Core Viewpoint - Huibo's recent financial report for the first half of 2025 shows a significant decline in total revenue while net profit has increased, indicating mixed performance amidst challenging market conditions [1]. Financial Performance Summary - Total revenue for the first half of 2025 is 879 million yuan, a decrease of 30.92% compared to 1.273 billion yuan in the same period of 2024 [1]. - Net profit attributable to shareholders is 44.39 million yuan, an increase of 44.56% from 30.71 million yuan in the previous year [1]. - Gross margin stands at 9.87%, down 30.54% year-on-year, while net margin has improved to 4.63%, up 145% [1]. - The total of selling, administrative, and financial expenses (three expenses) has increased by 39.75%, accounting for 16.42% of total revenue [1]. Key Financial Metrics - Earnings per share (EPS) increased to 0.03 yuan, a 50% rise from 0.02 yuan [1]. - Operating cash flow per share is -0.17 yuan, a decrease of 17.57% from -0.14 yuan [1]. - The company's net asset value per share is 1.8 yuan, down 5.03% from 1.9 yuan [1]. Changes in Financial Items - Cash and cash equivalents decreased by 33.48% due to reduced borrowings [1]. - Accounts receivable decreased by 36.26% as a result of increased collections from large projects [2]. - Contract assets increased by 34.26% due to revenue recognition from large projects [3]. - Short-term borrowings decreased by 29.86% due to increased repayments [3]. - Contract liabilities increased by 134.42% due to increased project collections [3]. Operational Insights - The company has faced challenges with new order signings, leading to a 30.92% decline in operating revenue [4]. - Financial expenses surged by 181.98% due to increased foreign exchange losses [4]. - The company has a historical median Return on Invested Capital (ROIC) of 4.28%, indicating weak investment returns [5].