TYSJ(SH:688033) Zheng Quan Zhi Xing·2025-08-30 23:23Core Insights - Tianyi New Materials (688033) reported a total revenue of 423 million yuan for the first half of 2025, a year-on-year decrease of 17.27%, while the net profit attributable to shareholders was -209 million yuan, an increase of 57.52% year-on-year [1] - The company's gross margin improved significantly, with a year-on-year increase of 74.95%, and the net margin also saw a rise of 49.21% year-on-year [1] - The second quarter of 2025 showed a total revenue of 190 million yuan, reflecting a year-on-year increase of 16.29%, and a net profit of -120 million yuan, which is an increase of 66.94% year-on-year [1] Financial Performance - Total revenue decreased from 511 million yuan in 2024 to 423 million yuan in 2025, a decline of 17.27% [1] - The net profit attributable to shareholders improved from -493 million yuan in 2024 to -209 million yuan in 2025, marking a 57.52% increase [1] - The gross margin was -4.88% in 2025, improving from -19.47% in 2024, while the net margin improved from -97.63% to -49.58% [1] - Total expenses (sales, management, and financial) amounted to 130 million yuan, accounting for 30.63% of revenue, an increase of 23.05% year-on-year [1] Cash Flow and Assets - Cash and cash equivalents decreased by 73.48%, from 676 million yuan to 179 million yuan [1] - Accounts receivable decreased by 33.42%, from 1.042 billion yuan to 694 million yuan [1] - Operating cash flow per share increased significantly by 328.42%, from 0.07 yuan to 0.29 yuan [1] Cost and Expenses - Operating costs decreased by 27.37%, attributed to a decline in prices and sales volume in the photovoltaic new energy sector [3] - Sales expenses decreased by 9.83% due to reduced salary costs [3] - Management expenses increased by 13.97% due to higher depreciation costs [4] - Financial expenses decreased by 15.85% due to reduced interest costs [4] Business Model and Investment Returns - The company's historical median ROIC since listing is 6%, indicating average investment returns, with the worst year being 2024 at -23.24% [5] - The business model relies heavily on capital expenditure, necessitating careful evaluation of capital projects and their financial viability [5] Recommendations - Attention is advised on the company's cash flow situation, with a cash to current liabilities ratio of only 11.74% [6] - Monitoring of financial expenses is recommended, as the average net cash flow from operating activities over the past three years has been negative [6]