Eagle Eye Warning: Suzhou Testing's Trial Sales Gross Profit Margin Continues to Decline

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

On March 26, Su Test released its annual report for 2025.

The report shows that the company’s total operating revenue for 2025 is 2.248 billion yuan, a year-on-year increase of 10.97%; net profit attributable to the parent company is 257 million yuan, a year-on-year increase of 12.22%; net profit attributable to the parent company after deducting non-recurring gains and losses is 246 million yuan, a year-on-year increase of 18.6%; basic earnings per share is 0.5062 yuan/share.

Since its listing in January 2015, the company has distributed cash dividends 11 times, with a total cash dividend of 367 million yuan.

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

I. Performance Quality Aspect

During the reporting period, the company’s revenue was 2.248 billion yuan, a year-on-year increase of 10.97%; net profit was 284 million yuan, a year-on-year increase of 4.58%; net cash flow from operating activities was 655 million yuan, a year-on-year increase of 34.95%.

From the income cost and period expense ratio, key attention is needed:

• Operating revenue and tax changes are diverging. During the reporting period, operating revenue changed by 10.97% year-on-year, while tax and additional charges changed by -2.37% year-on-year, indicating a divergence between operating revenue and tax changes.

II. Profitability Aspect

During the reporting period, the company’s gross profit margin was 41.76%, a year-on-year decrease of 6.25%; net profit margin was 12.63%, a year-on-year decrease of 5.76%; return on equity (weighted) was 9.48%, a year-on-year increase of 7.12%.

From the operational aspect of the company, key attention is needed:

• Sales gross margin continues to decline. In the past three annual reports, the sales gross margins were 45.6%, 44.54%, and 41.76%, showing a continuous downward trend.

• Sales net profit margin continues to decline. In the past three annual reports, the sales net profit margins were 17.42%, 13.4%, and 12.63%, showing a continuous downward trend.

III. Funding Pressure and Safety Aspect

During the reporting period, the company’s debt-to-asset ratio was 40.68%, a year-on-year increase of 6.48%; current ratio was 1.65, and quick ratio was 1.43; total debt was 887 million yuan, of which short-term debt was 813 million yuan, accounting for 91.71% of total debt.

From the overall financial condition, key attention is needed:

• Current ratio continues to decline. In the past three annual reports, the current ratios were 1.86, 1.8, and 1.65, indicating weakening short-term debt repayment ability.

From the short-term funding pressure, key attention is needed:

• Cash ratio continues to decline. In the past three annual reports, the cash ratios were 0.55, 0.51, and 0.47, showing a continuous decline.

From the long-term funding pressure, key attention is needed:

• Total debt/net asset ratio continues to rise. In the past three annual reports, the total debt/net asset ratios were 29.4%, 35.92%, and 37.81%, showing continuous growth.

• Short-term debt can be covered by broad money funds, but long-term debt cannot be covered. During the reporting period, the broad money funds/total debt ratio was 0.74, with broad money funds below total debt.

• Total debt cash coverage ratio is gradually decreasing. In the past three annual reports, the broad money funds/total debt ratios were 1.24, 0.86, and 0.74, showing a continuous decline.

From the perspective of fund management, key attention is needed:

• Interest income/money funds ratio is less than 1.5%. During the reporting period, the monetary funds were 690 million yuan, and short-term debt was 810 million yuan. The average interest income/money funds ratio for the company was 0.968%, lower than 1.5%.

• Accounts payable changes are significant. During the reporting period, accounts payable amounted to 5.576 million yuan, with a change rate of 98.88% compared to the beginning of the period.

IV. Operational Efficiency Aspect

During the reporting period, the company’s accounts receivable turnover rate was 1.69, a year-on-year decrease of 0.34%; inventory turnover rate was 3.51, a year-on-year increase of 12.08%; total asset turnover rate was 0.44, a year-on-year increase of 8.22%.

From the operational assets perspective, key attention is needed:

• Accounts receivable turnover rate continues to decline. In the past three annual reports, the accounts receivable turnover rates were 2.2, 1.7, and 1.69, indicating weakening accounts receivable turnover capability.

• Accounts receivable/assets total ratio continues to grow. In the past three annual reports, the accounts receivable/assets total ratios were 23.04%, 25.15%, and 27.21%, showing continuous growth.

From the perspective of long-term assets, key attention is needed:

• Other non-current assets show significant changes. During the reporting period, other non-current assets amounted to 10 million yuan, an increase of 33.96% compared to the beginning of the period.

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Introduction to 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 system tracks and interprets the latest financial reports of listed companies from multiple dimensions, including company performance growth, revenue quality, funding pressure and safety, and operational efficiency, by gathering a large number of authoritative financial experts from accounting firms and listed companies. It provides technical solutions for financial institutions, listed companies, and regulatory authorities to identify and warn of financial risks efficiently and conveniently.

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