Core Viewpoint - Baitong Energy (001376) reported a decline in revenue and net profit for the first half of 2025 compared to the same period in 2024, while showing improvements in profitability metrics such as gross margin and net margin [1] Financial Performance Summary - Total revenue for the first half of 2025 was 526 million yuan, a decrease of 8.36% year-on-year [1] - Net profit attributable to shareholders was 98.83 million yuan, down 7.32% year-on-year [1] - In Q2 2025, total revenue was 255 million yuan, a decline of 11.39% year-on-year, with net profit of 48.18 million yuan, down 15.62% year-on-year [1] - Gross margin increased to 33.36%, up 5.84% year-on-year, while net margin rose to 18.78%, an increase of 1.11% year-on-year [1] Cost and Expense Analysis - Total selling, administrative, and financial expenses amounted to 51.07 million yuan, accounting for 9.71% of revenue, an increase of 17.8% year-on-year [1] - Significant changes in financial items included a 82.52% decrease in cash and cash equivalents due to increased cash outflows from investment and financing activities [3][6] - Accounts receivable decreased by 47.35% as a result of recovering receivables from major clients [3] Inventory and Investment Changes - Inventory decreased by 45.12% due to adjustments in procurement strategies [4] - Construction in progress increased by 84.1% as the company continued to invest in engineering projects [5] Borrowing and Financing Activities - Short-term borrowings decreased by 68.59% due to repayment of bank loans [5] - Lease liabilities decreased by 52.82% as a result of rent payments [5] - Cash flow from investment activities saw a significant decline of 369.08% due to increased purchases of bank financial products [5] Business Operations - The company has maintained its focus on providing centralized heating services to industrial parks and clusters since its establishment, with no major changes in its main business or products [6]