Core Viewpoint - JiaHua Technology (688051) reported disappointing financial results for the first half of 2025, with significant declines in revenue and net profit compared to the previous year [1] Financial Performance - Total revenue for the first half of 2025 was 109 million yuan, a decrease of 38.91% year-on-year [1] - The net profit attributable to shareholders was -40.88 million yuan, down 38.55% year-on-year [1] - In Q2 2025, total revenue was 53.85 million yuan, a decline of 31.89% year-on-year, with a net profit of -27.59 million yuan, down 37.08% year-on-year [1] - Gross margin decreased to 20.43%, down 23.56% year-on-year, while net margin was -39.12%, a drop of 138.05% year-on-year [1] - The total of financial, sales, and administrative expenses reached 38.19 million yuan, accounting for 34.9% of total revenue, an increase of 35.51% year-on-year [1] Key Financial Ratios - Earnings per share (EPS) was -0.53 yuan, a decrease of 39.47% year-on-year [1] - The company's net asset per share was 8.78 yuan, down 14.43% year-on-year [1] - Operating cash flow per share was -0.41 yuan, a decline of 27.75% year-on-year [1] Business Evaluation - The company's historical return on invested capital (ROIC) has been relatively low, with a median ROIC of 16.22% since its listing, and a worst year ROIC of -22% in 2022 [2] - The company has reported losses in four out of its eight years since going public, indicating a lack of consistent profitability [2] Cash Flow and Financial Health - The cash flow situation is concerning, with cash and cash equivalents covering only 49.48% of current liabilities [3] - The average net cash flow from operating activities over the past three years has been negative [3] New Business Initiatives - In 2025, the company launched a green low-carbon management platform aimed at enhancing carbon accounting precision and expanding market opportunities [4] - The platform is expected to attract more business collaborations and enhance the company's brand influence in the industry [4] - The initiative targets both large enterprises and small to medium-sized enterprises, aiming to broaden the customer base and drive overall business growth [4]