Eagle Eye Warning: Lingyi iTech's accounts receivable growth rate exceeds revenue growth rate

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

On March 27, Lianyi Zhizao released its 2025 annual report.

The report shows that the company’s total operating revenue for 2025 was RMB 51.429 billion, up 16.2% year over year; net profit attributable to the parent was RMB 2.288 billion, up 30.34% year over year; net profit after deducting non-recurring items attributable to the parent was RMB 1.747 billion, up 7.41% year over year; basic earnings per share was RMB 0.33 per share.

Since the company went public in June 2011, it has paid cash dividends 12 times, with cumulative implemented cash dividends of RMB 3.224 billion.

The listed-company earnings hawk-eye early warning system conducts intelligent quantitative analysis of Lianyi Zhizao’s 2025 annual report across four major dimensions: performance quality, profitability, capital pressure and safety, and operating efficiency.

I. Performance Quality

In the reporting period, the company’s operating revenue was RMB 51.429 billion, up 16.2% year over year; net profit was RMB 2.327 billion, up 32.15% year over year; net cash flow from operating activities was RMB 4.433 billion, up 10.4% year over year.

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

• The growth rate of operating revenue has been declining continuously for the past three quarters. In the reporting period, operating revenue同比 increased by 8.33%; the growth rate has continued to decline over the past three quarters.

In conjunction with the quality of operating assets, it is necessary to focus on:

• The growth rate of bills receivable is higher than the growth rate of operating revenue. In the reporting period, bills receivable increased by 143.04% from the beginning of the period; operating revenue同比 increased by 16.2%; the growth rate of bills receivable is higher than the growth rate of operating revenue.

| Item | 20231231 | 20241231 | 20251231 | | Operating revenue growth rate | -1.05% | 29.7% | 16.2% | | Bills receivable growth rate from the beginning of the period | 35.32% | -19.49% | 143.04% |

• The growth rate of accounts receivable is higher than the growth rate of operating revenue. In the reporting period, accounts receivable increased by 20.32% from the beginning of the period; operating revenue同比 increased by 16.2%; the growth rate of accounts receivable is higher than the growth rate of operating revenue.

| Item | 20231231 | 20241231 | 20251231 | | Operating revenue growth rate | -1.05% | 29.7% | 16.2% | | Accounts receivable growth rate from the beginning of the period | -3.81% | 30.55% | 20.32% |

• The accounts receivable-to-operating revenue ratio continues to rise. In the past three annual reports, the accounts receivable-to-operating revenue ratio was 25.69%, 25.86%, and 26.77% respectively, showing a continued increase.

• The inventory growth rate is higher than the growth rate of operating costs. In the reporting period, inventory increased by 22.71% from the beginning of the period; operating costs increased by 16.15% year over year; the inventory growth rate is higher than the growth rate of operating costs.

• The inventory growth rate is higher than the growth rate of operating revenue. In the reporting period, inventory increased by 22.71% from the beginning of the period; operating revenue同比 increased by 16.2%; the inventory growth rate is higher than the growth rate of operating revenue.

In conjunction with cash flow quality, it is necessary to focus on:

• The ratio of net cash flow from operating activities to net profit continues to decline. In the past three semiannual reports, the ratio of net cash flow from operating activities to net profit was 2.59, 2.28, and 1.91 respectively, continuing to decline, with a downward trend in earnings quality.

II. Profitability

In the reporting period, the company’s gross margin was 15.8%, up 0.21% year over year; net profit margin was 4.52%, up 13.73% year over year; return on net assets (weighted) was 10.77%, up 16.31% year over year.

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

• The goodwill impairment change rate exceeds 30%. In the reporting period, the goodwill balance was RMB 2.7 billion, with a change rate of 130.31% compared with the beginning of the period.

III. Capital Pressure and Safety

In the reporting period, the company’s asset-liability ratio was 57.93%, up 3.3% year over year; the current ratio was 1.18, and the quick ratio was 0.91; total debt was RMB 15.562 billion, including short-term debt of RMB 11.263 billion, and short-term debt accounted for 72.37% of total debt.

From the overall financial position, it is necessary to focus on:

• The asset-liability ratio continues to grow. In the past three annual reports, the asset-liability ratio was 50.76%, 55.99%, and 57.93% respectively, showing an upward trend.

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

• The ratio of short-term to long-term debt has grown significantly. In the reporting period, the ratio of short-term debt to long-term debt increased significantly to 1.78.

• Short-term debt is large, with a shortfall in existing funds. In the reporting period, broad money funds were RMB 9.37 billion, short-term debt was RMB 9.65 billion, broad money funds / short-term debt was 0.97, and broad money funds were below short-term debt.

• The cash ratio continues to decline. In the past three annual reports, the cash ratio was 0.6, 0.5, and 0.3 respectively, continuing to decline.

• The ratio of net cash flow from operating activities to current liabilities continues to decline. In the past three annual reports, the ratio of net cash flow from operating activities to current liabilities was 0.4, 0.25, and 0.17 respectively, continuing to decline.

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

• The ratio of total debt to net assets continues to rise. In the past three annual reports, the ratio of total debt to net assets was 44.71%, 60.59%, and 61.86% respectively, continuing to grow.

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

• The ratio of interest income to monetary funds is less than 1.5%. In the reporting period, monetary funds were RMB 6.18 billion, short-term debt was RMB 9.65 billion; the company’s average ratio of interest income / monetary funds was 1.243%, below 1.5%.

• Accounts payable bills have changed significantly. In the reporting period, accounts payable bills were RMB 1.61 billion, with a change rate of 134.52% compared with the beginning of the period.

• Other payables have changed significantly. In the reporting period, other payables were RMB 1.17 billion, with a change rate of 81.86% compared with the beginning of the period.

IV. Operating Efficiency

In the reporting period, the company’s accounts receivable turnover was 4.08, down 6.86% year over year; inventory turnover was 6.64, up 3.13%; total asset turnover was 1, down 7.15%.

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

• Fixed assets have changed significantly. In the reporting period, fixed assets were RMB 14.44 billion, up 30.65% from the beginning of the period.

• Construction in progress has changed significantly. In the reporting period, construction in progress was RMB 2.86 billion, up 37.62% from the beginning of the period.

From the three-expense dimension, it is necessary to focus on:

• Administrative expenses growth exceeds 20%. In the reporting period, administrative expenses were RMB 1.87 billion, up 32.02% year over year.

• Administrative expenses growth exceeds operating revenue. In the reporting period, administrative expenses increased by 32.02% year over year, operating revenue increased by 16.2% year over year, and administrative expenses growth was higher than operating revenue growth.

| Item | 20231231 | 20241231 | 20251231 | | Operating revenue growth rate | -1.05% | 29.7% | 16.2% | | Administrative expenses growth rate | -4% | 1.06% | 32.02% |

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

Sina Finance Listed Company Earnings Hawk-Eye Early Warning system introduction: the earnings hawk-eye early warning for listed company financial reports is an intelligent, professional analysis system for listed company financial reports. Hawk-eye early warning gathers a large number of authoritative financial experts from accounting firms and listed companies, and tracks and interprets the latest financial reports of listed companies across multiple dimensions such as company performance growth, earnings quality, capital pressure and safety, and operating efficiency; it also highlights potentially existing financial risk points in the form of charts and text. It provides technical solutions for professional, efficient, and convenient identification and early warning of financial risks for financial institutions, listed companies, regulatory departments, and others.

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