Eagle Eye Warning: Parker New Materials' Revenue and Net Profit Diverge

Sina Finance Listed Company Research Institute | Earnings Hawk-Eye Early Warning

On March 17, Parker New Materials released its 2025 annual report.

The report shows that the company’s total operating revenue for full year 2025 was 3.543 billion yuan, up 10.28% year over year; net profit attributable to shareholders was 252 million yuan, down 4.37% year over year; net profit attributable to shareholders after non-recurring items was 216 million yuan, down 13.13% year over year; basic earnings per share were 2.0828 yuan per share.

Since listing in August 2020, the company has paid cash dividends 7 times, with cumulative cash dividends of 460 million yuan already implemented.

The Listed Company Earnings Hawk-Eye Early Warning System conducts intelligent quantitative analysis of Parker New Materials’ 2025 annual report across four major dimensions: performance quality, profitability, funding pressure and security, and operating efficiency.

I. Performance Quality

During the reporting period, the company’s revenue was 3.543 billion yuan, up 10.28%; net profit was 252 million yuan, down 4.37%; net cash flow from operating activities was 829 million yuan, up 39.49%.

From the overall performance perspective, key areas to focus on are:

• Operating revenue and net profit moving in opposite directions. During the reporting period, operating revenue increased 10.28% year over year, while net profit decreased 4.37% year over year; operating revenue and net profit moved in opposite directions.

In light of the quality of operating assets, key areas to focus on are:

• Inventory growth outpaces growth in operating costs. During the reporting period, inventories increased 20.78% compared with the beginning of the period, while operating costs grew 14.23% year over year; inventory growth outpaced operating cost growth.

• Inventory growth outpaces growth in operating revenue. During the reporting period, inventories increased 20.78% compared with the beginning of the period, while operating revenue increased 10.28% year over year; inventory growth outpaced operating revenue growth.

II. Profitability

During the reporting period, the company’s gross margin was 15.76%, down 15.63% year over year; net profit margin was 7.12%, down 13.28% year over year; return on net assets (weighted) was 5.61%, down 6.5% year over year.

In light of returns from the company’s operating side, key areas to focus on are:

• Sales gross margin continues to decline. In the past three annual reports, sales gross margins were 23.89%, 18.68%, and 15.76% respectively, with the downward trend continuing.

• Sales net profit margin continues to decline. In the past three annual reports, sales net profit margins were 13.6%, 8.21%, and 7.12% respectively, with the downward trend continuing.

In light of returns from the company’s asset side, key areas to focus on are:

• Return on net assets continues to decline. In the past three annual reports, weighted average return on net assets was 12.07%, 6.0%, and 5.61% respectively, with the downward trend continuing.

• Return on invested capital is below 7%. During the reporting period, the company’s return on invested capital was 5.24%, and the average across the three reporting periods was below 7%.

III. Funding Pressure and Security

During the reporting period, the company’s asset-liability ratio was 44.35%, up 13.74% year over year; the current ratio was 1.95, and the quick ratio was 1.51; total debt was 2.08 billion yuan, of which short-term debt was 1.94 billion yuan, with short-term debt accounting for 93.27% of total debt.

From the overall financial position, key areas to focus on are:

• Asset-liability ratio continues to grow. In the past three annual reports, the asset-liability ratio was 35.12%, 38.99%, and 44.35% respectively, with an upward trend.

• Current ratio continues to decline. In the past three annual reports, the current ratio was 2.52, 2.12, and 1.95 respectively, indicating weakening short-term solvency.

From short-term funding pressure, key areas to focus on are:

• Cash ratio continues to decline. In the past three annual reports, the cash ratio was 1.26, 1.03, and 0.87 respectively, continuing to decline.

IV. Operating Efficiency

During the reporting period, the company’s accounts receivable turnover ratio was 2.48, up 1.53% year over year; inventory turnover ratio was 2.51, down 4.41% year over year; total asset turnover ratio was 0.46, down 1.17% year over year.

In light of operating assets, key areas to focus on are:

• Inventory turnover ratio continues to decline. In the past three annual reports, inventory turnover ratios were 3.04, 2.62, and 2.51 respectively, indicating weakening inventory turnover capability.

• Inventory/total assets ratio continues to increase. In the past three annual reports, the inventory/total assets ratio was 13.81%, 14.9%, and 15.84% respectively, continuing to increase.

In light of long-term assets, key areas to focus on are:

• Total asset turnover ratio continues to decline. In the past three annual reports, total asset turnover ratios were 0.57, 0.46, and 0.46 respectively, indicating weakening total asset turnover capability.

• Fixed assets have changed significantly. During the reporting period, fixed assets were 1.46 billion yuan, up 30.34% from the beginning of the period.

• Revenue from fixed assets per unit declines year by year. In the past three annual reports, the ratio of operating revenue to original value of fixed assets was 3.83, 2.86, and 2.42 respectively, continuing to decline.

• Construction in progress has changed significantly. During the reporting period, construction in progress was 630 million yuan, up 73.75% from the beginning of the period.

Click Parker New Materials’ Hawk-Eye Early Warning to view the latest warning details and a visual preview of the financial report.

Sina Finance Listed Company Earnings Hawk-Eye Early Warning overview: The Listed Company Earnings Hawk-Eye Early Warning is a professional intelligent analysis system for listed company financial reports. By gathering large numbers of authoritative financial experts, including accounting firms and listed companies, the Hawk-Eye Early Warning tracks and interprets the latest financial reports of listed companies across multiple dimensions such as company earnings growth, earnings quality, funding pressure and security, and operating efficiency, and uses text and graphics to highlight potential financial risk points. It provides professional, efficient, and convenient technical solutions for identifying and issuing early warnings on financial risks of listed companies for financial institutions, listed companies, regulatory bodies, and others.

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