CEC CoreCast(SH:600764) Zheng Quan Zhi Xing·2025-08-29 22:42Core Viewpoint - China Haifang (600764) reported a strong performance in its 2025 mid-year financial results, with significant increases in revenue and net profit, although there are concerns regarding accounts receivable levels and cash flow [1][2]. Financial Performance - Total revenue for the first half of 2025 reached 1.385 billion yuan, a year-on-year increase of 19.64% compared to 1.158 billion yuan in 2024 [1]. - Net profit attributable to shareholders was 94.57 million yuan, up 25.48% from 75.37 million yuan in the previous year [1]. - In Q2 2025, total revenue was 874 million yuan, reflecting a 9.3% year-on-year increase, while net profit for the quarter was 63.28 million yuan, down 11.45% [1]. - The gross margin was 35.32%, a decrease of 3.12% year-on-year, while the net margin slightly improved to 7.35%, an increase of 0.49% [1]. - Total operating expenses (sales, management, and financial expenses) amounted to 176 million yuan, representing 12.69% of revenue, a decrease of 24.04% year-on-year [1]. Accounts Receivable and Cash Flow - The company has a high level of accounts receivable, with accounts receivable amounting to 4.275 billion yuan, which is 1874.94% of the net profit for the period [1][2]. - Operating cash flow per share was -0.23 yuan, a significant decline of 293.83% year-on-year [1]. Investment Metrics - The company's return on invested capital (ROIC) was 2.72%, indicating weak capital returns, with a historical median ROIC of 8.93% over the past decade [1]. - The company has experienced two years of losses since its IPO, suggesting a fragile business model [1]. Fund Holdings - The largest fund holding China Haifang is the Changcheng Jiujia Innovation Growth Mixed A fund, which holds 5 million shares and has recently entered the top ten holdings [3]. - Other funds have also adjusted their positions, with some increasing their holdings while others have reduced them [3].