Financial Performance - ST Yundong reported a net profit decline of 43.18% year-on-year, with a total revenue of 2.82 billion yuan, down 9.85% compared to the previous year [1] - The company's gross margin decreased to 6.36%, a drop of 32.23% year-on-year, while the net margin fell to -5.12%, down 58.64% [1] - In Q2, total revenue was 1.32 billion yuan, a decrease of 4.94% year-on-year, and the net profit for the quarter was -1.18 billion yuan, down 29.81% [1] Key Financial Metrics - The company's total expenses (selling, administrative, and financial) amounted to 208 million yuan, accounting for 7.39% of revenue, a decrease of 8.65% year-on-year [1] - Earnings per share (EPS) was -0.07 yuan, a decline of 42.31% year-on-year, and the operating cash flow per share was -0.18 yuan, down 33.51% [1] - The company's net asset value per share decreased to 0.77 yuan, a drop of 45.42% year-on-year [1] Business Model and Historical Performance - The company's business model relies heavily on research and development, but historical financial data indicates a weak return on invested capital (ROIC) with a median of 2.96% over the past decade [3] - The company has reported losses in three out of the 25 annual reports since its listing, indicating a fragile business model [3] - The most significant loss year was 2022, with an ROIC of -17.89%, highlighting poor investment returns [3] Cash Flow and Debt Situation - The cash flow situation is concerning, with cash and cash equivalents covering only 28.16% of current liabilities, and the average operating cash flow over the past three years being negative [3] - The company has a debt ratio of 50.31% for interest-bearing liabilities, indicating a high level of financial leverage [3] - Financial expenses have been consistently negative over the past three years, raising concerns about the company's financial health [3]