Eagle Eye Warning: Kote Shares have significant short-term debt, with a gap in existing funds.

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

On April 1, Kaiti Co., Ltd. released its 2025 annual report. The audit opinion is a standard unmodified audit opinion.

The report shows that the company’s operating revenue for the full year of 2025 was RMB 1.13B, up 36.68% year over year; its net profit attributable to shareholders was RMB 173 million, up 25.62%; net profit after deducting non-recurring items attributable to shareholders was RMB 171 million, up 32.85%; and basic earnings per share were RMB 0.97 per share.

Since the company’s listing in September 2023, it has issued cash dividends 4 times, with a cumulative implemented cash dividend of RMB 191 million.

The Listed Company Earnings Hawk-Eye Early Warning System conducts intelligent quantitative analysis of Kaiti Co., Ltd.’s 2025 annual report from four major dimensions: earnings quality, profitability, capital pressure and safety, and operating efficiency, among others.

I. Earnings Quality

In the reporting period, the company’s revenue was RMB 1.13B, up 36.68%; net profit was RMB 173 million, up 25.66%; and net cash flow from operating activities was RMB 167 million, up 32.73%.

Based on the quality of operating assets, it is necessary to focus on:

• The growth rate of notes receivable is higher than the growth rate of operating revenue. During the reporting period, notes receivable increased by 59.4% compared with the beginning of the period, operating revenue rose by 36.68% year over year, and the growth rate of notes receivable was higher than the growth rate of operating revenue.

| Item | 20231231 | 20241231 | 20251231 | | Revenue growth rate | - | 26.5% | 36.68% | | Notes receivable growth rate vs. beginning of period | - | - | 59.4% |

II. Profitability

In the reporting period, the company’s gross margin was 32.11%, down 1.66% year over year; net profit margin was 15.33%, down 8.06% year over year; and return on net assets (weighted) was 23.49%, up 8.6% year over year.

III. Capital Pressure and Safety

In the reporting period, the company’s asset-liability ratio was 46.28%, up 11.86% year over year; the current ratio was 1.59, and the quick ratio was 1.19; total debt was RMB 186 million, of which short-term debt was RMB 186 million. The ratio of short-term debt to total debt was 100%.

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

• The ratio of short-term to long-term debt increased significantly. During the reporting period, short-term debt/long-term debt increased significantly to 37.3.

| Item | 20231231 | 20241231 | 20251231 | | Short-term debt (RMB) | - | 51.51 million | 137 million | | Long-term debt (RMB) | - | 3.7122 million | 3.6695 million | | Short-term debt/long-term debt | - | 13.88 | 37.3 |

• Significant short-term debt, with a cash stock shortfall. During the reporting period, broad monetary funds were RMB 110 million, short-term debt was RMB 140 million, broad monetary funds/short-term debt was 0.82, and broad monetary funds were lower than short-term debt.

• The cash ratio is less than 0.25. During the reporting period, the cash ratio was 0.18, which is lower than 0.25.

| Item | 20231231 | 20241231 | 20251231 | | Cash ratio | - | 0.36 | 0.18 |

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

• Interest income/monetary funds ratio is less than 1.5%. During the reporting period, monetary funds were RMB 70 million, short-term debt was RMB 140 million, and the average ratio of the company’s interest income to monetary funds was 0.191%, lower than 1.5%.

| Item | 20231231 | 20241231 | 20251231 | | Monetary funds (RMB) | - | 68.78 million | 71.72 million | | Short-term debt (RMB) | - | 51.51 million | 137 million | | Interest income/average monetary funds | - | - | 0.19% |

• Prepayments increased significantly. During the reporting period, prepayments were RMB 7.88M, and the change rate compared with the beginning of the period was 385.52%.

• The growth rate of prepayments is higher than the growth rate of operating costs. During the reporting period, prepayments increased by 385.52% compared with the beginning of the period, operating costs grew by 37.78% year over year, and the growth rate of prepayments was higher than the growth rate of operating costs.

| Item | 20231231 | 20241231 | 20251231 | | Prepayments growth rate vs. beginning of period | - | - | 385.52% | | Operating cost growth rate | - | 27.42% | 37.78% |

• Other receivables changed significantly. During the reporting period, other receivables were RMB 1.44M, and the change rate compared with the beginning of the period was 31.77%.

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

• Capital coordination exists, but there are payment difficulties. During the reporting period, working capital was RMB 370 million; the company’s working capital needs were RMB 390 million; working capital brought by investing and financing activities could not fully cover the company’s funding needs for operating activities; and the company’s ability to make cash payments was -RMB 30 million.

| Item | 20251231 | | Cash payment ability (RMB) | -27.97M | | Working capital needs (RMB) | 394M | | Working capital (RMB) | 366M |

IV. Operating Efficiency

In the reporting period, the company’s accounts receivable turnover ratio was 2.3, up 7.69% year over year; inventory turnover ratio was 3.26, up 15.02% year over year; and total asset turnover ratio was 0.86, up 8.63% year over year.

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

• Fixed assets changed significantly. During the reporting period, fixed assets were RMB 300 million, up 60.46% compared with the beginning of the period.

• Construction in progress changed significantly. During the reporting period, construction in progress was RMB 50 million, up 83.81% compared with the beginning of the period.

• Long-term deferred expenses changed significantly compared with the beginning of the period. During the reporting period, long-term deferred expenses were RMB 366M, up 1670.34% compared with the beginning of the period.

• Other non-current assets changed significantly. During the reporting period, other non-current assets were RMB 20 million, up 243.18% compared with the beginning of the period.

• Intangible assets changed significantly. During the reporting period, intangible assets were RMB 40 million, up 76.8% compared with the beginning of the period.

From the “three expense” dimensions, it is necessary to focus on:

• Administrative expense growth rate exceeded 20%. During the reporting period, administrative expenses were RMB 70 million, up 37.83% year over year.

| Item | 20231231 | 20241231 | 20251231 | | Administrative expenses (RMB) | - | 47.33 million | 65.24 million | | Administrative expense growth rate | - | 29.59% | 37.83% |

• Administrative expense growth rate exceeded revenue growth. During the reporting period, administrative expenses increased by 37.83% year over year, while operating revenue increased by 36.68% year over year; administrative expense growth rate was higher than the revenue growth rate.

| Item | 20231231 | 20241231 | 20251231 | | Operating revenue growth rate | - | 26.5% | 36.68% | | Administrative expense growth rate | - | 29.59% | 37.83% |

Click Kaiti Co., Ltd.’s Hawk-Eye Early Warning to view the latest warning details and a visual preview of the financial reports.

Introduction to Sina Finance Listed Company Earnings Hawk-Eye Early Warning: The Listed Company Earnings Hawk-Eye Early Warning is a professional intelligent analysis system for listed company earnings reports. Through gathering a large number of authoritative financial experts from accounting firms and listed companies, Hawk-Eye Early Warning tracks and interprets the latest earnings reports of listed companies across multiple dimensions such as company earnings growth, earnings quality, capital pressure and safety, and operating efficiency, and uses text-and-image formats to highlight potential financial risk points. It provides professional, efficient, and convenient technical solutions for identifying and issuing early warnings on financial risks for financial institutions, listed companies, regulatory departments, and others.

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