Kain Shares (002012) 2025 Annual Report Brief Analysis: Revenue and net profit both increased year-over-year, with a relatively large accounts receivable balance.

According to publicly available data organized by Securities Star, recently, Kain Co., Ltd. (002012) released its 2025 annual report. As of the end of this reporting period, the company’s total operating revenue was 627 million yuan, an increase of 6.17% year-on-year, and the net profit attributable to shareholders was 31.6983 million yuan, an increase of 452.16% year-on-year. Looking at the quarterly data, the total operating revenue for the fourth quarter was 189 million yuan, an increase of 15.3% year-on-year, and the net profit attributable to shareholders for the fourth quarter was 14.2764 million yuan, an increase of 213.63% year-on-year. During this reporting period, Kain Co., Ltd. had a large volume of accounts receivable, with accounts receivable accounting for 423.4% of the net profit attributable to shareholders in the latest annual report.

The data indicators released in this financial report performed well. Among them, the gross profit margin was 17.39%, a decrease of 6.07% year-on-year, the net profit margin was 8.47%, an increase of 129.39% year-on-year, and the total of selling expenses, administrative expenses, and financial expenses was 46.5179 million yuan, accounting for 7.42% of revenue, a decrease of 20.37% year-on-year. The net asset value per share was 3.33 yuan, an increase of 1.95% year-on-year, the operating cash flow per share was 0.08 yuan, a decrease of 50.24% year-on-year, and the earnings per share were 0.07 yuan, an increase of 600.0% year-on-year.

The reasons for the significant changes in financial items in the financial statements are explained as follows:

1. The change in management expenses was -18.29%, reason: the company’s refined management.
2. The change in net cash flow from operating activities was -50.24%, reason: the company’s cash paid for purchasing goods and accepting services increased compared to the same period last year.
3. The change in net cash flow from financing activities was 157.08%, reason: the cash paid for repaying bank loans decreased compared to the same period last year.
4. The change in the net increase in cash and cash equivalents was 94.25%, reason: changes in net cash flow from operating and financing activities.
5. The change in inventory was 38.06%, reason: the raw materials at the end of the period increased compared to the beginning of the period.
6. The change in construction in progress was -100.0%, reason: the construction in progress was transferred to fixed assets during this period.
7. The change in right-of-use assets was -55.11%, reason: right-of-use assets were depreciated on schedule.
8. The change in short-term borrowings was 166.09%, reason: the bank loans obtained during this period.
9. The change in contract liabilities was 53.48%, reason: the increase in advance payments for goods during this period.
10. The change in long-term borrowings was -49.95%, reason: the repayment of bank loans during this period.
11. The change in lease liabilities was -100.0%, reason: payment of rent during this period.
12. The change in trading financial assets was 37.87%, reason: the increase in bank wealth management products purchased during this period.
13. The change in receivable financing was 28.17%, reason: the increase in bank acceptance bills at the end of the period compared to the beginning.
14. The reason for changes in non-current assets due within one year: transferable large fixed-term deposits due within the next year were reclassified to this account in accordance with accounting standards.
15. The change in other non-current financial assets was 33.53%, reason: new investments in other non-current financial assets during this period.
16. The change in intangible assets was -30.45%, reason: disposal of intangible assets during this period.
17. The change in other non-current assets was 127.82%, reason: the increase in prepaid project payments and equipment payments compared to the beginning of the period.
18. The reason for changes in payable notes: the increase in bank acceptance bills issued during this period compared to the beginning.
19. The change in payable employee compensation was 27.16%, reason: the increase in compensation accrued during this period compared to the beginning.
20. The change in taxes payable was 55.78%, reason: taxes accrued on schedule had not yet been paid.

Securities Star’s value investment circle financial report analysis tool shows:

• Business Evaluation: The company’s ROIC last year was 2.37%, with a weak capital return rate. The net profit margin last year was 8.47%, indicating that the added value of the company’s products or services is average when considering all costs. From the historical annual report data, the median ROIC for the company over the past decade was 3.21%, showing weak median investment returns, with the worst year, 2024, having an ROIC of 0.57%, indicating average investment returns. The company’s historical financial reports have been quite average, with 21 annual reports since its listing, including one loss year, which requires careful study for any special reasons.

• Debt Repayment Ability: The company’s cash assets are very healthy.

• Business Model: The company’s performance mainly relies on R&D-driven growth. A careful study of the actual situations behind this driving force is necessary.

• Business Breakdown: The company’s net operating asset return rates over the past three years (2023/2024/2025) were 13.4%/5.8%/15.3%, with net operating profits of 53.2916 million/21.8046 million/53.1009 million yuan, and net operating assets of 398 million/374 million/347 million yuan.

  The company’s working capital/revenue over the past three years (2023/2024/2025) was 0.31/0.41/0.37, where the working capital (the money the company spends itself during its operations) was 258 million/239 million/234 million yuan, and the revenues were 826 million/591 million/627 million yuan.

The financial report health check tool shows:

1. It is recommended to pay attention to the company’s accounts receivable situation (accounts receivable/profit has reached 423.4%).

The above content is organized by Securities Star based on publicly available information and generated by AI algorithms (Internet Information Office Record No. 310104345710301240019), and does not constitute investment advice.