Taihe(SH:605081) Zheng Quan Zhi Xing·2025-08-28 22:59Core Insights - *ST Taihe reported a significant decline in financial performance for the first half of 2025, with total revenue of 33.05 million yuan, down 56.02% year-on-year, and a net profit attributable to shareholders of -57.07 million yuan, a decrease of 185.89% [1] - The company's gross margin plummeted to -6.4%, a drop of 115.25% compared to the previous year, indicating severe profitability issues [1] - The financial report highlights a substantial increase in operating expenses, with the combined total of sales, management, and financial expenses reaching 51.09 million yuan, accounting for 154.59% of total revenue, an increase of 152.39% year-on-year [1] Financial Performance Summary - Total revenue for 2025 was 33.05 million yuan, down from 75.15 million yuan in 2024, reflecting a 56.02% decline [1] - The net profit attributable to shareholders for 2025 was -57.07 million yuan, compared to -19.96 million yuan in 2024, marking a 185.89% increase in losses [1] - The gross margin for 2025 was -6.4%, a significant decrease from 41.96% in 2024, indicating a severe decline in profitability [1] - The net margin for 2025 was -177.06%, down from -26.55% in 2024, showing a drastic deterioration in financial health [1] - The company's cash flow situation is concerning, with cash and cash equivalents dropping to 107 million yuan, a 64.90% decrease from 306 million yuan in 2024 [2] Operational Insights - The company has shown a weak business model, with a historical median Return on Invested Capital (ROIC) of 17.58%, but a poor performance in 2024 with an ROIC of -27.64% [2] - The company has experienced three years of losses since its listing, indicating a fragile business model [2] - The cash flow situation is alarming, with cash and cash equivalents to current liabilities ratio at 57.73%, and the average operating cash flow over the past three years being -51.27% of current liabilities [2] - Inventory levels have reached 119.08% of revenue, raising concerns about inventory management [2]