FLDT(SH:600228) Zheng Quan Zhi Xing·2025-08-28 23:06Core Viewpoint - *ST Fanli (600228) reported a significant increase in total revenue but a drastic decline in net profit for the first half of 2025, indicating potential financial distress and operational challenges [1]. Financial Performance - Total revenue for the first half of 2025 reached 186 million yuan, a year-on-year increase of 36.01% compared to 137 million yuan in 2024 [1]. - The net profit attributable to shareholders was -33.28 million yuan, reflecting a staggering year-on-year decline of 1089.13% from a profit of 3.36 million yuan in 2024 [1]. - The gross margin decreased to 39.26%, down 22.79% year-on-year, while the net margin fell to -17.89%, a decline of 827.22% [1]. - Total expenses (selling, administrative, and financial) amounted to 93.04 million yuan, accounting for 50.01% of total revenue, which is an increase of 30.48% year-on-year [1]. Cash Flow and Assets - The company reported a negative operating cash flow of -0.16 yuan per share, a significant decrease of 1804.80% compared to -0.01 yuan per share in the previous year [1]. - Cash and cash equivalents decreased to 338 million yuan, down 10.49% from 378 million yuan [1]. - Accounts receivable increased by 49.38% to 97.78 million yuan, indicating potential issues with cash collection [1]. Investment Returns - The company's historical return on invested capital (ROIC) has been weak, with a median of 3.48% over the past decade, and a particularly poor performance in 2016 with a ROIC of -18.56% [3]. - The company has reported losses in 9 out of 26 annual reports since its listing, suggesting a challenging investment profile [3]. Business Model and Debt Servicing - The company's business model is primarily driven by marketing efforts, necessitating a thorough examination of the underlying drivers of this approach [4]. - The company maintains a healthy cash asset position, which is crucial for its debt servicing capabilities [4].