Eagle Eye Warning: South Asia New Material's accounts receivable growth rate exceeds revenue growth rate

Sina Finance Listed Company Research Institute | Financial Report Eagle Eye Warning

On March 25, Nanya New Materials released its 2025 annual report.

The report shows that the company’s total operating revenue for 2025 is 5.23B yuan, a year-on-year increase of 55.52%; net profit attributable to the parent company is 240 million yuan, up 377.6% year-on-year; non-recurring net profit attributable to the parent is 218 million yuan, up 677.46% year-on-year; basic earnings per share are 1.07 yuan/share.

Since its listing in July 2020, the company has paid cash dividends five times, with a total cash dividend of 205 million yuan.

The Listed Company Financial Report Eagle Eye Warning System performs intelligent quantitative analysis of Nanya New Materials’ 2025 annual report from four major dimensions: performance quality, profitability, capital pressure and safety, and operational efficiency.

1. Performance Quality Level

During the reporting period, the company’s revenue was 5.23B yuan, a 55.52% increase; net profit was 240 million yuan, up 377.6%; net cash flow from operating activities was -83.1846 million yuan, down 125.57% year-on-year.

From the perspective of revenue, cost, and period expenses ratio, key points to monitor:

• The change in sales expenses differs greatly from the change in operating revenue. During the reporting period, operating revenue increased by 55.52% year-on-year, while sales expenses increased by 25.87%, showing a significant difference.

Considering operational asset quality, key points to focus on:

• Growth rate of accounts receivable notes exceeds that of operating revenue. During the period, accounts receivable notes increased by 67.52% from the beginning of the period, while operating revenue increased by 55.52%, indicating a higher growth rate.

• Growth rate of accounts receivable exceeds that of operating revenue. During the period, accounts receivable increased by 68.59% from the beginning, while operating revenue increased by 55.52%, showing a higher growth rate.

• The ratio of accounts receivable to operating revenue continues to grow. In the past three annual reports, the ratios are 36.69%, 43.52%, and 47.18%, respectively, showing a continuous upward trend.

• Inventory growth exceeds that of operating costs. During the period, inventory increased by 66.29% from the beginning, while operating costs increased by 50.15%, indicating inventory growth outpacing costs.

• Inventory growth exceeds that of operating revenue. Inventory increased by 66.29% from the beginning, while operating revenue increased by 55.52%.

From the perspective of cash flow quality, key points to monitor:

• Divergence between operating revenue and net cash flow from operating activities. During the period, operating revenue increased by 55.52%, while net cash flow from operating activities decreased by 125.57%, indicating a divergence.

• Divergence between net profit and net cash flow from operating activities. During the period, net profit was 240 million yuan, while net cash flow from operating activities was -83.1846 million yuan, showing a divergence.

• The ratio of net cash flow from operating activities to net profit is below 1. During the period, this ratio was -0.346, indicating weak earnings quality.

2. Profitability Level

During the reporting period, the company’s gross profit margin was 11.8%, a 36.47% increase; net profit margin was 4.6%, up 207.1%; return on equity (weighted) was 9.12%, an increase of 342.72%.

From the perspective of operational profitability, key points to focus on:

• Significant increase in gross profit margin. During the period, gross profit margin was 11.8%, a substantial increase of 36.47%.

3. Capital Pressure and Safety

During the reporting period, the company’s asset-liability ratio was 52.14%, an increase of 11.26% year-on-year; current ratio was 1.46, quick ratio was 1.25; total debt was 1.16B yuan, with short-term debt of 2.74B yuan, accounting for 100% of total debt.

Overall financial condition to monitor:

• Asset-liability ratio continues to rise. In the past three annual reports, ratios are 45.55%, 46.86%, and 52.14%, showing an upward trend.

From short-term capital pressure, key points to monitor:

• The ratio of short-term to long-term debt has increased significantly. During the period, short-term debt to long-term debt rose sharply to 39.84.

• Cash ratio continues to decline. In the past three annual reports, cash ratios are 0.56, 0.55, and 0.36, showing a downward trend.

From capital management perspective, key points to monitor:

• Large fluctuations in prepayment accounts. During the period, prepayment accounts were 9.128 million yuan, with a change rate of 61.02% from the beginning.

• The ratio of prepayment accounts to current assets continues to grow. In the past three annual reports, ratios are 0.19%, 0.2%, and 0.22%, respectively.

• Growth rate of prepayment accounts exceeds that of operating costs. During the period, prepayment accounts increased by 61.02% from the beginning, while operating costs increased by 50.15%.

• Significant change in notes payable. During the period, notes payable were 810 million yuan, a 32.04% change from the beginning.

From capital coordination perspective, key points to monitor:

• Capital coordination exists but with payment difficulties. During the period, working capital was 1.32 billion yuan, the company’s working capital demand was 1.44 billion yuan, and funds from investment and financing activities could not fully cover the company’s operating needs, with cash payment capacity at -120 million yuan.

4. Operating Efficiency Level

During the period, accounts receivable turnover was 2.66, up 1.21; inventory turnover was 9.88, up 32.02%; total asset turnover was 0.99, up 33.23%.

From operational assets, key points to monitor:

• The proportion of accounts receivable / total assets continues to grow. In the past three annual reports, ratios are 24.35%, 32%, and 41.03%, respectively.

From long-term assets, key points to monitor:

• Significant change in intangible assets. During the period, intangible assets were 10 million yuan, an increase of 76.59% from the beginning.

Click on Nanya New Materials Eagle Eye Warning to view the latest warning details and visualized financial report preview.

Sina Finance Listed Company Financial Report Eagle Eye Warning Introduction: The Eagle Eye Warning system is an intelligent professional analysis system for listed company financial reports. It gathers authoritative financial experts from accounting firms and listed companies to track and interpret the latest financial reports from multiple dimensions such as company performance growth, earnings quality, capital pressure and safety, and operational efficiency, providing visual alerts of potential financial risks. It offers professional, efficient, and convenient technical solutions for financial risk identification and early warning for financial institutions, listed companies, and regulatory authorities.

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