LNGF(SZ:002717) Zheng Quan Zhi Xing·2025-08-30 23:26Core Viewpoint - ST Lingnan (002717) reported a significant decline in revenue and a negative net profit for the first half of 2025, indicating ongoing financial struggles and increased operational costs [1] Financial Performance Summary - Total revenue for the first half of 2025 was 179 million yuan, a decrease of 70.79% compared to 612 million yuan in the same period of 2024 [1] - The net profit attributable to shareholders was -128 million yuan, an improvement of 50.02% from -257 million yuan in the previous year [1] - In Q2 2025, total revenue was 111 million yuan, down 63.78% year-on-year, while the net profit attributable to shareholders was -61.88 million yuan, up 62.84% from the previous year [1] Cost and Expense Analysis - The proportion of three major expenses (financial, sales, and management) significantly increased, totaling 195 million yuan, which accounted for 109.3% of total revenue, a year-on-year increase of 167.6% [1] - The gross margin was -10.69%, a decrease of 347.18% compared to the previous year's gross margin of 4.32% [1] - The net margin was -73.57%, down 72.75% from -42.59% in the previous year [1] Asset and Cash Flow Metrics - The company's cash and cash equivalents decreased to 141 million yuan, a decline of 40.32% from 237 million yuan [1] - Accounts receivable decreased to 2.073 billion yuan, down 19.53% from 2.576 billion yuan [1] - Interest-bearing liabilities decreased to 3.629 billion yuan, a reduction of 21.08% from 4.598 billion yuan [1] - The net asset value per share was 0.51 yuan, down 50.83% from 1.05 yuan [1] - Operating cash flow per share was 0.05 yuan, an increase of 194.7% from -0.06 yuan [1] Historical Performance Insights - The company's historical financial performance has been generally poor, with a median ROIC of 3.98% over the past decade and a particularly low ROIC of -15.76% in 2022 [1] - The company has reported losses in four out of ten years since its listing, indicating a weak investment profile [1] Cash Flow and Debt Concerns - The cash flow situation is concerning, with cash and cash equivalents to current liabilities ratio at only 2.17% and a negative average operating cash flow to current liabilities ratio of -3.82% over the past three years [2] - The interest-bearing debt ratio has reached 26.14%, with negative average operating cash flow over the past three years [2] - Financial expenses have been a consistent issue, with negative net cash flow from operating activities over the past three years [2]