Eagle Eye Warning: Montai High-Tech’s ratio of net cash flow from operating activities to net profit continues to decline

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

On April 2, Montai Hi-Tech released its 2025 annual report.

The report shows that the company’s full-year 2025 operating revenue was RMB 518 million, up 5.08%; net profit attributable to shareholders was -RMB 61.9447 million, up 4.03%; net profit after deducting non-recurring gains and losses attributable to shareholders was -RMB 70.21M, down 6.09% year over year; basic earnings per share was -0.6295 yuan/share.

Since the company went public in August 2020, it has carried out cash dividends 4 times, with cumulative cash dividends implemented totaling RMB 86.3085 million.

The listed companies’ financial report hawk-eye warning system conducts intelligent quantitative analysis of Montai Hi-Tech’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 RMB 518 million, up 5.08%; net profit was -RMB 64.09M, up 6.64%; net cash flow from operating activities was RMB 78.9428 million, up 297.86%.

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

• Operating profit is negative for three consecutive quarters. During the reporting period, over the past three quarters, operating profit was -20M yuan, -20M yuan, and -10M yuan, continuing to be negative.

| Item | 20250630 | 20250930 | 20251231 | | Operating profit (yuan) | -22.42 million | -17.5819 million | -12.6309 million |

• Net profit has been亏 for two consecutive years. In the past three period annual reports, net profit was 20M yuan, -70M yuan, and -60M yuan respectively, for two consecutive years of亏.

| Item | 20231231 | 20241231 | 20251231 | | Net profit (yuan) | 19.7471 million | -68.6492 million | -64.09M |

Combined 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 interim reports, the ratio of net cash flow from operating activities to net profit was 2.44, 0.58, and -1.23 respectively, continuing to decline, indicating a downward trend in earnings quality.

| Item | 20231231 | 20241231 | 20251231 | | Net cash flow from operating activities (yuan) | 48.1421 million | -39.8977 million | 78.9428 million | | Net profit (yuan) | 19.7471 million | -68.6492 million | -64.09M | | Net cash flow from operating activities / Net profit | 2.44 | 0.58 | -1.23 |

II. Profitability

During the reporting period, the company’s gross margin was 3.01%, down 61.09% year over year; net margin was -12.38%, up 11.15% year over year; return on net assets (weighted) was -7.41%, up 3.14% year over year.

From the company’s operating side in terms of returns, it is necessary to focus on:

• Gross margin on sales continues to decline. In the past three annual reports, the gross margin on sales was 18.52%, 7.73%, and 3.01% respectively, with the downward trend continuing.

• Sales gross margin declines, and sales net margin increases. During the reporting period, the sales gross margin fell from 7.73% in the same period last year to 3.01%, and the sales net margin increased from -13.94% in the same period last year to -12.38%.

Combined with the company’s asset side in terms of returns, it is necessary to focus on:

• The average return on net assets is below 7% over the most recent three years. During the reporting period, the weighted average return on net assets was -7.41%, and the weighted average return on net assets averaged below 7% over the most recent three accounting years.

| Item | 20231231 | 20241231 | 20251231 | | Return on net assets | 2.59% | -7.65% | -7.41% | | Return on net assets growth rate | -57.54% | -395.37% | 3.14% |

• Return on invested capital is below 7%. During the reporting period, the company’s return on invested capital was -2.42%, and the average value across the three reporting periods was below 7%.

| Item | 20231231 | 20241231 | 20251231 | | Return on invested capital | 1.81% | -3.12% | -2.42% |

From the perspective of customer concentration and minority shareholders, it is necessary to focus on:

• The top five suppliers account for a relatively large share of procurement. During the reporting period, the ratio of procurement amount from the top five suppliers to total procurement amount was 64.33%, so be cautious about the risk of excessive dependency on suppliers.

III. Capital Pressure and Safety

During the reporting period, the company’s asset-liability ratio was 40.7%, down 14.05% year over year; the current ratio was 1.1, and the quick ratio was 0.88; total debt was RMB 632 million, of which short-term debt was RMB 242 million, and short-term debt as a proportion of total debt was 38.25%.

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

• Large short-term debt, and an existing capital gap. During the reporting period, broad monetary funds were RMB 140 million, short-term debt was RMB 190 million, the ratio of broad monetary funds to short-term debt was 0.74, and broad monetary funds were lower than short-term debt.

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%. During the reporting period, monetary funds were RMB 90 million, short-term debt was RMB 190 million, and the company’s average ratio of interest income to monetary funds was 0.346%, below 1.5%.

• The growth rate of advances to suppliers is higher than the growth rate of operating costs. During the reporting period, advances to suppliers increased 27.06% from the beginning of the period, operating costs grew 10.45% year over year, and the growth rate of advances to suppliers is higher than that of operating costs.

| Item | 20231231 | 20241231 | 20251231 | | Advances to suppliers vs. beginning of period growth rate | -59.33% | -35.56% | 27.06% | | Operating cost growth rate | 19.64% | 22.7% | 10.45% |

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

• Capital expenditures continue to exceed net cash inflow from operating activities. In the past three annual reports, the cash paid to acquire fixed assets, intangible assets, and other long-term assets was RMB 360 million, RMB 350 million, and RMB 320 million respectively; the company’s net cash flow from operating activities was RMB 50 million, -RMB 40 million, and RMB 80 million respectively.

• Capital is coordinated but there are payment difficulties. During the reporting period, working capital was RMB 30 million; the company’s working capital needs were RMB 140 million; operating and financing activities’ working capital could not fully cover the working capital needs of the company’s operating activities; the company’s cash payment capability was -RMB 110 million.

| Item | 20251231 | | Cash payment capability (yuan) | -109 million | | Working capital needs (yuan) | 142 million | | Working capital (yuan) | 32.9727 million |

IV. Operating Efficiency

During the reporting period, the company’s accounts receivable turnover was 3.94, up 5.45%; inventory turnover was 6.03, down 7.44%; total asset turnover was 0.29, down 7.4%.

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

• Total asset turnover continues to decline. In the past three annual reports, total asset turnover was 0.34, 0.31, and 0.29 respectively, and the company’s ability to turn assets into revenue is weakening.

• Construction in progress has changed significantly. During the reporting period, construction in progress was RMB 290 million, up 427.84% from the beginning of the period.

• Other non-current assets account for a relatively high proportion. During the reporting period, other non-current assets / total assets was 18.7%.

• Other non-current assets changed significantly. During the reporting period, other non-current assets were RMB 350 million, up 35.71% from the beginning of the period.

Click Montai Hi-Tech’s hawk-eye warning to view the latest warning details and a visual preview of the financial report.

Introduction to Sina Finance listed companies’ financial report hawk-eye warning: The financial report hawk-eye warning for listed companies is a specialized, intelligent analysis system for financial reports of listed companies. Through gathering a large number of authoritative financial experts such as accounting firms and listed company personnel, the hawk-eye warning tracks and interprets the latest financial reports of listed companies across multiple dimensions including the company’s performance growth, earnings quality, capital pressure and safety, and operating efficiency, and highlights potential financial risk points in a graphical and textual format. It provides technical solutions for professional, efficient, and convenient identification and early warning of financial risks for financial institutions, listed companies, regulatory authorities, and others.

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Responsible Editor: Xiao Lang Express