting a year-on-year increase of 0.27%, while the net profit attributable to shareholders decreased by 19.3% to 15.01 million yuan [1] - The second quarter showed a decline in revenue of 10.33% year-on-year, with total revenue of 97.29 million yuan and a net profit of 9.89 million yuan, down 33.65% [1] - The company's accounts receivable are significant, with accounts receivable amounting to 228.66% of the latest annual net profit [6] Financial Performance - Gross margin decreased to 31.53%, down 12.21% year-on-year, while net margin fell to 7.82%, a decrease of 16.82% [1] - Total selling, administrative, and financial expenses amounted to 28.33 million yuan, accounting for 15.31% of revenue, which is a decrease of 11.36% year-on-year [1] - Earnings per share (EPS) was 0.09 yuan, down 18.18% year-on-year, while the net asset value per share increased by 1.96% to 4.53 yuan [1] Cash Flow and Investment - The net cash flow from operating activities increased by 276.9%, attributed to higher customer payments and reduced severance payments due to relocation [5] - The net cash flow from investing activities rose by 93.68%, driven by the recovery of previous investments and increased holdings in financial products [5] - The net cash flow from financing activities increased by 97.12%, influenced by share buybacks in the previous year [5] Changes in Financial Items - Cash and cash equivalents increased by 65.51% due to the recovery of investment funds [2] - Trading financial assets surged by 122.79% as the company increased its holdings in financial products [2] - Other current assets decreased by 57.07% due to a reduction in endorsed but not terminated bills [2] - Accounts payable decreased by 29.19% as a result of reduced payments for engineering procurement [2] - Contract liabilities increased by 67.15% due to an increase in advance payments for projects [2] Cost Structure - Operating costs increased by 7.13% due to depreciation from new facilities and equipment [3] - Selling expenses decreased by 11.66% due to a reduction in sales personnel [3] - Administrative expenses fell by 16.05% due to decreased severance payments related to relocation [3] - Financial expenses rose by 92.65% due to the appreciation of the RMB against the USD [3] Research and Development - R&D expenses slightly decreased by 0.67% as the company improved efficiency with advanced R&D equipment and reduced material consumption [4] Business Model and Return on Investment - The company's return on invested capital (ROIC) was 4.68%, indicating weak capital returns, with a net margin of 9.84% suggesting average value addition [5] - Historical data shows a median ROIC of 9.48% since the company went public, with the worst year being 2022 at 4.2% [5] - The company's performance is primarily driven by R&D, necessitating a thorough examination of the underlying factors [5]