CH AUTO(SH:605018) Zheng Quan Zhi Xing·2025-08-28 22:59Core Viewpoint - Longhua Group reported disappointing financial results for the first half of 2025, with significant declines in revenue and net profit compared to the previous year [1] Financial Performance - Total revenue for the first half of 2025 was 950 million yuan, a decrease of 17.77% year-on-year [1] - Net profit attributable to shareholders was 33.36 million yuan, down 46.14% year-on-year [1] - In Q2 2025, total revenue was 527 million yuan, a decline of 7.43% year-on-year, while net profit increased by 55.95% to 26.57 million yuan [1] - Gross margin improved to 13.49%, up 13.09% year-on-year, while net margin decreased to 3.51%, down 34.5% year-on-year [1] - Total operating expenses were 52.69 million yuan, accounting for 5.55% of revenue, an increase of 17.14% year-on-year [1] Accounts Receivable and Cash Flow - Accounts receivable reached 322 million yuan, representing 282.82% of the latest annual net profit [1] - Operating cash flow per share was 0.24 yuan, a decrease of 56.6% year-on-year [1] Business Model and Investment Returns - The company's return on invested capital (ROIC) was 4.02% last year, indicating weak capital returns [3] - Historical data shows a median ROIC of 11.23% since the company went public, with the worst year being 2023 at 3.87% [3] Strategic Focus and Market Development - The company aims to strengthen its core business while expanding partnerships with customers and exploring new applications in sectors like photovoltaics and energy storage [5] - The company has secured over 1 billion yuan in new contracts in 2025, with total new contracts exceeding 2 billion yuan [5] - Ongoing capital projects are expected to enhance production capacity and operational efficiency in the future [5]