Economic Observation Network CIMC Group (02039. HK) disclosed its semi annual report, showing a slight increase in revenue but a decline in net profit attributable to shareholders. Its offshore business performed well, while its container business was under pressure.

Performance and business situation:
The core issue is that the semi annual report is lower than expected and cash flow has deteriorated. Revenue increased slightly by 3.71%, but net profit attributable to shareholders decreased significantly by 42%. What's even more striking is that operating cash flow increased directly from+7.15 billion in the same period last year to -560 million This contrast has raised doubts in the market about the quality of "increasing income without increasing profits". Quarterly net profit of 531 million yuan, a significant increase of 154% compared to the previous quarter The margin is positive.

Business progress:
Offshore engineering is a highlight: net profit increased by 155% year-on-year, new orders of 3.2 billion US dollars, and orders in hand reached a historical high The main drag is on containers: the price of standard containers has decreased+exchange losses, and financial expenses have surged by 82% year-on-year

The above content is based on publicly available information and does not constitute investment advice.