Core Viewpoint - The company Huakang Clean (301235) is facing a significant event with its chairman being investigated, but the management assures that operations remain stable and the company has shown a turnaround in financial performance this year [1][4]. Financial Performance - In the first half of the year, Huakang Clean achieved a revenue of 835 million yuan, representing a year-on-year increase of 50.73% [4]. - The net profit for the same period was 18.68 million yuan, marking a turnaround from previous losses [4]. - However, the net cash flow from operating activities was -294 million yuan, a decline of 74.03% year-on-year [4]. Business Operations - The company’s main business includes the research, design, implementation, and operation of purification systems, as well as the sale of medical equipment and consumables [4]. - As of June 30, the total order backlog was 3.827 billion yuan, primarily from purification integration projects [4]. Cash Flow Challenges - Huakang Clean faces cash flow pressure due to the capital-intensive nature of its purification system integration business, which requires significant upfront investment [5]. - The company is implementing measures to improve cash flow management, including stricter project initiation standards and monitoring of cash flow forecasts [5]. Market Position - As of August 13, Huakang Clean's stock price was 32.27 yuan per share, with a total market capitalization of 3.48 billion yuan [6].

Core Insights - Huakang Clean (301235.SZ) reported a significant increase in revenue and net profit for the first half of the year, with revenue reaching 834.91 million yuan, a year-on-year growth of 50.73% [1] - The net profit attributable to shareholders was 18.68 million yuan, reflecting a remarkable year-on-year increase of 273.48% [1] - The company’s net profit after deducting non-recurring gains and losses was 19.60 million yuan, up 216.16% year-on-year [1] Financial Performance - The company experienced a net cash flow from operating activities of -294.27 million yuan, a decline of 74.03% compared to the previous year [1] - The weighted average return on net assets was 1.04%, an increase of 1.66% from the same period last year [1] - Total assets at the end of the reporting period were 3.78 billion yuan, a decrease of 10.57% from the beginning of the period [1] - The net assets attributable to shareholders were 1.75 billion yuan, down 2.86% from the start of the period [1] Business Segments - Revenue was primarily generated from purification system integration and medical consumables sales [1] - The company successfully delivered 22 projects during the reporting period [1] - As of the end of the reporting period, the company had an order backlog of 3.83 billion yuan, mainly from purification integration business, including 2.54 billion yuan in medical special orders, 774 million yuan in laboratory orders, and 121 million yuan in electronic clean orders, indicating a balanced structure among "medical special - laboratory - electronic clean" [1]