SUNWARD(SZ:002097) Zheng Quan Zhi Xing·2025-08-30 23:26Core Viewpoint - The recent financial report of Shanhe Intelligent (002097) shows a decline in total revenue but a significant increase in net profit, indicating mixed performance in the company's financial health [1]. Financial Performance - Total revenue for the first half of 2025 was 3.411 billion yuan, a decrease of 6.32% year-on-year [1]. - Net profit attributable to shareholders reached 49.881 million yuan, an increase of 46.12% year-on-year [1]. - In Q2 2025, total revenue was 1.898 billion yuan, down 4.11% year-on-year, while net profit was 17.4215 million yuan, up 29.03% year-on-year [1]. - The gross profit margin was 26.39%, a decrease of 0.66% year-on-year, while the net profit margin improved to 0.86%, an increase of 68.22% year-on-year [1]. - Total expenses (selling, administrative, and financial) amounted to 602 million yuan, accounting for 17.65% of revenue, a decrease of 14.47% year-on-year [1]. Balance Sheet and Cash Flow - The company reported a significant accounts receivable figure, with accounts receivable accounting for 9356.56% of the latest annual net profit [1]. - Cash and cash equivalents increased to 2.131 billion yuan, a rise of 6.32% year-on-year [1]. - The company’s earnings per share (EPS) was 0.05 yuan, an increase of 45.91% year-on-year, while operating cash flow per share was 0.04 yuan, a decrease of 52.82% year-on-year [1]. Business Model and Investment Returns - The company's return on invested capital (ROIC) was 2.37% last year, indicating weak capital returns, with a historical median ROIC of 3.25% over the past decade [2]. - The business model relies heavily on research and marketing, necessitating a thorough examination of the underlying drivers [2]. - The company has experienced two years of losses since its IPO, reflecting a fragile business model [2]. Debt and Financial Health - The company’s interest-bearing debt ratio reached 46.54%, with a negative average operating cash flow over the past three years [2]. - The cash flow situation is concerning, with cash and cash equivalents to current liabilities at only 25.42% [2].