Ningxia Building Materials (600449) 2025 Annual Report Brief Analysis: Net Profit Decreased by 24.57% Year-over-Year, Profitability Improved

According to publicly available data compiled by Securities Star, Ningxia Building Materials (600449) recently released its annual report for 2025. As of the end of this reporting period, the company had total operating revenue of 5.173 billion yuan, a year-on-year decrease of 40.22%, and a net profit attributable to shareholders of 182 million yuan, a year-on-year decrease of 24.57%. Looking at the quarterly data, the total operating revenue for the fourth quarter was 1.128 billion yuan, a year-on-year decrease of 40.03%, and the net profit attributable to shareholders for the fourth quarter was -39.32 million yuan, a year-on-year decrease of 155.71%. During this reporting period, the profitability of Ningxia Building Materials improved, with a gross profit margin increase of 85.05% year-on-year and a net profit margin increase of 30.34% year-on-year.

This data is below most analysts’ expectations, who previously anticipated a net profit of around 354 million yuan for 2025.

The various data indicators released in this financial report showed average performance. Among them, the gross profit margin was 13.56%, an increase of 85.05% year-on-year; the net profit margin was 3.48%, an increase of 30.34% year-on-year; the total sales, management, and financial expenses amounted to 306 million yuan, accounting for 5.92% of revenue, an increase of 59.23% year-on-year; the net asset value per share was 15.42 yuan, an increase of 1.33% year-on-year; the operating cash flow per share was 2.08 yuan, an increase of 56.51% year-on-year; and the earnings per share were 0.38 yuan, a decrease of 24.0% year-on-year.

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

1. The change in sales expenses was -13.34%, due to a decrease in employee compensation, travel expenses, sales service fees, and depreciation during the reporting period.
2. The change in management expenses was 1.88%, due to an increase in safety production fees and technical service fees accrued during the reporting period.
3. The change in R&D expenses was -31.52%, due to a decrease in capitalized R&D expenditures during the reporting period.
4. The change in financial expenses was -196.81%, due to a decrease in loans and the corresponding interest expenses accrued during the reporting period.
5. The change in net cash flow from operating activities was 56.51%, due to a smaller decline in cash received from sales of goods compared to the decline in cash paid for purchasing goods during the reporting period.
6. The change in net cash flow from investing activities was 530.68%, due to an increase in the redemption of structured deposit financial products during the reporting period.
7. The change in net cash flow from financing activities was -59.5%, due to a decrease in external borrowing during the reporting period.
8. The change in monetary funds was 274.99%, due to the redemption of structured deposit financial products maturing during the reporting period.
9. The change in trading financial assets was -99.99%, due to the redemption of structured deposit financial products maturing during the reporting period.
10. The change in receivables was -36.78%, due to the impact of clearing outstanding receivables during the reporting period.
11. The change in receivables financing was -61.51%, due to a decrease in bank acceptance bills in inventory during the reporting period.
12. The change in prepayments was -45.95%, due to a decrease in advance payments for raw materials during the reporting period.
13. The change in other receivables was -62.33%, due to a decrease in security deposit receivables during the reporting period.
14. The change in other current assets was 88.26%, due to an increase in the purchase of carbon emission rights assets during the reporting period.
15. The change in construction in progress was 137.88%, due to an increase in investment in construction projects during the reporting period.
16. The change in right-of-use assets was -49.54%, due to a decrease in leased assets and the impact of depreciation accrued during the reporting period.
17. The change in long-term deferred expenses was 119.68%, due to an increase in deferred water resource usage fees and forest vegetation restoration costs during the reporting period.
18. The change in deferred income tax assets was 33.41%, due to the recognition of deferred income tax from the asset impairment provision accrued during the reporting period.
19. The change in other non-current assets was -89.38%, due to a decrease in prepaid engineering and equipment payments during the reporting period.
20. The change in accounts payable was -33.7%, due to the impact of transportation payments during the reporting period.
21. The change in non-current liabilities due within one year was -99.63%, due to a decrease in long-term loans due within one year during the reporting period.
22. The change in other current liabilities was 285.2%, due to an increase in advance payments for goods awaiting turnover of output tax during the reporting period.
23. The change in lease liabilities was -53.53%, due to a decrease in payables for leased assets during the reporting period.
24. The change in special reserves was 35.25%, due to an increase in safety production fees accrued during the reporting period.
25. The change in operating revenue was -40.22%, due to a decrease in revenue from digital logistics business during the reporting period.
26. The change in operating costs was -44.24%, due to a decrease in corresponding costs recognized from the decrease in revenue from the digital logistics business during the reporting period.
27. The change in interest expenses was -45.33%, due to a decrease in loans and the corresponding interest expenses accrued during the reporting period.
28. The change in other income was -47.14%, due to a decrease in government subsidy funds during the reporting period.
29. The change in fair value changes in income was -83.53%, due to a decrease in fair value changes in other non-current financial assets and structured deposits during the reporting period.
30. The change in credit impairment losses was 103.7%, due to a decrease in credit impairment losses for accounts receivable during the reporting period.
31. The change in asset impairment losses was -2254.72%, due to the increase in asset impairment provision accrued for capacity replacement during the reporting period.
32. The change in gains from asset disposals was 127.96%, due to an increase in gains from disposals of fixed assets during the reporting period.
33. The change in income tax expenses was -35.51%, due to a decrease in total profit leading to a decline in corporate income tax provision during the reporting period.
34. The change in minority shareholders’ profit and loss was 81.83%, due to a decrease in losses from subsidiary companies during the reporting period.
35. The change in total comprehensive income attributable to minority shareholders was 81.67%, due to an increase in total comprehensive income from subsidiary companies during the reporting period.
36. The change in cash received from sales of goods and services was -38.6%, due to a decrease in cash received corresponding to the reduction in revenue from digital logistics business during the reporting period.
37. The change in tax refunds received was -50.89%, due to a decrease in tax refunds for comprehensive resource utilization during the reporting period.
38. The change in cash paid for purchasing goods and services was -56.92%, due to a decrease in cash paid corresponding to the reduction in revenue from digital logistics business during the reporting period.
39. The change in cash paid for other operating activities was 32.09%, due to a decrease in payments for accounts payable during the reporting period.
40. The change in cash received from investment recoveries was 53.37%, due to an increase in the redemption of structured deposit financial products during the reporting period.
41. The change in net cash received from disposals of fixed assets, intangible assets, and other long-term assets was 127.0%, due to an increase in disposals of fixed assets during the reporting period.
42. The change in cash received from borrowings was -48.47%, due to a decrease in external borrowing during the reporting period.
43. The change in cash paid for other financing activities was -58.07%, due to a decrease in payments for securities settlement account fees during the reporting period.
44. The change in net increase in cash and cash equivalents was 1395.48%, due to an increase in monetary funds from the redemption of structured deposit financial products during the reporting period.
45. The change in ending balance of cash and cash equivalents was 286.83%, due to an increase in monetary funds from the redemption of structured deposit financial products during the reporting period.

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

• Business Evaluation: The company’s ROIC last year was 2.14%, indicating weak capital returns. The net profit margin last year was 3.48%, suggesting low added value for the company’s products or services after accounting for all costs. Historical annual report data indicates that the median ROIC over the past 10 years is 7.21%, showing weak median investment returns, with the worst year being 2025 at an ROIC of 2.14%, indicating average investment returns. The company’s historical financial reports are relatively average.

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

• Business Breakdown: The company’s return on net operating assets over the past three years (2023/2024/2025) was 6.5%/4.8%/4%, with net operating profits of 328 million/231 million/180 million yuan, and net operating assets of 5.027 billion/4.849 billion/4.478 billion yuan.

  The company’s working capital/revenue (the funds the company needs to advance for every dollar of revenue generated during its operations) over the past three years (2023/2024/2025) was 0.01/0.02/0.02, with working capital (the money the company spends during its operations) of 129 million/181 million/112 million yuan, and revenues of 10.41 billion/8.653 billion/5.173 billion 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 506.41%).

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