Huasun(SZ:000790) Zheng Quan Zhi Xing·2025-08-29 22:42Core Viewpoint - Huasheng Technology (000790) reported disappointing financial results for the first half of 2025, with significant declines in revenue and net profit compared to the previous year [1][3]. Financial Performance - Total revenue for the first half of 2025 was 292 million yuan, a decrease of 36.29% year-on-year [1]. - The net profit attributable to shareholders was -54.84 million yuan, representing a decline of 702.09% year-on-year [1]. - In Q2 2025, total revenue was 165 million yuan, down 40.85% year-on-year, and net profit was -40.25 million yuan, a decrease of 689.4% [1]. - The gross margin was 48.77%, an increase of 2.66% year-on-year, while the net margin was -18.7%, a drop of 714.92% year-on-year [1]. Expense Analysis - The combined expenses (selling, administrative, and financial) accounted for 64.5% of total revenue, an increase of 54.42% year-on-year, totaling 188 million yuan [1]. - The company's financial health is concerning, with cash flow per share at -0.03 yuan, a decrease of 706.21% year-on-year [1]. Business Model and Historical Performance - The company's return on invested capital (ROIC) was 0.63% last year, indicating weak capital returns [3]. - The historical median ROIC over the past decade was 3.31%, with two years of losses since its IPO, suggesting a fragile business model [3]. - The company relies heavily on marketing-driven performance, necessitating a deeper analysis of the underlying drivers [3]. Cash Flow and Debt Situation - The cash flow situation is concerning, with cash and cash equivalents to current liabilities ratio at 25.48%, and the average operating cash flow to current liabilities ratio at 11.6% over the past three years [3]. - The interest-bearing debt ratio has reached 21.77%, indicating potential debt-related risks [3].