Eagle Eye Warning: Wan Nian Qing's revenue decline

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

On March 26, Wan Nianqing released its annual report for 2025.

The report shows that the company’s total revenue for 2025 was 4.556 billion yuan, a year-on-year decrease of 23.06%; the net profit attributable to the parent company was 29.0169 million yuan, a year-on-year increase of 120.35%; the net profit attributable to the parent company after deducting non-recurring gains and losses was -168 million yuan, a year-on-year decrease of 452.91%; and the basic earnings per share was 0.0378 yuan/share.

Since its listing in September 1997, the company has paid cash dividends 20 times, with a total cash dividend of 3.584 billion yuan.

The listed company’s financial report eagle eye warning system conducts intelligent quantitative analysis of Wan Nianqing’s 2025 annual report from four dimensions: performance quality, profitability, financial pressure and safety, and operational efficiency.

I. Performance Quality Aspect

During the reporting period, the company’s revenue was 4.556 billion yuan, a year-on-year decrease of 23.06%; net profit was -28.4025 million yuan, a year-on-year decrease of 247.9%; and net cash flow from operating activities was 549 million yuan, a year-on-year decrease of 26.56%.

From an overall performance perspective, key areas to focus on include:

• Decline in operating revenue. During the reporting period, operating revenue was 4.56 billion yuan, a year-on-year decrease of 23.06%.

• Continuous decline in net profit attributable to the parent company after deducting non-recurring gains and losses. In the last three annual reports, the year-on-year changes in net profit attributable to the parent company after deducting non-recurring gains and losses were -49.08%, -116.73%, -452.91%, showing a continuous downward trend.

| Item | 20231231 | 20241231 | 20251231 | | Non-recurring Net Profit (yuan) | 18.2 million | -30.4126 million | -168 million | | Non-recurring Profit Growth Rate | -49.08% | -116.73% | -452.91% |

• First loss in net profit in three years. During the reporting period, net profit was negative, at -30 million yuan.

| Item | 20231231 | 20241231 | 20251231 | | Net Profit (yuan) | 315 million | 19.2042 million | -28.4025 million |

Considering cash flow quality, key areas to focus on include:

• Continuous decline in net cash flow from operating activities. In the last three annual reports, net cash flow from operating activities was 760 million yuan, 750 million yuan, and 549 million yuan, continuing to decline.

II. Profitability Aspect

During the reporting period, the company’s gross profit margin was 15.26%, a year-on-year decrease of 12.49%; the net profit margin was -0.62%, a year-on-year decrease of 292.23%; and the return on equity (weighted) was 0.43%, a year-on-year increase of 126.32%.

From the company’s operational side regarding earnings, key areas to focus on include:

• Continuous decline in sales gross profit margin. In the last three annual reports, the sales gross profit margins were 18.43%, 17.33%, and 15.26%, showing a continuous downward trend.

• Continuous decline in sales net profit margin. In the last three annual reports, the sales net profit margins were 3.85%, 0.32%, and -0.62%, showing a continuous downward trend.

| Item | 20231231 | 20241231 | 20251231 | | Sales Net Profit Margin | 3.85% | 0.32% | -0.62% | | Sales Net Profit Margin Growth Rate | -25.78% | -91.62% | -293.38% |

From the company’s asset side regarding earnings, key areas to focus on include:

• Average return on equity over the last three years is below 7%. During the reporting period, the weighted average return on equity was 0.43%, and the average weighted return on equity for the last three accounting years was below 7%.

• Return on invested capital below 7%. During the reporting period, the company’s return on invested capital was 1.45%, with the average over the three reporting periods below 7%.

From the perspective of potential impairment risks, key areas to focus on include:

• Goodwill change rate exceeds 30%. During the reporting period, the goodwill balance was 50 million yuan, with a change rate from the beginning of the period of -45.28%.

From the perspective of customer concentration and minority shareholders, key areas to focus on include:

• Minority shareholder losses are negative while net profit attributable to the parent company is positive. During the reporting period, minority shareholder losses were -60 million yuan, while net profit attributable to the parent company was 30 million yuan.

| Item | 20231231 | 20241231 | 20251231 | | Minority Shareholder Losses (yuan) | 86.3361 million | 6.0359 million | -57.4193 million | | Net Profit Attributable to Parent Company (yuan) | 229 million | 13.1683 million | 29.0169 million |

III. Financial Pressure and Safety Aspect

During the reporting period, the company’s debt-to-asset ratio was 35.5%, a year-on-year decrease of 6.47%; the current ratio was 1.37, and the quick ratio was 1.27; total debt was 2.828 billion yuan, of which short-term debt was 2.007 billion yuan, accounting for 70.98% of total debt.

From an overall financial condition perspective, key areas to focus on include:

• Significant decline in the current ratio. During the reporting period, the current ratio fell sharply to 1.37.

From the perspective of short-term financial pressure, key areas to focus on include:

• Significant increase in the short-term to long-term debt ratio. During the reporting period, the short-term debt/long-term debt ratio increased significantly to 2.

| Item | 20231231 | 20241231 | 20251231 | | Short-term Debt (yuan) | 1.05 billion | 917 million | 1.782 billion | | Long-term Debt (yuan) | 1.664 billion | 1.766 billion | 893 million | | Short-term Debt/Long-term Debt | 0.63 | 0.52 | 2 |

From the long-term financial pressure perspective, key areas to focus on include:

• The total debt/net assets ratio continues to rise. In the last three annual reports, the total debt/net assets ratios were 26.12%, 26.16%, and 28.41%, continuing to grow.

From the perspective of fund management, key areas to focus on include:

• Interest income/cash ratio is less than 1.5%. During the reporting period, cash funds were 2.8 billion yuan and short-term debt was 1.78 billion yuan, with an average interest income/cash ratio of 0.879%, below 1.5%.

From the perspective of fund coordination, key areas to focus on include:

• Sufficient funds. During the reporting period, the company’s working capital requirement was -590 million yuan, with working capital of 1.45 billion yuan. Both operating activities and investment financing activities provided adequate funds for the company, with cash payment capability of 2.04 billion yuan, and the efficiency of fund utilization deserves further attention.

IV. Operational Efficiency Aspect

During the reporting period, the company’s accounts receivable turnover rate was 3.22, a year-on-year decrease of 2.51%; the inventory turnover rate was 9.13, unchanged year-on-year; and the total asset turnover rate was 0.29, a year-on-year decrease of 17.11%.

From the operational assets perspective, key areas to focus on include:

• Continuous decline in accounts receivable turnover rate. In the last three annual reports, the accounts receivable turnover rates were 4.91, 3.32, and 3.22, indicating weakening accounts receivable turnover ability.

• Continuous decline in inventory turnover rate. In the last three annual reports, the inventory turnover rates were 9.5, 9.2, and 9.13, indicating weakening inventory turnover ability.

From the long-term assets perspective, key areas to focus on include:

• Continuous decline in total asset turnover rate. In the last three annual reports, the total asset turnover rates were 0.46, 0.36, and 0.29, indicating weakening total asset turnover ability.

• Revenue per unit of fixed assets declining year by year. In the last three annual reports, the ratio of operating revenue to original fixed asset value was 1.21, 0.91, and 0.82, showing a continuous decline.

• Significant changes in construction in progress. During the reporting period, construction in progress was 30 million yuan, an increase of 99.21% from the beginning of the period.

• Significant changes in other non-current assets. During the reporting period, other non-current assets were 20 million yuan, an increase of 77.12% from the beginning of the period.

Click on Wan Nianqing 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 listed company financial report eagle eye warning is an intelligent professional analysis system for listed company financial reports. The eagle eye warning tracks and interprets the latest financial reports of listed companies from multiple dimensions, including company performance growth, earnings quality, financial pressure and safety, and operational efficiency, by gathering a large number of authoritative financial experts from accounting firms and listed companies, and prompts potential financial risk points in a graphic format. It provides professional, efficient, and convenient technical solutions for financial institutions, listed companies, and regulatory agencies for financial risk identification and warning.

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Editor: Xiao Lang Kuai Bao