MIHF(SH:600337) Zheng Quan Zhi Xing·2025-08-30 23:26Core Viewpoint - Meike Home's financial performance for the first half of 2025 shows a decline in revenue and an increase in net loss, indicating ongoing challenges in its business model and financial health [1][5]. Financial Performance Summary - Total revenue for the first half of 2025 was 1.5 billion yuan, a decrease of 8.11% year-on-year [1]. - The net profit attributable to shareholders was -879.815 million yuan, an increase in loss of 68.09% compared to the previous year [1]. - In Q2 2025, total revenue was 774 million yuan, down 4.51% year-on-year, with a net profit of -193 million yuan, a decline of 61.67% [1]. - The gross margin was 33.68%, down 13.41% year-on-year, while the net margin was -5.63%, an improvement of 66.37% [1]. - Total expenses (selling, administrative, and financial) amounted to 770 million yuan, accounting for 51.32% of revenue, a decrease of 13.68% year-on-year [1]. Cash Flow and Debt Analysis - The cash flow from operating activities showed a significant increase of 2283.26%, indicating improved cash management despite ongoing losses [4]. - The liquidity ratio was 0.84, indicating rising short-term debt pressure [1][7]. - The company’s cash and cash equivalents decreased by 67.49% year-on-year, highlighting liquidity concerns [1]. Accounts Receivable and Other Financial Metrics - Accounts receivable increased by 82.01% year-on-year, suggesting potential issues with cash collection [1][2]. - The company’s financial expenses decreased by 14.41%, reflecting reduced interest expenses [3]. - The research and development expenses decreased by 6.80%, indicating potential cutbacks in innovation efforts [4]. Business Model and Historical Performance - The company's business model relies heavily on research and marketing, which requires careful evaluation of underlying drivers [6]. - Historical performance shows a median Return on Invested Capital (ROIC) of 6.63% over the past decade, with a particularly poor ROIC of -9.43% in 2024 [5].