XGMA(SH:600815) Zheng Quan Zhi Xing·2025-08-29 22:41Core Viewpoint - The financial performance of XG Company (厦工股份) for the first half of 2025 shows significant declines in revenue and net profit compared to the previous year, indicating potential challenges in its business operations and financial health [1][3]. Financial Performance Summary - Total revenue for the first half of 2025 was 311 million yuan, a decrease of 22.08% year-on-year [1]. - Net profit attributable to shareholders was 3.36 million yuan, down 43.82% year-on-year [1]. - In Q2 2025, total revenue was 177 million yuan, reflecting a 31.26% decline year-on-year [1]. - Q2 net profit attributable to shareholders was 2.29 million yuan, a decrease of 54.98% year-on-year [1]. - The gross margin was 16.94%, down 30.52% year-on-year, while the net margin was 4.59%, down 47.84% year-on-year [1]. - Total operating expenses (selling, administrative, and financial) amounted to 45.18 million yuan, accounting for 14.51% of revenue, an increase of 5.23% year-on-year [1]. Cash Flow and Receivables - The company reported a significant issue with accounts receivable, with the amount reaching 3738.05% of the latest annual net profit [1][4]. - The average operating cash flow over the past three years was only 18.77% of current liabilities, indicating potential liquidity concerns [4]. Historical Performance and Business Model - The company's return on invested capital (ROIC) was 2.6% last year, with a historical median ROIC of -6.97% over the past decade, suggesting poor investment returns [3]. - The company has experienced seven years of losses since its listing, raising concerns about its long-term viability [3]. - The business model relies heavily on research and development, marketing, and capital expenditures, necessitating careful evaluation of these investments [3].