Zhejiang Power New Energy (SH:688184) Zheng Quan Zhi Xing·2025-08-30 23:24Core Viewpoint - ST Pava (688184) reported a significant decline in revenue and a negative net profit for the first half of 2025, indicating ongoing financial struggles and a weak business model [1][3]. Financial Performance - Total revenue for the first half of 2025 was 239 million yuan, a decrease of 58.99% year-on-year [1]. - The net profit attributable to shareholders was -158 million yuan, an improvement of 52.61% compared to the previous year [1]. - In Q2 2025, total revenue was 159 million yuan, down 45.36% year-on-year, with a net profit of -102 million yuan, up 55.59% year-on-year [1]. - The gross margin was -16.63%, a decrease of 7.12% year-on-year, while the net margin was -66.23%, down 15.54% year-on-year [1]. - The total of selling, administrative, and financial expenses reached 42.99 million yuan, accounting for 17.98% of total revenue, an increase of 311.55% year-on-year [1]. Balance Sheet and Cash Flow - Cash and cash equivalents increased by 25.02% to 372 million yuan [1]. - Accounts receivable dropped by 84.02% to 34.2 million yuan [1]. - Interest-bearing debt surged by 637.72% to 155 million yuan [1]. - The company reported a negative operating cash flow per share of -1.03 yuan, a decrease of 45.1% year-on-year [1]. Business Model and Investment Returns - The company's historical return on invested capital (ROIC) has been low, with a median of 6.14% since its listing, and a particularly poor ROIC of -28.71% in 2024 [3]. - The business model relies heavily on R&D and capital expenditures, necessitating careful evaluation of the effectiveness of these investments [3]. Financial Health Indicators - The cash flow situation is concerning, with cash and cash equivalents covering only 75.44% of current liabilities [4]. - The average net cash flow from operating activities over the past three years has been negative, indicating ongoing financial challenges [4].