KMYY(SH:600518) Zheng Quan Zhi Xing·2025-08-30 23:23Core Viewpoint - Kangmei Pharmaceutical (600518) reported a year-on-year increase in both revenue and net profit for the first half of 2025, indicating positive financial performance despite challenges in the industry [1]. Financial Performance - Total revenue for the first half of 2025 reached 2.577 billion yuan, a 4.17% increase compared to 2.474 billion yuan in the same period of 2024 [1]. - Net profit attributable to shareholders was 16.9014 million yuan, up 7.24% from 15.7603 million yuan in the previous year [1]. - In Q2 2025, total revenue was 1.278 billion yuan, reflecting a 0.39% increase year-on-year, while net profit for the quarter was 8.3956 million yuan, a 1.29% increase [1]. Profitability Metrics - Gross margin improved to 18.84%, a significant increase of 29.4% year-on-year [1]. - Net margin slightly decreased to 0.71%, down 2.96% from the previous year [1]. - Total expenses (selling, administrative, and financial) amounted to 480 million yuan, accounting for 18.61% of revenue, which is a 5.75% increase year-on-year [1]. Balance Sheet Highlights - Cash and cash equivalents increased to 903 million yuan, a 13.54% rise from 795 million yuan [1]. - Accounts receivable rose to 2.557 billion yuan, up 17.59% from 2.174 billion yuan [1]. - Interest-bearing debt significantly decreased to 47.393 million yuan, a reduction of 94.52% from 865 million yuan [1]. Cash Flow and Earnings - Earnings per share remained at 0.00 yuan, indicating no change [1]. - Operating cash flow per share improved to -0.01 yuan, a 74.25% increase from -0.02 yuan [1]. Business Evaluation - The company's return on invested capital (ROIC) was 0.22% last year, indicating weak capital returns [3]. - Historical data shows a median ROIC of 2.93% over the past decade, with a significant drop to -76.36% in 2020 [3]. - The business model relies heavily on research and marketing, necessitating a thorough examination of these driving factors [3]. Financial Health Indicators - Cash flow situation is concerning, with cash and cash equivalents to current liabilities at only 27.18% [3]. - Financial expenses have been a consistent issue, with negative net cash flow from operating activities over the past three years [3]. - Accounts receivable have reached an alarming ratio of 29,822.7% relative to profit, indicating potential liquidity issues [3].