Core Viewpoint - Longyan Technology (301618) reported disappointing financial results for the first half of 2025, with significant declines in revenue and net profit compared to the previous year [1] Financial Performance - Total revenue for the first half of 2025 was 272 million yuan, a decrease of 8.22% year-on-year [1] - Net profit attributable to shareholders was 24.65 million yuan, down 45.05% year-on-year [1] - In Q2 2025, total revenue was 137 million yuan, a decline of 17.01% year-on-year [1] - Q2 2025 net profit attributable to shareholders was 8.40 million yuan, a decrease of 67.1% year-on-year [1] Key Financial Ratios - Gross margin was 30.28%, down 11.1% year-on-year [1] - Net margin was 9.05%, a decrease of 40.13% year-on-year [1] - Total expenses (selling, administrative, and financial) amounted to 36.29 million yuan, accounting for 13.33% of revenue, an increase of 18.61% year-on-year [1] Balance Sheet Highlights - Cash and cash equivalents increased to 281 million yuan, up 212.26% year-on-year [1] - Accounts receivable stood at 318 million yuan, a rise of 3.17% year-on-year [1] - Interest-bearing debt increased significantly to 45.65 million yuan, up 712.33% year-on-year [1] Earnings Per Share - Earnings per share (EPS) was 0.27 yuan, down 58.79% year-on-year [1] - Operating cash flow per share was 0.16 yuan, a decrease of 48.09% year-on-year [1] - Book value per share was 10.36 yuan, down 20.39% year-on-year [1] Return on Investment - The company's return on invested capital (ROIC) for the previous year was 8.82%, indicating average capital returns [3] - Historical median ROIC since listing is 17.77%, suggesting good investment returns over time [3] Accounts Receivable Concern - The accounts receivable to net profit ratio reached 453.61%, indicating potential liquidity issues [3]