Eagle Eye Warning: Shandong Haihua Revenue Decline

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

On March 20, Shandong Haohua released its 2025 annual report.

The report shows that the company’s operating revenue for the full year of 2025 was CNY 4.745 billion, down 21.07% year over year; net profit attributable to shareholders was -CNY 1.388 billion, down 3,638.09% year over year; net profit attributable after non-recurring items was -CNY 1.486 billion, down 3,835.22% year over year; basic earnings per share were -1.55 yuan per share.

Since the company went public in July 1998, it has carried out cash dividends 17 times, with a cumulative cash dividend implementation amount of CNY 1.364 billion.

The listed company financial report hawk-eye early warning system performs intelligent quantitative analysis of Shandong Haohua’s 2025 annual report across four major dimensions: performance quality, profitability, funding pressure and safety, and operational efficiency.

I. Performance Quality

During the reporting period, the company’s revenue was CNY 4.745 billion, down 21.07% year over year; net profit was -CNY 1.388 billion, down 3,638.08% year over year; net cash flow from operating activities was -CNY 104 million, down 106.27% year over year.

From the overall performance perspective, the following should receive key attention:

• Operating revenue declined. During the reporting period, operating revenue was CNY 4.75 billion, down 21.08% year over year.

• The growth rate of net profit attributable to shareholders continued to decline. In the past three annual reports, the year-over-year changes in net profit attributable to shareholders were -5.78%, -96.24%, and -3,638.1% respectively, with the downward trend continuing.

| Item | 20231231 | 20241231 | 20251231 | | Net profit attributable to shareholders (yuan) | 1.044 billion | 39.2167 million | -1.388 billion | | Net profit attributable to shareholders growth rate | -5.78% | -96.24% | -3,638.1% |

• The growth rate of net profit attributable after non-recurring items continued to decline. In the past three annual reports, the year-over-year changes in net profit attributable after non-recurring items were 8.99%, -103.85%, and -3,835.22% respectively, with the downward trend continuing.

| Item | 20231231 | 20241231 | 20251231 | | Profit attributable after non-recurring items (yuan) | 982 million | -37.7635 million | -1.486 billion | | Profit attributable after non-recurring items growth rate | 8.99% | -103.85% | -3,835.22% |

• Operating profit was negative for three consecutive quarters. During the reporting period, operating profit in the most recent three quarters was -CNY 250 million, -CNY 190 million, and -CNY 790 million, remaining negative throughout.

| Item | 20250630 | 20250930 | 20251231 | | Operating profit (yuan) | -245 million | -189 million | -793 million |

• Net profit first recorded a loss in the past three years. During the reporting period, net profit turned negative, at -CNY 1.39 billion.

| Item | 20231231 | 20241231 | 20251231 | | Net profit (yuan) | 1.044 billion | 39.2169 million | -1.388 billion |

From the allocation of revenue costs and period expenses, the following should receive key attention:

• The change in selling expenses differs greatly from the change in operating revenue. During the reporting period, operating revenue changed by -21.08% year over year, selling expenses changed by 39.22% year over year, and the discrepancy between selling expenses and operating revenue changes was large.

II. Profitability

During the reporting period, the company’s gross margin was 8.86%, down 36.57% year over year; net profit margin was -29.24%, down 4,582.83% year over year; return on net assets (weighted) was -30.8%, down 4,152.63% year over year.

结合公司经营端看收益，需要重点关注： • Sales gross margin continued to decline. In the past three annual reports, the sales gross margins were 22.89%, 13.98%, and 8.86%, respectively, showing a continuous downward trend.

• Sales net profit margin fluctuated significantly. During the reporting period, the sales net profit margins for Q1 to Q4 were -6.5%, -5.56%, 0.94%, and -18.12%, respectively; the year-over-year changes were -176.97%, 180.39%, -132.64%, and 522.16%, respectively. Sales net profit margin was relatively volatile.

| Item | 20250331 | 20250630 | 20250930 | 20251231 | | Sales net profit margin | -6.5% | -5.56% | 0.94% | -18.12% | | Sales net profit margin growth rate | -176.97% | 180.39% | -132.64% | 522.16% |

• Sales net profit margin continued to decline. In the past three annual reports, sales net profit margins were 12.24%, 0.65%, and -29.24%, respectively, showing a continuous downward trend.

| Item | 20231231 | 20241231 | 20251231 | | Sales net profit margin | 12.24% | 0.65% | -29.24% | | Sales net profit margin growth rate | 7.24% | -94.67% | -4,582.83% |

From the company’s asset-side perspective, the following should receive key attention:

• The average return on net assets in the past three years was below 7%. During the reporting period, the weighted average return on net assets was -30.8%, 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 | 22.61% | 0.76% | -30.8% | | Return on net assets growth rate | -12.23% | -96.64% | -4,152.63% |

• Return on net assets continued to decline. In the past three annual reports, the weighted average return on net assets was 22.61%, 0.76%, and -30.8%, respectively, with the downward trend continuing.

| Item | 20231231 | 20241231 | 20251231 | | Return on net assets | 22.61% | 0.76% | -30.8% | | Return on net assets growth rate | -12.23% | -96.64% | -4,152.63% |

• Return on invested capital is below 7%. During the reporting period, the company’s return on invested capital was -22.74%, and the average over the three reporting periods was below 7%.

| Item | 20231231 | 20241231 | 20251231 | | Return on invested capital | 18.4% | 0.96% | -22.74% |

Regarding whether there is impairment risk, the following should receive key attention:

• The year-over-year change rate of asset impairment losses exceeded 30%. During the reporting period, asset impairment losses were -CNY 1.2 billion, down 309.79% year over year.

| Item | 20231231 | 20241231 | 20251231 | | Asset impairment losses (yuan) | -9.0554 million | -293 million | -1.199 billion |

III. Funding Pressure and Safety

During the reporting period, the company’s asset-liability ratio was 56.92%, up 43.73% year over year; the current ratio was 0.79, and the quick ratio was 0.75; total debt was CNY 3.255 billion, of which short-term debt was CNY 2.83 billion; the ratio of short-term debt to total debt was 86.96%.

From the overall view of the financial position, the following should receive key attention:

• The asset-liability ratio continued to grow. In the past three annual reports, the asset-liability ratios were 35.9%, 39.6%, and 56.92%, respectively, showing an upward trend.

• The current ratio continued to decline. In the past three annual reports, the current ratios were 1.93, 1.71, and 0.79, respectively, indicating weakening short-term debt repayment capacity.

From short-term funding pressure, the following should receive key attention:

• The ratio of short- to long-term debt increased significantly. During the reporting period, short-term debt/long-term debt increased sharply to 2.11.

• The cash ratio continued to decline. In the past three annual reports, the cash ratios were 0.9, 0.76, and 0.52, respectively, continuing to fall.

From long-term funding pressure, the following should receive key attention:

• Broad monetary funds can cover short-term debt, but cannot cover long-term debt. During the reporting period, the ratio of broad monetary funds/total debt was 0.89, and broad monetary funds were lower than total debt.

From the perspective of fund management and control, the following should receive key attention:

• Interest income/monetary funds ratio is less than 1.5%. During the reporting period, monetary funds were CNY 2.14 billion, and short-term debt was CNY 1.65 billion. The average ratio of interest income/monetary funds was 1.102%, below 1.5%.

• Prepaid accounts/Current assets ratio continues to increase. In the past three annual reports, the ratio of prepaid accounts/current assets was 0.24%, 0.4%, and 0.68%, respectively, showing continuous growth.

• The growth rate of prepaid accounts is higher than the growth rate of operating costs. During the reporting period, prepaid accounts increased by 14.97% compared with the beginning of the period; operating costs decreased by -16.39% year over year. The growth rate of prepaid accounts was higher than the growth rate of operating costs.

| Item | 20231231 | 20241231 | 20251231 | | Prepaid accounts vs. beginning of period growth rate | -66.14% | 73.41% | 14.97% | | Operating cost growth rate | -15.39% | -21.35% | -16.39% |

From the perspective of fund coordination, the following should receive key attention:

• Fund coordination needs improvement. During the reporting period, the company’s working capital requirement was -CNY 530 million, working capital was -CNY 860 million, and the liquidity from operating activities could not fully cover long-term asset investment. Cash payment capacity was -CNY 330 million.

| Item | 20251231 | | Cash payment capacity (yuan) | -3.28亿 | | Working capital requirement (yuan) | -5.27亿 | | Working capital (yuan) | -8.55亿 |

IV. Operational Efficiency

During the reporting period, the company’s accounts receivable turnover was 485.83, up 271.74% year over year; inventory turnover was 11.44, down 7% year over year; total asset turnover was 0.54, down 24.67% year over year.

From operating assets, the following should receive key attention:

• Inventory turnover continued to decline. In the past three annual reports, the inventory turnover ratios were 19.53, 12.3, and 11.44, respectively, indicating weakening inventory turnover capability.

From long-term assets, the following should receive key attention:

• Total asset turnover continued to decline. In the past three annual reports, total asset turnover ratios were 1.14, 0.72, and 0.54, respectively, indicating weakening total asset turnover capability.

• Unit fixed-asset income output declines year by year. In the past three annual reports, the ratio of operating revenue/fixed asset original value was 3.6, 2.25, and 2.22, respectively, showing a continuous decline.

• Construction in progress changed significantly. During the reporting period, construction in progress was CNY 160 million, up 367.66% from the beginning of the period.

• Long-term deferred expenses changed significantly compared with the beginning of the period. During the reporting period, long-term deferred expenses were 1.641 million, up 279.24% from the beginning of the period.

• Intangible assets changed significantly. During the reporting period, intangible assets were CNY 210 million, up 92.64% from the beginning of the period.

From the three expense categories (selling, general and administrative, and finance expenses), the following should receive key attention:

• Selling expenses growth rate exceeded 20%. During the reporting period, selling expenses were CNY 110 million, up 39.22% year over year.

• The ratio of selling expenses to operating revenue continues to increase. In the past three annual reports, the ratio of selling expenses to operating revenue was 0.94%, 1.28%, and 2.26%, respectively, showing a continuous increase.

Click Shandong Haohua’s hawk-eye early warning to view the latest early warning details and a visual preview of the financial report.

Introduction to Sina Finance listed company financial report hawk-eye early warning: The listed company financial report hawk-eye early warning is an intelligent, specialized analysis system for listed company financial reports. By pooling a large number of authoritative financial experts from accounting firms and listed companies, the hawk-eye early warning system tracks and interprets the latest financial reports of listed companies across multiple dimensions, such as company performance growth, earnings quality, funding pressure and safety, and operational efficiency, and presents potential financial risk points in text and graphics. It provides professional, efficient, and convenient technical solutions for financial institutions, listed companies, regulatory authorities, and others to identify and issue early warnings on financial risks of listed companies.

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