Eagle Eye Warning: The ratio of net cash flow from operating activities to net profit for Xinye Shares is less than 1

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

On March 29, Tin Industry Co., Ltd. released its 2025 annual report. The audit opinion was a standard unqualified audit opinion.

The report shows that the company’s operating revenue for the full year 2025 was RMB 43.535 billion, up 3.72% year over year; net profit attributable to shareholders was RMB 1.966 billion, up 36.14% year over year; net profit after deducting non-recurring items attributable to shareholders was RMB 2.418 billion, up 24.48% year over year; and basic earnings per share were RMB 1.1561 per share.

Since the company listed in February 2000, it has paid cash dividends 19 times, with cumulative cash dividends implemented of RMB 2.15 billion. The announcement shows that the company plans to distribute a cash dividend of RMB 2.5 per 10 shares to all shareholders (including tax).

The listed-company financial report hawk-eye early warning system conducts an intelligent quantitative analysis of Tin Industry Co., Ltd.’s 2025 annual report across four major dimensions: performance quality, profitability, funding pressure and safety, and operating efficiency.

1. Performance Quality

In the reporting period, the company’s operating revenue was RMB 43.535 billion, up 3.72%; net profit was RMB 2.11 billion, up 34.37%; and net cash flow from operating activities was RMB 1.295 billion, down 61.95% year over year.

From the perspective of the matching of income, cost, and period expenses, it is necessary to pay key attention to:

• Operating revenue and taxes and surcharges moved in opposite directions. In the reporting period, operating revenue changed by 3.72% year over year, while taxes and surcharges changed by -2.23% year over year; operating revenue and taxes and surcharges moved in opposite directions.

Combining with the quality of operating assets, it is necessary to pay key attention to:

• Inventory growth is higher than growth in operating cost. In the reporting period, inventory increased by 43.47% compared with the beginning of the period; operating cost increased by 1.68% year over year; inventory growth is higher than operating cost growth.

• Inventory growth is higher than operating revenue growth. In the reporting period, inventory increased by 43.47% compared with the beginning of the period; operating revenue increased by 3.72% year over year; inventory growth is higher than operating revenue growth.

Combining with cash flow quality, it is necessary to pay key attention to:

• Operating revenue and net cash flow from operating activities moved in opposite directions. In the reporting period, operating revenue increased by 3.72% year over year, while net cash flow from operating activities decreased by 61.95% year over year; operating revenue and net cash flow from operating activities moved in opposite directions.

• The ratio of net cash flow from operating activities to net profit is below 1. In the reporting period, the ratio of net cash flow from operating activities to net profit was 0.614, below 1, indicating relatively weak earnings quality.

2. Profitability

In the reporting period, the company’s gross margin was 11.37%, up 18.6% year over year; net profit margin was 4.85%, up 29.55% year over year; and return on equity (weighted) was 9.77%, up 27.05% year over year.

From the company’s operating side and returns, it is necessary to pay key attention to:

• Sales gross margin increased significantly. In the reporting period, sales gross margin was 11.37%, up significantly by 18.6% year over year.

• Sales gross margin continues to increase, while inventory turnover keeps declining. In the past three annual reports, sales gross margin was 9.15%, 9.59%, and 11.37%, continuing to rise; inventory turnover was 6.2, 5.42, and 4.2, continuing to decline.

3. Funding Pressure and Safety

In the reporting period, the company’s asset-liability ratio was 42.9%, up 6.74% year over year; the current ratio was 1.31, and the quick ratio was 0.47; total debt was RMB 11.002 billion, including short-term debt of RMB 8.529 billion, with short-term debt accounting for 77.52% of total debt.

From the perspective of short-term funding pressure, it is necessary to pay key attention to:

• The ratio of short-term to long-term debt continues to rise. In the past three annual reports, the ratio of short-term debt to long-term debt was 0.6, 0.77, and 2.62, showing an increasing trend in the short-term-to-long-term debt ratio.

• Short-term debt is relatively high, leaving a gap in existing funds. In the reporting period, broad money funds were RMB 2.88 billion, short-term debt was RMB 8.53 billion, and broad money funds / short-term debt was 0.34; broad money funds were lower than short-term debt.

• Short-term debt pressure is significant, putting strain on the capital chain. In the reporting period, broad money funds were RMB 2.88 billion, short-term debt was RMB 8.53 billion, and net cash flow from operating activities was RMB 1.3 billion; there is a gap between short-term debt, financial expenses, money funds, and net cash flow from operating activities.

• The cash ratio is less than 0.25. In the reporting period, the cash ratio was 0.2, below 0.25.

From the perspective of capital management, it is necessary to pay key attention to:

• Interest income / cash and cash equivalents ratio is below 1.5%. In the reporting period, cash and cash equivalents were RMB 2.55 billion, short-term debt was RMB 8.53 billion, and the company’s average interest income / cash and cash equivalents ratio was 1.346%, below 1.5%.

• Prepayments are subject to large changes. In the reporting period, prepayments were RMB 0.5 billion, and the change rate compared with the beginning of the period was 169.23%.

• The growth rate of prepayments is higher than the growth rate of operating costs. In the reporting period, prepayments increased by 169.23% compared with the beginning of the period; operating costs increased by 1.68% year over year; the prepayments growth rate is higher than the operating cost growth rate.

• Other receivables show large changes. In the reporting period, other receivables were RMB 2.55 billion, and the change rate compared with the beginning of the period was 261.98%.

From the perspective of capital coordination, it is necessary to pay key attention to:

• Capital coordination is in place, but there are payment difficulties. In the reporting period, working capital was RMB 3.95 billion; the company’s working capital needs were RMB 5.71 billion; the working capital brought by investing and financing activities could not fully cover the funding needs of the company’s operating activities; and the company’s cash payment capability was -RMB 1.76 billion.

4. Operating Efficiency

In the reporting period, the company’s accounts receivable turnover rate was 82.33, up 12.87% year over year; inventory turnover was 4.2, down 22.44% year over year; and total asset turnover was 1.13, down 0.56% year over year.

From the perspective of operating assets, it is necessary to pay key attention to:

• Inventory turnover continues to decline. In the past three annual reports, inventory turnover was 6.2, 5.42, and 4.2 respectively, and the company’s inventory turnover ability has been weakening.

• The ratio of inventory to total assets continues to increase. In the past three annual reports, the ratio of inventory to total assets was 17.45%, 20.59%, and 26.91% respectively, showing continuous growth.

From the perspective of long-term assets, it is necessary to pay key attention to:

• Total asset turnover continues to decline. In the past three annual reports, total asset turnover was 1.15, 1.14, and 1.13 respectively, indicating that the company’s total asset turnover ability has been weakening.

Click Tin Industry Co., Ltd.’s Hawk-Eye Early Warning to view the latest 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 analytical system for listed company financial reports. The hawk-eye early warning gathers a large number of authoritative financial experts, including accounting firms and listed companies, and tracks and interprets the latest financial reports of listed companies across multiple dimensions such as company earnings growth, earnings quality, funding pressure and safety, and operating efficiency. It also uses text and images to flag potential financial risk points. It provides technical solution services for professional, efficient, and convenient identification and early-warning of financial risks for financial institutions, listed companies, regulatory authorities, and others.

Hawk-Eye Early Warning entry: Sina Finance app - Quotes - Data Center - Hawk-Eye Early Warning, or Sina Finance app - Individual stock quotes page - Finance - Hawk-Eye Early Warning

Statement: The market involves risk; investment requires caution. This article is automatically published based on third-party databases and does not represent Sina Finance’s viewpoint. Any information appearing in this article is for reference only and does not constitute personal investment advice. If there are discrepancies, please refer to the actual announcement. If you have any questions, please contact biz@staff.sina.com.cn.

Massive information and precise interpretation—right in the Sina Finance app

责任编辑：小浪快报