Core Viewpoint - New Yi Chang (688383) reported disappointing financial results for the first half of 2025, with significant declines in revenue and net profit compared to the previous year [1][4]. Financial Performance - Total revenue for the first half of 2025 was 402 million yuan, a decrease of 28.3% year-on-year [1]. - Net profit attributable to shareholders was 2.62 million yuan, down 96.05% from the previous year [1]. - In Q2 2025, total revenue was 175 million yuan, a decline of 41.14% year-on-year, with a net profit of -9.08 million yuan, a decrease of 124.31% [1]. - The gross margin was 32.94%, an increase of 1.09% year-on-year, while the net margin fell to 1.43%, down 87.24% [1]. - Total expenses (selling, administrative, and financial) amounted to 63.72 million yuan, accounting for 15.86% of revenue, an increase of 35.41% year-on-year [1]. Cash Flow and Debt - The net cash flow from operating activities decreased by 95.1%, attributed to reduced cash receipts from sales [3]. - The company’s interest-bearing debt increased by 32.54% to 978 million yuan [1]. - The cash and cash equivalents decreased by 17.22% to 211 million yuan [1]. Accounts Receivable - Accounts receivable reached 491 million yuan, a decrease of 30.6% year-on-year, but the ratio of accounts receivable to net profit was alarmingly high at 1212.51% [1][4]. Business Model and Market Position - The company’s return on invested capital (ROIC) was only 2.71%, indicating weak capital returns [4]. - The business relies heavily on research and marketing, necessitating a deeper analysis of these drivers [4]. Fund Holdings - The largest fund holding New Yi Chang is the Hua Fu Industrial Upgrade Flexible Allocation Mixed A Fund, with 500,000 shares held [5]. - The fund has shown a significant increase of 63.01% over the past year [5]. Orders and Market Outlook - The company reported good order conditions for its Mini LED products, with recent orders from major panel manufacturers [6]. - The execution of these orders may be affected by external macroeconomic changes and customer demand fluctuations [6].