Core Viewpoint - The financial performance of the company Tom Cat (300459) has significantly declined in the 2025 mid-year report, with a notable drop in both revenue and net profit compared to the previous year [1][3]. Financial Performance Summary - Total revenue for the first half of 2025 was 463 million yuan, a decrease of 19.62% year-on-year [1]. - The net profit attributable to shareholders was -30.33 million yuan, reflecting a year-on-year decline of 141.34% [1]. - The gross profit margin was 86.59%, down 2.31% from the previous year, while the net profit margin was -6.89%, a decrease of 154.24% [1]. - Total expenses (sales, management, and financial) amounted to 328 million yuan, accounting for 70.9% of revenue, an increase of 27.6% year-on-year [1]. - Earnings per share were -0.01 yuan, a decline of 150.0% compared to the previous year [1]. Cash Flow and Debt Analysis - The net cash flow from operating activities decreased by 51.93%, attributed to reduced cash received from sales [3]. - The company’s cash and cash equivalents decreased by 34.91% to 357 million yuan [3]. - The interest-bearing debt decreased by 11.70% to 1.563 billion yuan [1]. Business Evaluation - The company's historical return on invested capital (ROIC) has been relatively low, with a median ROIC of 9.01% since its listing [4]. - The company has experienced three years of losses since its IPO, indicating a fragile business model [4]. - The cash flow situation is concerning, with a cash to current liabilities ratio of only 22.63% [4]. Fund Holdings - The largest fund holding Tom Cat shares is the Southern CSI 1000 ETF, with 32.47 million shares, indicating a new entry into the top ten holdings [5]. - The fund has shown a significant increase in value, with a 65.64% rise over the past year [5]. Future Developments - The company is focusing on developing in-app purchase games, with recent products showing a year-on-year revenue growth of 27% and 24% in April and May respectively [6]. - New game products are in development, including "Tom Cat Town" and "Tom Cat Mobilization 2," aimed at enhancing user interaction and expanding the user base [6].