Eagle Eye Warning: The ratio of net cash flow from operating activities to net profit for Weiguang Co., Ltd. is less than 1

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

On March 26, Weiguang Co., Ltd. released its annual report for 2025.

The report shows that the company’s total revenue for 2025 was 1.475 billion yuan, a year-on-year increase of 4.68%; net profit attributable to the parent company was 364 million yuan, a year-on-year increase of 65.22%; net profit excluding non-recurring items was 275 million yuan, a year-on-year decrease of 9.08%; basic earnings per share was 1.59 yuan/share.

Since its IPO in June 2016, the company has implemented cash dividends 12 times, with a total cash dividend of 663 million yuan.

The eagle eye warning system for listed company financial reports conducts intelligent quantitative analysis of Weiguang Co., Ltd.'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 1.475 billion yuan, a year-on-year increase of 4.68%; net profit was 364 million yuan, a year-on-year increase of 65.22%; net cash flow from operating activities was 234 million yuan, a year-on-year decrease of 23.1%.

In conjunction with cash flow quality, the following needs special attention:

• There is a divergence between changes in revenue and net cash flow from operating activities. During the reporting period, revenue increased by 4.68% year-on-year, while net cash flow from operating activities decreased by 23.1%, indicating a divergence.

• The ratio of net cash flow from operating activities to net profit is below 1. During the reporting period, the ratio of net cash flow from operating activities to net profit was 0.642, which is below 1, indicating weak profitability quality.

• The ratio of net cash flow from operating activities to net profit continues to decline. In the last three interim reports, the ratios were 2.27, 1.38, and 0.64, showing a continuous decline and a downward trend in profitability quality.

II. Profitability Aspect

During the reporting period, the company’s gross profit margin was 30.3%, a year-on-year decrease of 6.13%; net profit margin was 24.71%, a year-on-year increase of 57.84%; return on equity (weighted) was 20.51%, a year-on-year increase of 45.98%.

In conjunction with the company’s operating side looking at earnings, the following needs special attention:

• The sales gross profit margin continues to decline. In the last three annual reports, the sales gross profit margins were 33.69%, 32.27%, and 30.3%, showing a continuous downward trend.

• The sales gross profit margin continues to decline, while the sales net profit margin continues to increase. In the last three annual reports, the sales gross profit margins were 33.69%, 32.27%, and 30.3%, continuously declining, while the sales net profit margins were 9.04%, 15.65%, and 24.71%, continuously increasing.

III. Financial Pressure and Safety Aspect

During the reporting period, the company’s debt-to-asset ratio was 16.45%, a year-on-year decrease of 23.71%; the current ratio was 3.81, and the quick ratio was 3.29; total debt was 11.507 million yuan, of which short-term debt was 11.507 million yuan, accounting for 100% of total debt.

From the perspective of short-term financial pressure, the following needs special attention:

• The ratio of net cash flow from operating activities to current liabilities continues to decline. In the last three annual reports, the ratios were 0.88, 0.69, and 0.64, indicating a continuous decline.

From the perspective of fund management, the following needs special attention:

• Prepaid accounts have significant fluctuations. During the reporting period, prepaid accounts amounted to 4.49 million yuan, with a change rate from the beginning of the period of 61.17%.

• The growth rate of prepaid accounts exceeds the growth rate of operating costs. During the reporting period, prepaid accounts increased by 61.17% from the beginning of the period, while operating costs increased by 7.73% year-on-year, indicating that the growth rate of prepaid accounts exceeds the growth rate of operating costs.

| Item | 20231231 | 20241231 | 20251231 | | Growth rate of prepaid accounts compared to the beginning | 60.12% | -30.6% | 61.17% | | Operating costs growth rate | 5.57% | 13.16% | 7.73% |

IV. Operational Efficiency Aspect

During the reporting period, the company’s accounts receivable turnover ratio was 5.87, a year-on-year decrease of 5.07%; inventory turnover ratio was 5.33, a year-on-year decrease of 5.73%; total asset turnover ratio was 0.67, a year-on-year decrease of 7.01%.

From the perspective of operating assets, the following needs special attention:

• The accounts receivable turnover ratio continues to decline. In the last three annual reports, the accounts receivable turnover ratios were 6.96, 6.18, and 5.87, indicating a weakening of accounts receivable turnover ability.

From the perspective of long-term assets, the following needs special attention:

• The income value per unit of fixed assets is declining year by year. In the last three annual reports, the revenue/fixed asset original value ratios were 7.03, 4.81, and 4.8, showing a continuous decline.

• Construction in progress exceeds fixed assets. During the reporting period, construction in progress was 350 million yuan, while fixed assets were 310 million yuan, indicating that construction in progress exceeds fixed assets.

From the perspective of three expenses, the following needs special attention:

• Management expenses growth rate exceeds 20%. During the reporting period, management expenses were 40 million yuan, a year-on-year increase of 25.17%.

• The growth rate of management expenses exceeds the revenue growth rate. During the reporting period, management expenses increased by 25.17% year-on-year, while revenue increased by 4.68% year-on-year, indicating that the growth rate of management expenses exceeds the revenue growth rate.

| Item | 20231231 | 20241231 | 20251231 | | Revenue growth rate | 5.25% | 11.12% | 4.68% | | Management expenses growth rate | 2.43% | 10.57% | 25.17% |

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Introduction to the Sina Finance Listed Company Financial Report Eagle Eye Warning: The listed company financial report eagle eye warning is an intelligent professional analysis system for listed company financial reports. The eagle eye warning gathers a large number of authoritative financial experts from accounting firms and listed companies to track and interpret the latest financial reports of listed companies from various dimensions such as company performance growth, earnings quality, financial pressure and safety, and operational efficiency, and to highlight potential financial risk points in graphic form. It provides professional, efficient, and convenient financial risk identification and warning technical solutions for financial institutions, listed companies, regulatory authorities, and others.

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