LZRJ(SH:688588) Zheng Quan Zhi Xing·2025-08-29 22:41Core Viewpoint - Lingzhi Software (688588) reported mixed financial results for the first half of 2025, with a decline in total revenue but a significant increase in net profit, indicating potential operational challenges and improved profitability metrics [1][3]. Financial Performance - Total revenue for the first half of 2025 was 516 million yuan, a decrease of 3.04% year-on-year [1]. - Net profit attributable to shareholders reached 112 million yuan, showing a substantial increase of 1002.2% compared to the previous year [1]. - In Q2 2025, total revenue was 263 million yuan, down 0.15% year-on-year, while net profit for the quarter was 46.44 million yuan, up 132.35% [1]. Profitability Metrics - Gross margin was reported at 26.91%, a decrease of 12.14% year-on-year [1]. - Net margin improved significantly to 21.72%, an increase of 1042.67% year-on-year [1]. - Earnings per share (EPS) rose to 0.29 yuan, reflecting an increase of 866.67% year-on-year [1]. Cost and Expense Analysis - Total selling, administrative, and financial expenses amounted to -22.70 million yuan, representing a decrease of 116.11% year-on-year as a percentage of revenue [1]. - Operating cash flow per share was reported at 0.04 yuan, a decline of 76.94% year-on-year [1]. Balance Sheet Insights - Accounts receivable increased to 133 million yuan, up 3.80% year-on-year, with accounts receivable to net profit ratio at 106.67% [1][3]. - Interest-bearing liabilities rose significantly to 380 million yuan, an increase of 119.08% year-on-year [1]. Investment Returns - The company's return on invested capital (ROIC) for the previous year was 8.64%, indicating average capital returns [3]. - Historical median ROIC since listing stands at 15.44%, with the lowest recorded ROIC in 2023 at 6.22% [3]. Analyst Expectations - Analysts project that Lingzhi Software's performance for 2025 will reach 250 million yuan in revenue, with an average EPS forecast of 0.62 yuan [3].