Hangzhou Landscaping (SH:605303) Zheng Quan Zhi Xing·2025-08-30 23:27Core Insights - The company reported a total revenue of 288 million yuan for the first half of 2025, a year-on-year decrease of 10.61% [1] - The net profit attributable to shareholders was -74.43 million yuan, down 23.19% year-on-year [1] - The gross margin fell to 5.59%, a significant decline of 57.72% compared to the previous year [1] Financial Performance - Total revenue for 2024 was 322 million yuan, while for 2025 it decreased to 288 million yuan, reflecting a decline of 10.61% [1] - The net profit for 2024 was -60.42 million yuan, which worsened to -74.43 million yuan in 2025, marking a 23.19% decline [1] - The gross margin decreased from 13.22% in 2024 to 5.59% in 2025, indicating a drop of 57.72% [1] - The net profit margin also worsened from -18.44% in 2024 to -26.00% in 2025, a decline of 40.97% [1] Cash Flow and Debt - The company’s cash and cash equivalents decreased from 300 million yuan in 2024 to 180 million yuan in 2025, a decline of 40.10% [1] - Accounts receivable decreased slightly from 1.151 billion yuan to 1.092 billion yuan, a reduction of 5.13% [1] - Interest-bearing debt decreased from 191 million yuan to 134 million yuan, a decline of 29.70% [1] Operational Efficiency - The total of selling, administrative, and financial expenses was 33.94 million yuan, accounting for 11.78% of revenue, down 24.6% year-on-year [1] - The company’s return on invested capital (ROIC) has been historically low, with a median of 9.19% since its listing, and a worst year ROIC of -14.72% in 2022 [3] - The company has reported three years of negative cash flow from operating activities, indicating potential liquidity issues [4]