Core Insights - Guansheng Co., Ltd. reported a moderate growth in operating performance for the first half of 2025, with revenue of 2.034 billion yuan, an increase of 8.22% year-on-year, and a net profit attributable to shareholders of 162 million yuan, up 2.73% year-on-year [1] Financial Performance - The company's net profit margin decreased from 8.25% in the first half of 2024 to 7.82%, while the gross profit margin fell from 26.48% to 25.28%. The return on equity also declined by 1.15 percentage points to 6.24%, indicating a deterioration in profit quality [3] Operational Efficiency - Guansheng Co., Ltd. faced challenges with inventory turnover efficiency, with inventory turnover days increasing by 25.75% to 101.52 days compared to the same period last year, indicating increased inventory management pressure. The net cash flow from operating activities was -95 million yuan, an improvement from -267 million yuan in 2024 but still negative, reflecting pressure on operating cash flow. Additionally, the debt-to-asset ratio for the first half of 2025 was 56.49%, up 2.18 percentage points year-on-year, suggesting an increased debt burden [5] Institutional Holdings - As of the first half of 2025, the number of institutions holding Guansheng Co., Ltd. stock decreased to 17 from 67 in the same period of 2024, indicating a significant drop in institutional investor interest. The company's current market capitalization is 7.922 billion yuan, with a year-to-date stock price increase of 58.39%. However, improvements in profit quality and operating cash flow are still needed [7]