Core Viewpoint - The company Huakang Clean (301235) is facing challenges due to the investigation of its chairman, which has raised concerns about its operational stability and cash flow management [1][4]. Group 1: Company Management and Operations - Huakang Clean announced that its daily operations are managed by the executive team, and other board members and senior management are performing their duties normally [4]. - During the chairman's absence, the general manager, Xie Xinqiang, will assume the responsibilities of the chairman and legal representative [4]. - The company’s main business includes the research, design, implementation, and operation of cleanroom systems, as well as the sale of related medical equipment and consumables [4]. Group 2: 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%, and a net profit of 18.68 million yuan, marking a turnaround from losses [4]. - The net cash flow from operating activities was -294 million yuan, a decline of 74.03% year-on-year [4]. - The revenue primarily came from cleanroom system integration and medical consumables sales, with 22 projects delivered [4]. Group 3: Order Backlog and Cash Flow Challenges - As of June 30, the total order backlog was 3.827 billion yuan, with significant contributions from cleanroom integration projects [4]. - The company highlighted cash flow pressures due to the capital-intensive nature of its cleanroom system integration business, which requires substantial upfront funding [5]. - Delays in customer payments could lead to ongoing negative cash flow, posing a risk to operational liquidity [5]. Group 4: Strategic Responses - To address cash flow issues, Huakang Clean plans to enhance budget control, improve project initiation standards, and prioritize cash flow management [5][6]. - The finance department will continuously monitor short-term and long-term funding needs to maintain adequate cash reserves [6].