Financial Performance - Yuxing Co., Ltd. reported a net profit decline of 19.14% year-on-year for the first half of 2025, with total revenue of 475 million yuan, down 22.81% compared to the previous year [1] - The company's gross margin was -11.69%, a decrease of 79.08% year-on-year, while the net margin was -26.1%, down 54.37% year-on-year [1] - In Q2 2025, total revenue was 245 million yuan, reflecting a 28.69% decline year-on-year, and the net profit for the quarter was -67.49 million yuan, a 44.57% decrease year-on-year [1] Key Financial Metrics - The company's operating expenses, including sales, management, and financial costs, totaled 46.32 million yuan, representing a 70.26% increase year-on-year, accounting for 9.74% of revenue [1] - The earnings per share (EPS) was -0.33 yuan, down 13.11% year-on-year, and the operating cash flow per share was -0.15 yuan, a significant decrease of 597.58% year-on-year [1] - The company's cash and cash equivalents decreased by 33.95% to 479 million yuan, and accounts receivable fell by 33.09% to 157 million yuan [1] Investment Insights - The company has a weak historical return on invested capital (ROIC), with a median of 4.32% over the past decade, and the worst year being 2024 with an ROIC of -10.39% [3] - The company has been experiencing negative operating cash flow for the past three years, with an average cash flow to current liabilities ratio of -28.62% [3] - A notable fund manager, Miao Weibin from Jinyuan Shun'an Fund, has recently increased holdings in Yuxing Co., indicating some level of confidence despite the company's financial struggles [4]