Eagle Eye Warning: SanChao New Materials' Operating Revenue Significantly Declines

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

On March 17, Sancha Super Materials released its 2025 annual report. The audit opinion was a standard unqualified audit opinion (standard unreserved audit opinion).

The report shows that the company’s operating revenue for the full year of 2025 was 228 million yuan, down 34.58% year over year; attributable net profit to the parent was -159 million yuan, down 12.86% year over year; net profit after deducting non-recurring items attributable to the parent was -168 million yuan, down 15.95% year over year; and basic earnings per share were -1.3927 yuan per share.

Since listing in April 2017, the company has paid cash dividends 5 times, with cumulative cash dividends already implemented totaling 34.5134 million yuan.

The listed company financial report eagle eye early warning system conducts intelligent quantitative analysis of Sancha Super Materials’ 2025 annual report across four major dimensions: performance quality, profitability, capital pressure and safety, as well as operating efficiency.

I. Performance Quality

During the reporting period, the company’s revenue was 228 million yuan, down 34.58% year over year; net profit was -157 million yuan, down 9.88% year over year; and net cash flow from operating activities was 24.7187 million yuan, up 123.4% year over year.

From the overall perspective of performance, it is necessary to focus on:

• Operating revenue fell significantly. During the reporting period, operating revenue was 230 million yuan, down sharply 34.58% year over year.

• Operating profit was negative for three consecutive quarters. During the reporting period, operating profit for the most recent three quarters was -9.426 million yuan, -7.328 million yuan, and -0.9 billion yuan, continuously negative.

| Item | 20250630 | 20250930 | 20251231 | | Operating profit (yuan) | -9.4259 million | -7.3279 million | -88.8574 million |

• Net profit has suffered losses for two consecutive years. In the most recent three annual reports, net profit was 0.2 billion yuan, -1.4 billion yuan, and -1.6 billion yuan, resulting in losses for two consecutive years.

| Item | 20231231 | 20241231 | 20251231 | | Net profit (yuan) | 23.6638 million | -143 million | -157 million |

Based on the quality of cash flows, it is necessary to focus on:

• A divergence between changes in operating revenue and net cash flow from operating activities. During the reporting period, operating revenue decreased 34.58% year over year, while net cash flow from operating activities increased 123.4% year over year; the movements of operating revenue and net cash flow from operating activities diverged.

II. Profitability

During the reporting period, the company’s gross margin was 21.8%, up 21.87% year over year; net profit margin was -69%, down 67.95% year over year; and return on net assets (weighted) was -27.49%, down 42.95% year over year.

When combining the company’s operations to assess earnings, it is necessary to focus on:

• Gross sales margin fluctuated considerably. In the most recent three annual reports, gross sales margin was 29.37%, 17.89%, and 21.8% respectively; year-over-year changes were 22.98%, -39.1%, and 21.87% respectively—indicating abnormal fluctuations in gross sales margin.

• Net sales margin has continued to decline. In the most recent three annual reports, net sales margin was 4.92%, -41.08%, and -69% respectively, with a continuing downward trend.

| Item | 20231231 | 20241231 | 20251231 | | Net sales margin | 4.92% | -41.08% | -69% | | Net sales margin growth rate | 60.85% | -935.19% | -67.95% |

• Gross sales margin increased, while inventory turnover declined. During the reporting period, gross sales margin increased from 17.89% in the same period last year to 21.8%, and inventory turnover decreased from 1.63 in the same period last year to 1.38.

• Gross sales margin increased, while accounts receivable turnover declined. During the reporting period, gross sales margin increased from 17.89% in the same period last year to 21.8%, and accounts receivable turnover decreased from 2.3 times in the same period last year to 2.06 times.

• Gross sales margin increased, while net sales margin declined. During the reporting period, gross sales margin increased from 17.89% in the same period last year to 21.8%, and net sales margin declined from -41.08% in the same period last year to -69%.

When assessing earnings from the company’s asset side, it is necessary to focus on:

• The average return on net assets is below 7% over the last three years. During the reporting period, the weighted average return on net assets was -27.49%, and the weighted average return on net assets over the most recent three accounting years averaged below 7%.

| Item | 20231231 | 20241231 | 20251231 | | Return on net assets | 3.56% | -19.23% | -27.49% | | Return on net assets growth rate | 50.21% | -640.17% | -42.95% |

• Return on net assets has continued to decline. In the most recent three annual reports, the weighted average return on net assets was 3.56%, -19.23%, and -27.49% respectively, with a continuously downward trend.

| Item | 20231231 | 20241231 | 20251231 | | Return on net assets | 3.56% | -19.23% | -27.49% | | Return on net assets growth rate | 50.21% | -640.17% | -42.95% |

• Return on invested capital is below 7%. During the reporting period, the company’s return on invested capital was -21.04%, and the average value across the three reporting periods was below 7%.

| Item | 20231231 | 20241231 | 20251231 | | Return on invested capital | 3.07% | -15.69% | -21.04% |

From the perspective of whether there is impairment risk, it is necessary to focus on:

• The year-over-year change rate of asset impairment losses exceeds 30%. During the reporting period, asset impairment losses were -0.9 billion yuan, up 36.94% year over year.

| Item | 20231231 | 20241231 | 20251231 | | Asset impairment losses (yuan) | -9.6056 million | -142 million | -89.2275 million |

III. Capital Pressure and Safety

During the reporting period, the company’s asset-liability ratio was 34.85%, up 12.29% year over year; the current ratio was 1.9, and the quick ratio was 1.35; total debt was 145 million yuan, including short-term debt of 114 million yuan, and the ratio of short-term debt to total debt was 78.14%.

From short-term capital pressure, it is necessary to focus on:

• The short-term-to-long-term debt ratio increased significantly. During the reporting period, the short-term debt/long-term debt ratio increased sharply to 3.56.

From long-term capital pressure, it is necessary to focus on:

• The ratio of total debt to net assets continues to rise. In the most recent three annual reports, the ratio of total debt to net assets was 14.65%, 24.78%, and 28.09% respectively, showing continuous growth.

From the perspective of capital management and control, it is necessary to focus on:

• The ratio of interest income to cash and cash equivalents is less than 1.5%. During the reporting period, cash and cash equivalents were 80 million yuan, short-term debt was 110 million yuan, and the company’s average ratio of interest income to cash and cash equivalents was 1.356%, below 1.5%.

• Other receivables have changed significantly. During the reporting period, other receivables were 1.936 million yuan, with a period-beginning change rate of 35.08%.

• The ratio of other receivables to current assets continues to grow. In the most recent three annual reports, the ratio of other receivables to current assets was 0.26%, 0.29%, and 0.45% respectively, showing continuous increase.

• Other payables have changed significantly. During the reporting period, other payables were 1.283 million yuan, with a period-beginning change rate of 38.77%.

From the perspective of capital coordination, it is necessary to focus on:

• Free cash flow is negative. In the most recent three annual reports, free cash flow was -0.9 billion yuan, -0.9 billion yuan, and -0.7 billion yuan respectively, continuously negative.

| Item | 20231231 | 20241231 | 20251231 | | Free cash flow (yuan) | -89.9556 million | -85.4723 million | -72.3721 million |

IV. Operating Efficiency

During the reporting period, the company’s accounts receivable turnover was 2.06, down 10.28% year over year; inventory turnover was 1.38, down 15.49% year over year; and total asset turnover was 0.26, down 19.95% year over year.

From operating assets, it is necessary to focus on:

• Accounts receivable turnover continues to decline. In the most recent three annual reports, accounts receivable turnover was 2.83, 2.3, and 2.06 respectively, indicating weakening accounts receivable turnover capability.

• Inventory turnover continues to decline. In the most recent three annual reports, inventory turnover was 1.66, 1.63, and 1.38 respectively, indicating weakening inventory turnover capability.

From long-term assets, it is necessary to focus on:

• Total asset turnover continues to decline. In the most recent three annual reports, total asset turnover was 0.44, 0.32, and 0.26 respectively, indicating weakening total asset turnover capability.

• The unit fixed-asset income output value declines year by year. In the most recent three annual reports, the ratio of operating revenue to the original value of fixed assets was 1.16, 1.06, and 0.96 respectively, showing a continuous decline.

• Construction in progress has changed significantly. During the reporting period, construction in progress was 30 million yuan, up 294.05% from the beginning of the period.

From the perspective of the three-expense (sales, admin, R&D) dimension, it is necessary to focus on:

• The ratio of selling expenses to operating revenue continues to rise. In the most recent three annual reports, the ratio of selling expenses to operating revenue was 4.01%, 6.1%, and 8.65% respectively, continuing to increase.

Click on Sancha Super Materials’ Eagle Eye early warning to view the latest details and a visual preview of the financial report.

Sina Finance listed company financial report Eagle Eye early warning profile: The listed company financial report Eagle Eye early warning is a specialized intelligent financial report analysis system for listed companies. Eagle Eye early warning gathers a large number of authoritative financial experts from accounting firms and listed companies, and follows and interprets listed companies’ latest financial reports across multiple dimensions, such as company performance growth, earnings quality, capital pressure and safety, and operating efficiency. It also uses text and visuals to highlight potential financial risk points. It provides professional, efficient, and convenient technical solutions for identifying and issuing early warnings of financial risks for financial institutions, listed companies, regulatory authorities, and others.

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