WHMC(SH:600136) Zheng Quan Zhi Xing·2025-08-30 23:24Core Viewpoint - ST Mingcheng (600136) reported significant growth in revenue and net profit for the first half of 2025, indicating improved profitability despite some ongoing challenges [1][2]. Financial Performance - The total revenue for the reporting period reached 279 million yuan, a year-on-year increase of 596.55% [1] - The net profit attributable to shareholders was 999,000 yuan, up 104.62% year-on-year [1] - In Q2 alone, total revenue was 144 million yuan, reflecting a year-on-year increase of 391.72% [1] - The net profit for Q2 was -4.18 million yuan, but this still represented an 80% year-on-year improvement [1] - Gross margin increased by 21.15% year-on-year to 12.75% [1] - Net margin rose by 101.82% year-on-year to 1.53% [1] Cost Management - Total selling, administrative, and financial expenses amounted to 30.62 million yuan, accounting for 10.96% of revenue, a decrease of 85.86% year-on-year [1] - The company reported a decrease in earnings per share to 0.0 yuan, but this was a 100% increase year-on-year [1] Historical Context - The company has a historical median Return on Invested Capital (ROIC) of 5.16% over the past decade, indicating weak investment returns [2] - The worst year for ROIC was 2023, with a figure of -260.38% [2] - The company has reported losses in 7 out of 26 annual reports since its listing, suggesting a generally poor financial history [2] Cash Flow and Financial Health - The cash flow situation is concerning, with cash and cash equivalents to current liabilities at only 77.61% [2] - The average operating cash flow over the past three years relative to current liabilities is just 0.59% [2] - Financial expenses have reached 358.91% of the average operating cash flow over the past three years, indicating potential financial strain [2] - Accounts receivable and negative net profit in annual reports raise further concerns about financial stability [2]