Eagle Eye Warning: Sihui Fushi's accounts receivable growth rate exceeds revenue growth rate

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

On March 31, Siqihui Fushi released its 2025 annual report. The audit opinion is a standard unqualified audit opinion.

The report shows that the company’s full-year operating revenue in 2025 was RMB 1.932 billion, up 36.69% year over year; net profit attributable to shareholders of the parent was RMB 128 million, down 8.67% year over year; net profit after deducting non-recurring items attributable to shareholders of the parent was RMB 113 million, down 6.8% year over year; and basic earnings per share were RMB 0.88 per share.

Since going public in June 2020, the company has paid cash dividends 5 times, with cumulative cash dividends already implemented of RMB 140 million. The announcement shows that the company plans to distribute a cash dividend of RMB 1.4 per every 10 shares to all shareholders (tax included).

The listed company financial report eagle-eye early warning system conducts intelligent quantitative analysis of Siqihui Fushi’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 1.932 billion, up 36.69%; net profit was RMB 128 million, down 8.6% year over year; and net cash flow from operating activities was RMB 153 million, down 37% year over year.

From the overall performance perspective, attention should be focused on:

• A divergence between changes in operating revenue and net profit. In the reporting period, operating revenue increased 36.69% year over year, while net profit fell 8.6% year over year—showing a divergence between changes in operating revenue and net profit.

In light of the quality of operating assets, attention should be focused on:

• The growth rate of notes receivable exceeds the growth rate of operating revenue. In the reporting period, notes receivable increased 47.53% from the beginning of the period, while operating revenue rose 36.69% year over year—indicating that the growth rate of notes receivable is higher than that of operating revenue.

• The growth rate of accounts receivable exceeds the growth rate of operating revenue. In the reporting period, accounts receivable increased 53.25% from the beginning of the period, while operating revenue rose 36.69% year over year—indicating that the growth rate of accounts receivable is higher than that of operating revenue.

• The growth rate of inventory exceeds the growth rate of cost of revenue. In the reporting period, inventory increased 81.48% from the beginning of the period, while cost of revenue rose 40.33% year over year—indicating that the growth rate of inventory is higher than that of cost of revenue.

• The growth rate of inventory exceeds the growth rate of operating revenue. In the reporting period, inventory increased 81.48% from the beginning of the period, while operating revenue rose 36.69% year over year—indicating that the growth rate of inventory is higher than that of operating revenue.

In light of the quality of cash flows, attention should be focused on:

• A divergence between operating revenue and net cash flow from operating activities. In the reporting period, operating revenue increased 36.69% year over year, while net cash flow from operating activities fell 37% year over year—showing a divergence between operating revenue and net cash flow from operating activities.

II. Profitability

In the reporting period, the company’s gross margin was 20.77%, down 8.99% year over year; net profit margin was 6.64%, down 33.13% year over year; and return on net assets (weighted) was 7.29%, down 19.63% year over year.

In light of the company’s operations at the revenue level, attention should be focused on:

• The selling gross margin continues to decline. In the past three annual reports, the selling gross margin was 27.11%, 22.82%, and 20.77%, respectively, showing a continuous downward trend.

• The selling net profit margin continues to decline. In the past three annual reports, the selling net profit margin was 15.54%, 9.92%, and 6.64%, respectively, showing a continuous downward trend.

In light of the company’s asset side at the earnings level, attention should be focused on:

• The return on net assets continues to decline. In the past three annual reports, the weighted average return on net assets was 15.16%, 9.07%, and 7.29%, respectively, showing a continuous downward trend.

III. Capital Pressure and Safety

In the reporting period, the company’s asset-liability ratio was 25.51%, down 34.16% year over year; the current ratio was 2.46, and the quick ratio was 2.04; total debt was RMB 24.3501 million, of which short-term debt was RMB 24.3501 million, and the ratio of short-term debt to total debt was 100%.

From the overall view of the financial position, attention should be focused on:

• The current ratio continues to decline. In the past three annual reports, the current ratio was 4.8, 3.45, and 2.46, respectively, indicating weakening short-term solvency.

From the perspective of short-term capital pressure, attention should be focused on:

• The cash ratio continues to decline. In the past three annual reports, the cash ratio was 2.61, 1.91, and 1.24, respectively, showing a continuous 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 0.71, 0.54, and 0.22, respectively, showing a continuous decline.

From the perspective of capital management and control, attention should be focused on:

• The ratio of other receivables to current assets continues to grow. In the past three annual reports, the ratio of other receivables to current assets was 0.25%, 0.33%, and 0.38%, respectively, showing continuous growth.

• Notes payable fluctuate significantly. In the reporting period, notes payable were RMB 0.2 billion, with a change rate of 49.54% compared with the beginning of the period.

IV. Operating Efficiency

In the reporting period, the company’s accounts receivable turnover ratio was 4.71, up 4.59% year over year; the inventory turnover ratio was 6.69, down 9.13% year over year; and total asset turnover ratio was 0.68, up 21.39% year over year.

From operating assets, attention should be focused on:

• The ratio of inventory to total assets continues to grow. In the past three annual reports, the ratio of inventory to total assets was 5.6%, 6.19%, and 9.77%, respectively, showing continuous growth.

From long-term assets, attention should be focused on:

• Construction in progress fluctuated significantly. In the reporting period, construction in progress was RMB 180 million, up 257.82% from the beginning of the period.

• Other non-current assets fluctuated significantly. In the reporting period, other non-current assets were RMB 0.1 billion, up 206.89% from the beginning of the period.

From the three-fee (selling, general & administrative, and R&D) dimensions, attention should be focused on:

• The ratio of selling expenses to operating revenue continues to grow. In the past three annual reports, the ratio of selling expenses to operating revenue was 2.21%, 2.54%, and 2.6%, respectively, showing continuous growth.

Click on Siqihui Fushi eagle-eye early warning to view the latest early-warning details and a visual preview of the financial report.

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Responsible editor: Xiao Lang Express News