Eagle Eye Warning: The ratio of accounts receivable to operating income in Western Construction continues to increase

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

On April 2, Xibu Construction released its 2025 annual report.

The report shows that the company’s operating revenue for 2025 was CNY 18.11B, down 11.01% year over year; net profit attributable to shareholders was CNY -730 million, down 177.96% year over year; net profit after deducting non-recurring items attributable to shareholders was CNY -821 million, down 145.62% year over year; and basic earnings per share was -0.5913 yuan per share.

Since the company went public in October 2009, it has issued cash dividends 15 times, with a total of CNY 1.24B in cash dividends implemented.

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

I. Performance Quality

During the reporting period, the company’s revenue was CNY 18.11B, down 11.01% year over year; net profit was CNY -735 million, down 233.12% year over year; and net cash flow from operating activities was CNY -540 million, down 200.22% year over year.

From the overall performance perspective, it is important to focus on:

• Operating revenue growth continues to decline. In the last three annual reports, the year-over-year changes in operating revenue were -8.17%, -11.01%, and -11.01% respectively, and the downward trend has continued.

• The growth rate of net profit attributable to shareholders continues to decline. In the last three annual reports, the year-over-year changes in net profit attributable to shareholders were 16.11%, -140.71%, and -177.96% respectively, and the downward trend has continued.

| Item | 20231231 | 20241231 | 20251231 | | Net profit attributable to shareholders (yuan) | CNY 645 million | CNY -263 million | CNY -730 million | | Net profit attributable to shareholders growth rate | 16.11% | -140.71% | -177.96% |

• Non-recurring profit attributable to shareholders declined significantly. During the reporting period, non-recurring profit attributable to shareholders was CNY -820 million, down significantly by 145.62% year over year.

| Item | 20231231 | 20241231 | 20251231 | | Non-recurring profit attributable to shareholders (yuan) | CNY 572 million | CNY -334 million | CNY -821 million | | Non-recurring profit attributable to shareholders growth rate | 18.11% | -158.49% | -145.62% |

• Net profit has been in losses for two consecutive years. In the last three annual reports, net profit was CNY 730 million, CNY -220 million, and CNY -730 million, with losses for two consecutive years.

| Item | 20231231 | 20241231 | 20251231 | | Net profit (yuan) | CNY 725 million | CNY -221 million | CNY -735 million |

Combined with the quality of operating assets, it is important to focus on:

• Accounts receivable-to-operating revenue ratio continues to rise. In the last three annual reports, the accounts receivable-to-operating revenue ratio was 102.37%, 111.34%, and 123.66% respectively, showing continuous growth.

II. Profitability

During the reporting period, the company’s gross margin was 4.83%, down 36.35% year over year; net margin was -4.06%, down 274.32% year over year; and return on net assets (weighted) was -8.86%, down 180.38% year over year.

Combined with the company’s operating-side performance, it is important to focus on:

• Sales gross margin continues to decline. In the last three annual reports, sales gross margin was 11.34%, 7.59%, and 4.83% respectively, with a continuous downward trend.

• Sales net margin fluctuates. During the reporting period, the company’s sales net margin for Q1 to Q4 was -7.19%, 6.18%, -0.32%, and -2.73% respectively, with year-over-year changes of 163.65%, 107.18%, -323.82%, and 83.51% respectively; sales net margin fluctuated.

| Item | 20250331 | 20250630 | 20250930 | 20251231 | | Sales net margin | -7.19% | 6.18% | -0.32% | -2.73% | | Sales net margin growth rate | 163.65% | 107.18% | -323.82% | 83.51% |

• Sales net margin continues to decline. In the last three annual reports, sales net margin was 3.17%, -1.08%, and -4.06% respectively, with a continuous downward trend.

| Item | 20231231 | 20241231 | 20251231 | | Sales net margin | 3.17% | -1.08% | -4.06% | | Sales net margin growth rate | 9.24% | -134.18% | -274.32% |

Combined with the company’s asset-side returns, it is important to focus on:

• Average return on net assets has been below 7% for the past three years. During the reporting period, the weighted average return on net assets was -8.86%; the weighted average return on net assets for the most recent three accounting years averaged below 7%.

| Item | 20231231 | 20241231 | 20251231 | | Return on net assets | 6.81% | -3.16% | -8.86% | | Return on net assets growth rate | 15.82% | -146.4% | -180.38% |

• Return on net assets continues to decline. In the last three annual reports, the weighted average return on net assets was 6.81%, -3.16%, and -8.86% respectively, with a continuous downward trend.

| Item | 20231231 | 20241231 | 20251231 | | Return on net assets | 6.81% | -3.16% | -8.86% | | Return on net assets growth rate | 15.82% | -146.4% | -180.38% |

• Return on invested capital is below 7%. During the reporting period, the company’s return on invested capital was -5.18%, and the average value across the three reporting periods was below 7%.

| Item | 20231231 | 20241231 | 20251231 | | Return on invested capital | 4.78% | -0.97% | -5.18% |

III. Capital Pressure and Safety

During the reporting period, the company’s asset-liability ratio was 69.41%, up 2.06% year over year; the current ratio was 1.27, and the quick ratio was 1.25; total debt was CNY 18.11B, of which short-term debt was CNY 3.63B, and the ratio of short-term debt to total debt was 84.19%.

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

• The asset-liability ratio continues to increase. In the last three annual reports, the asset-liability ratio was 67.8%, 68.0%, and 69.41% respectively, showing an increasing trend.

From short-term capital pressure, it is important to focus on:

• The short-term-to-long-term debt ratio increased significantly. During the reporting period, the ratio of short-term debt to long-term debt increased significantly to 1.8.

• The cash ratio is less than 0.25. During the reporting period, the cash ratio was 0.13, which is below 0.25.

From a perspective of capital management and control, it is important to focus on:

• The interest income/monetary funds ratio is below 1.5%. During the reporting period, monetary funds were CNY 2.07 billion, and short-term debt was CNY 1.98 billion. The company’s average interest income/monetary funds ratio was 0.58%, lower than 1.5%.

From the perspective of capital coordination, it is important to focus on:

• CFO, CFI, and CFF are all negative. During the reporting period, the net cash flow from operating activities, net cash flow from investing activities, and net cash flow from financing activities were all negative, at -5.4 hundred million yuan, -0.8 hundred million yuan, and -6.9 hundred million yuan respectively; it is necessary to pay attention to risks in the capital chain.

| Item | 20251231 | | Operating activities—net cash flow (yuan) | -5.4 hundred million | | Investing activities—net cash flow (yuan) | -7582.09 thousand | | Financing activities—net cash flow (yuan) | -6.91 hundred million |

IV. Operating Efficiency

During the reporting period, the company’s accounts receivable turnover ratio was 0.8, down 9% year over year; inventory turnover ratio was 40.82, down 18.19% year over year; and total asset turnover ratio was 0.55, down 7.52% year over year.

From operating assets, it is important to focus on:

• Accounts receivable turnover ratio keeps declining. In the last three annual reports, accounts receivable turnover ratio was 1.02, 0.88, and 0.8 respectively, indicating weakening accounts receivable turnover capability.

• Inventory turnover ratio continues to decline. In the last three annual reports, inventory turnover ratio was 54.56, 49.89, and 40.82 respectively, indicating weakening inventory turnover capability.

• The inventory/total assets ratio continues to increase. In the last three annual reports, the inventory/total assets ratio was 1.06%, 1.16%, and 1.43% respectively, showing continuous growth.

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

• Total asset turnover ratio continues to decline. In the last three annual reports, total asset turnover ratio was 0.67, 0.6, and 0.55 respectively, indicating weakening total asset turnover capability.

• Unit fixed-asset revenue output decreases year by year. In the last three annual reports, the ratio of operating revenue to original value of fixed assets was 10, 8.28, and 7.62 respectively, continuing to decline.

From the “three expenses” dimension, it is important to focus on:

• The ratio of selling expenses to operating revenue continues to increase. In the last three annual reports, the ratio of selling expenses to operating revenue was 0.98%, 1.21%, and 1.33% respectively, showing continuous growth.

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

Sina Finance Listed Companies Financial Report Hawk-Eye Early Warning Introduction: The listed companies financial report hawk-eye early warning is an intelligent, specialized analysis system for corporate financial reports. By aggregating a large number of authoritative financial experts, including accounting firms and listed companies, the hawk-eye early warning 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 uses text-and-image formats to flag potential financial risk points. It provides professional, efficient, and convenient technical solution for identifying and issuing early warnings on financial risks of listed companies 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—Stock quote page—Finance—Hawk-Eye Early Warning

Disclaimer: The market involves risks; investment is cautious. This article is automatically published based on third-party databases and does not represent Sina Finance’s positions. 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 announcements. If you have any questions, please contact biz@staff.sina.com.cn.