Wetown Electric(SH:688226) Xin Lang Cai Jing·2025-09-30 09:59Core Viewpoint - The recent announcement by major shareholders of Weiteng Electric to reduce their stakes comes amid a significant decline in the company's financial performance, indicating potential concerns about its future prospects [1][3]. Financial Performance - In the first half of 2025, Weiteng Electric reported a net profit of 16.49 million yuan, a drastic decrease of 79.07% compared to the same period last year [2]. - The company's revenue for the first half of 2025 was 1.732 billion yuan, down 6.48% year-on-year, contrasting sharply with a revenue increase of 79.13% in the same period of 2024 [2]. - The second quarter of 2025 saw a net profit of only 3.19 million yuan, representing a staggering year-on-year decline of 92.66% [2]. Profitability Indicators - The gross profit margin for Weiteng Electric in the first half of 2025 was 11.62%, a decrease of 4.06 percentage points from the full year of 2024 and down 6.83 percentage points from the same period last year [2]. - Over the past decade, the company's gross profit margin has fallen by more than 20 percentage points from 31.99% in 2015 [2][3]. Debt and Cash Flow - The asset-liability ratio reached 64.25% in the first half of 2025, an increase from 62.94% at the end of the first quarter of 2025 [3]. - The operating net cash flow for the first half of 2025 was -116 million yuan, indicating a continued cash outflow [3]. Shareholder Actions - Major shareholders, Zhenjiang State-owned Investment Holding Group and Yangzhong Oasis New City Industrial Group, plan to reduce their holdings by up to 1% each, totaling a maximum of 2% of the company's total share capital, citing personal funding needs [1][3].