Core Viewpoint - Dahu Water Industry Co., Ltd. is facing significant revenue declines, particularly in its main freshwater fish division, indicating potential challenges in sustaining its economic scale as a listed company [5][6][18]. Company Overview - Dahu Water Industry Co., Ltd. was established in 1999 and listed on the Shanghai Stock Exchange in June 2000, focusing on a comprehensive freshwater fishery industry chain from lake to table [1]. - The company is now emphasizing the health industry, providing health products and medical services, including organic aquatic products and health care services [1]. Financial Performance - In the first half of 2025, the company's revenue decreased by 14.4% year-on-year, continuing a trend of revenue decline [5]. - The largest revenue drop occurred in the "aquaculture division," which is critical for the company's overall performance [6]. - Only the smaller markets in North China and Northeast China showed growth, while the core markets, especially Central South, experienced significant declines [8]. - The company has faced losses in most years, with only a few years showing minimal profits, indicating ongoing financial strain [9]. Profitability Metrics - The gross profit margin has remained relatively stable, with fluctuations primarily due to revenue volatility affecting the company's ability to achieve consistent profitability [11]. - The aquaculture division's gross profit margin increased significantly in the first half of 2025, contributing to an overall improvement in average gross margin [13]. - The company has managed to maintain profitability in most quarters, but the profit margins are limited, making it vulnerable to losses from asset impairment and other factors [20]. Cash Flow and Debt Management - The net cash flow from operating activities appears strong, outpacing net profit, and the company has not engaged in large-scale fixed asset investments recently [22]. - Despite ongoing losses, the company maintains good short-term and long-term debt repayment capabilities, largely due to a reduction in total assets [24].