SNC Net(SH:605398) Xin Lang Cai Jing·2025-08-29 00:02Core Viewpoint - New Jun Network (605398) 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 244 million yuan, a decrease of 6.66% year-on-year [1] - Net profit attributable to shareholders was 7.3 million yuan, down 60.5% year-on-year [1] - In Q2 2025, total revenue was 123 million yuan, a decline of 3.77% year-on-year, while net profit was 1.84 million yuan, down 79.95% [1] - Gross margin decreased to 39.0%, down 6.74% year-on-year, and net margin fell to 2.79%, down 60.65% [1] - Total operating expenses (selling, administrative, and financial) amounted to 39.03 million yuan, accounting for 16.01% of revenue, an increase of 23.79% year-on-year [1] Balance Sheet Highlights - Accounts receivable represented 277.92% of the latest annual net profit, indicating a significant collection issue [7] - Cash and cash equivalents decreased by 8.89% to 650 million yuan [1] - Total assets showed a decline in net asset value per share to 6.31 yuan, down 29.57% year-on-year [1] Cash Flow Analysis - Operating cash flow per share improved to 0.35 yuan, an increase of 179.15% year-on-year, indicating better cash collection efforts [1] - Net cash flow from operating activities increased by 210.44%, attributed to enhanced collection of project payments [6] Changes in Financial Items - Significant changes in financial items included a 85.82% decrease in notes receivable due to collections [3] - A 100% decrease in short-term borrowings as the company repaid domestic credit obligations [3] - Deferred income increased by 2047.4% due to government subsidies received [5] Business Model and Market Position - The company's return on invested capital (ROIC) was low at 1.23%, indicating weak capital returns [6] - The historical median ROIC since listing was 20.42%, suggesting that the current performance is below historical averages [6] - The business model relies heavily on research and marketing, necessitating further investigation into the underlying drivers of performance [6]