Eagle Eye Warning: Evergreen Group's Operating Revenue Declines

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

On March 30, Qingqing Group released its 2025 annual report.

The report shows that the company’s full-year operating revenue in 2025 was 3.666 billion yuan, down 3.17% year over year; net profit attributable to shareholders was 280 million yuan, up 29.33% year over year; non-recurring profit net profit attributable to shareholders was 144 million yuan, down 26.27% year over year; and basic earnings per share was 0.3261 yuan per share.

Since going public in August 2011, the company has made cash dividends 11 times, with cumulative cash dividends already implemented totaling 939 million yuan.

The listed companies’ financial report Hawk-Eye Early Warning System conducts an intelligent quantitative analysis of Qingqing Group’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 3.6666 billion yuan, down 3.17% year over year; net profit was 283 million yuan, up 28.83% year over year; and net cash flow from operating activities was 811 million yuan, up 37.13% year over year.

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

• Operating revenue declined. During the reporting period, operating revenue was 3.67 billion yuan, down 3.17% year over year.

• The growth rate of net profit attributable to shareholders continues to decline. In the past three reporting periods’ annual reports, the year-over-year changes in net profit attributable to shareholders were 108.15%, 36.25%, and 29.33%, respectively, and the downward trend in the change continues.

• The growth rate of non-recurring profit net profit attributable to shareholders continues to decline. In the past three reporting periods’ annual reports, the year-over-year changes in non-recurring profit net profit attributable to shareholders were 144.91%, 26.88%, and -26.27%, respectively, and the downward trend in the change continues.

• Divergence between changes in operating revenue and net profit. During the reporting period, operating revenue was down 3.17% year over year, while net profit was up 28.83% year over year; operating revenue and net profit diverged in their changes.

From the perspective of the mix between revenue and costs, and period expenses, it is important to focus on:

• Divergence between operating revenue and taxes and surcharges. During the reporting period, operating revenue changed by -3.17% year over year, taxes and surcharges changed by 8.71% year over year; operating revenue and taxes and surcharges diverged in their changes.

Combining with cash flow quality, it is important to focus on:

• Divergence between operating revenue and net cash flow from operating activities. During the reporting period, operating revenue was down 3.17% year over year, while net cash flow from operating activities was up 37.13% year over year; operating revenue and net cash flow from operating activities diverged in their changes.

II. Profitability

During the reporting period, the company’s gross margin was 22.06%, up 13.23% year over year; net profit margin was 7.71%, up 33.05% year over year; and return on net assets (weighted) was 8.24%, up 3.26% year over year.

Combining the company’s operating-side returns, it is important to focus on:

• Sales gross margin surged. During the reporting period, sales gross margin was 22.06%, up significantly 13.23% year over year.

• Sales gross margin increased, while inventory turnover declined. During the reporting period, sales gross margin increased from 19.48% in the same period last year to 22.06%, and inventory turnover decreased from 13.41 times in the same period last year to 10.42 times.

• Sales gross margin increased, while accounts receivable turnover declined. During the reporting period, sales gross margin increased from 19.48% in the same period last year to 22.06%, and accounts receivable turnover decreased from 1.19 times in the same period last year to 1.12 times.

Combining returns from the company’s asset side, it is important to focus on:

• Return on invested capital is below 7%. During the reporting period, the company’s return on invested capital was 6.02%, and the average value across the three reporting periods was below 7%.

From unconventional gains and losses, it is important to focus on:

• Unconventional gains represent a high proportion. During the reporting period, unconventional gains/net profit was 55.9%. (Note: Unconventional gains = net investment gains + net gains from fair value changes + non-operating income + losses from disposal of non-current assets).

• Cash inflows from disposing of equity or assets are relatively large. During the reporting period, the ratio of net cash inflows from disposing of subsidiary equity or real estate to net profit was 208.46%.

III. Capital Pressure and Safety

During the reporting period, the company’s asset-liability ratio was 62.35%, down 14.85% year over year; the current ratio was 1.53, and the quick ratio was 1.44; total debt was 4.913 billion yuan, including short-term debt of 1.798 billion yuan, and short-term debt as a proportion of total debt was 36.6%.

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

• The short-to-long debt ratio continues to grow. In the past three annual reports, the short-term debt/long-term debt ratio was 0.4, 0.41, and 0.52, respectively, showing a continuing upward trend.

• Large short-term debt leads to a shortage in existing funds. During the reporting period, broad money/cash amounted to 840 million yuan, short-term debt was 1.63 billion yuan, broad money/cash/short-term debt was 0.52, and broad money/cash was lower than short-term debt.

• Significant pressure from short-term debt and strain on the capital chain. During the reporting period, broad money/cash was 840 million yuan, short-term debt was 1.63 billion yuan, net cash flow from operating activities was 810 million yuan, and there is a gap between short-term debt, financial expenses, and money/cash and net cash flow from operating activities.

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

• Interest income/money/cash ratio is less than 1.5%. During the reporting period, money/cash was 830 million yuan, short-term debt was 1.63 billion yuan, and the average interest income/money/cash ratio for the company was 0.159%, which is below 1.5%.

• The ratio of total debt/total liabilities is greater than 20%, and the ratio of interest expense/net profit is greater than 30%. During the reporting period, the ratio of total debt/total liabilities was 79.04%, and the ratio of interest expense to net profit was 83.51%, meaning the impact of interest expense on the company’s operating performance is significant.

• The growth rate of prepayments exceeds the growth rate of operating costs. During the reporting period, prepayments increased by 3.52% versus the beginning of the period, operating costs同比 were down 6.27%, and the prepayments growth rate was higher than the operating costs growth rate.

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

• The pressure from short-term debt continues to rise, and financing channels are tightening. In the past three annual reports, the short-to-long-term debt ratio was 0.4x, 0.41x, and 0.52x, respectively, showing continued growth; and the net cash flow from financing activities was -1.1 billion yuan, -3.8 billion yuan, and -9.6 billion yuan, respectively, showing a continued decline.

IV. Operating Efficiency

During the reporting period, the company’s accounts receivable turnover was 1.12, down 5.78% year over year; inventory turnover was 10.42, down 22.3% year over year; and total asset turnover was 0.36, down 0.22% year over year.

From operating assets, it is important to focus on:

• Accounts receivable turnover continues to decline. In the past three annual reports, accounts receivable turnover was 1.56, 1.19, and 1.12, respectively, indicating weakening accounts receivable turnover capability.

• Inventory turnover continues to decline. In the past three annual reports, inventory turnover was 15.2, 13.41, and 10.42, respectively, indicating weakening inventory turnover capability.

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

• Total asset turnover continues to decline. In the past three annual reports, total asset turnover was 0.4, 0.36, and 0.36, respectively, indicating weakening total asset turnover capability.

Click Qingqing Group Hawk-Eye Early Warning to view the latest warning details and a visual preview of the financial report.

Sina Finance listed company financial report Hawk-Eye Early Warning introduction: the listed company financial report Hawk-Eye Early Warning is an intelligent professional analytical system for listed company financial reports. Hawk-Eye Early Warning aggregates a large number of authoritative financial experts, including accounting firms and listed companies, and tracks and interprets the latest financial reports of listed companies from multiple dimensions, such as company performance growth, earnings quality, capital pressure and safety, and operating efficiency. It also uses text and graphics to highlight potential financial risk points. It provides professional, efficient, and convenient technical solutions for identifying and issuing early warnings about financial risks in listed companies for financial institutions, listed companies, regulatory authorities, and more.

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Responsible editor: Xiao Lang Kuaibao