Eagle Eye Warning: Xinhan New Materials' accounts receivable / operating income ratio continues to increase

Sina Finance Listed Company Research Institute | Financial Report Eagle Eye Warning

On March 17, Xinhan New Materials released its 2025 annual report, with an audit opinion of standard unqualified audit opinion.

The report shows that the company’s total operating revenue for 2025 was 444 million yuan, a year-on-year increase of 5.8%; net profit attributable to the parent was 66.61 million yuan, up 19.02% year-on-year; net profit after non-recurring gains and losses attributable to the parent was 55.73 million yuan, up 15.45%; basic earnings per share were 0.38 yuan/share.

Since listing in September 2021, the company has paid cash dividends five times, totaling 153 million yuan.

The listed company financial report Eagle Eye warning system conducts intelligent quantitative analysis of Xinhan New Materials’ 2025 annual report from four dimensions: performance quality, profitability, capital pressure and safety, and operational efficiency.

1. Performance Quality

During the reporting period, the company’s revenue was 444 million yuan, up 5.8% year-on-year; net profit was 66.61 million yuan, up 19.02%; net cash flow from operating activities was 76.19 million yuan, down 45.36%.

Overall performance analysis to focus on:

• Net profit shows volatility. In the last three annual reports, net profits were 90 million, 60 million, and 70 million yuan, with year-on-year changes of -12.72%, -40.04%, and +19.02%, respectively, indicating significant fluctuation.

From revenue, cost, and period expenses ratio perspective, focus on:

• Divergence between operating revenue and taxes and surcharges. During the reporting period, operating revenue increased by 5.8% year-on-year, while taxes and surcharges decreased by 7.72%, showing divergence.

Regarding operational asset quality, focus on:

• Accounts receivable to operating revenue ratio continues to grow. Over the last three annual reports, the ratios are 12.1%, 14.64%, and 15.48%, respectively, showing a steady increase.

From cash flow quality perspective, focus on:

• Divergence between operating revenue and net cash flow from operating activities. During the reporting period, operating revenue increased by 5.8% year-on-year, while net cash flow from operating activities decreased by 45.36%, indicating divergence.

2. Profitability

During the reporting period, the company’s gross profit margin was 26.65%, up 13.43% year-on-year; net profit margin was 15.01%, up 12.49%; return on equity (weighted) was 5.69%, up 14.72%.

From operational earnings perspective, focus on:

• Fluctuation in gross profit margin. In the last three annual reports, gross profit margins were 31.81%, 23.49%, and 26.65%, with changes of -11.91%, -26.16%, and +13.43%, respectively, indicating abnormal volatility.

• Growth in gross profit margin accompanied by decline in accounts receivable turnover rate. During the period, gross profit margin increased from 23.49% to 26.65%, while accounts receivable turnover decreased from 7.35 times to 6.82 times.

From asset-side earnings perspective, focus on:

• Return on net assets has been below 7% on average over the past three years. During the period, the weighted average return on net assets was 5.69%, with an average below 7% over the last three fiscal years.

• Return on invested capital below 7%. During the period, the company’s return on invested capital was 5.71%, with an average below 7% over the three reporting periods.

3. Capital Pressure and Safety

During the period, the company’s asset-liability ratio was 8.38%, down 1.24% year-on-year; current ratio was 8.39, quick ratio was 7.88; total debt was 10 million yuan, all short-term debt.

Overall financial status, focus on:

• Continuous decline in current ratio. Over the last three annual reports, current ratios were 8.51, 8.47, and 8.39, indicating weakening short-term debt-paying ability.

From short-term capital pressure perspective, focus on:

• Continuous decline in cash ratio. Over the last three annual reports, cash ratios were 7.78, 7.25, and 6.93.

From capital management perspective, focus on:

• Significant change in other payables. During the period, other payables were 1.104 million yuan, a 35.18% change from the beginning of the period.

4. Operating Efficiency

During the period, accounts receivable turnover was 6.82, down 7.22%; inventory turnover was 6.11, up 42.97%; total asset turnover was 0.35, up 2.44%.

From operational assets perspective, focus on:

• Accounts receivable to total assets ratio continues to grow. Over the last three annual reports, ratios are 4.34%, 4.9%, and 5.31%, respectively.

From long-term assets perspective, focus on:

• Significant changes in construction in progress. During the period, construction in progress was 60 million yuan, a 222.23% increase from the beginning of the period.

• Long-term deferred expenses changed significantly from the beginning of the period. During the period, long-term deferred expenses were 1.112 million yuan, a 52.33% increase.

Click on Xinhan New Materials Eagle Eye Warning to view the latest warning details and visualized financial report preview.

Sina Finance Listed Company Financial Report Eagle Eye Warning Introduction: The Eagle Eye Warning system is an intelligent professional analysis platform for listed company financial reports. It gathers authoritative financial experts from accounting firms and listed companies to track and interpret the latest financial reports from multiple dimensions such as performance growth, earnings quality, capital pressure and safety, and operational efficiency, providing visual alerts for potential financial risks. It offers professional, efficient, and convenient technical solutions for financial risk identification and early warning for financial institutions, listed companies, and regulatory authorities.

Eagle Eye Warning Access: Sina Finance APP - Market - Data Center - Eagle Eye Warning or Sina Finance APP - Stock Market Page - Financial - Eagle Eye Warning

Disclaimer: The market carries risks; investment should be cautious. This article is automatically published based on third-party databases and does not represent Sina Finance’s views. All information herein is for reference only and does not constitute personal investment advice. Please refer to official announcements for accuracy. For questions, contact biz@staff.sina.com.cn.