Eagle Eye Warning: Tianyue's Accounts Receivable to Operating Income Ratio Continues to Increase

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

On March 28, Tianyue Advanced released its 2025 annual report. The audit opinion was a standard unqualified audit opinion (standard with no reservations).

The report shows that the company’s operating revenue for the full year of 2025 was RMB 1.465 billion, down 17.15% year over year; net profit attributable to shareholders was RMB -208 million, down 216.36% year over year; net profit after deducting non-recurring items attributable to shareholders was RMB -246 million, down 257.53% year over year; and basic earnings per share was RMB -0.47 per share.

Since the company’s IPO in December 2021, it has made 0 cash dividends, with cumulative cash dividends implemented totaling RMB 0.

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

I. Performance Quality

During the reporting period, the company’s operating revenue was RMB 1.465 billion, down 17.15% year over year; net profit attributable to shareholders was RMB -209 million, down 216.5% year over year; and net cash flow from operating activities was RMB 231 million, up 249.79% year over year.

From an overall performance perspective, the key items to pay close attention to are:

• The growth rate of operating revenue has been continuously declining. In the annual reports over the past three periods, the year-over-year changes in operating revenue were 199.9%, 41.37%, and -17.15%, respectively, with the downward trend continuing.

• Net profit attributable to shareholders has fallen sharply. During the reporting period, net profit attributable to shareholders was RMB -2.1 billion, down sharply 216.36% year over year.

| Item | 20231231 | 20241231 | 20251231 | | Net profit attributable to shareholders (RMB) | -RMB 45.7205 million | RMB 179 million | -RMB 208 million | | Net profit attributable to shareholders growth rate | 73.98% | 491.56% | -216.36% |

• Net profit after deducting non-recurring items attributable to shareholders has fallen sharply. During the reporting period, net profit after deducting non-recurring items attributable to shareholders was RMB -246 million, down sharply 257.53% year over year.

| Item | 20231231 | 20241231 | 20251231 | | Non-recurring net profit attributable to shareholders (RMB) | -RMB 113 million | RMB 156 million | -RMB 246 million | | Non-recurring net profit attributable to shareholders growth rate | 56.35% | 238.48% | -257.53% |

• Net profit is relatively volatile. In the annual reports over the past three periods, net profit was RMB -0.5 billion, RMB 1.8 billion, and RMB -2.1 billion, respectively; the year-over-year changes were 73.98%, 491.56%, and -216.5%, respectively, indicating that net profit is relatively volatile.

| Item | 20231231 | 20241231 | 20251231 | | Net profit (RMB) | -RMB 45.7205 million | RMB 179 million | -RMB 209 million | | Net profit growth rate | 73.98% | 491.56% | -216.5% |

From the income, cost, and period-expense mix, the key items to pay close attention to are:

• The variation in selling expenses differs greatly from the variation in operating revenue. During the reporting period, operating revenue changed by -17.15% year over year, while selling expenses changed by 7.75% year over year; the difference between selling expenses and operating revenue changes is significant.

• Operating revenue and taxes and surcharges move in opposite directions. During the reporting period, operating revenue changed by -17.15% year over year, while taxes and surcharges changed by 12.82% year over year; operating revenue and taxes and surcharges move in opposite directions.

Based on the quality of operating assets, the key items to pay close attention to are:

• The ratio of accounts receivable to operating revenue continues to rise. In the annual reports over the past three periods, the ratio of accounts receivable to operating revenue was 24.69%, 29.42%, and 36.83%, respectively, showing continuous growth.

Based on the quality of cash flows, the key items to pay close attention to are:

• Operating revenue and net cash flow from operating activities diverge. During the reporting period, operating revenue decreased by 17.15% year over year, while net cash flow from operating activities increased by 249.79% year over year; operating revenue and net cash flow from operating activities move in opposite directions.

II. Profitability

During the reporting period, the company’s gross margin was 13.05%, down 49.59% year over year; net profit margin was -14.24%, down 240.62% year over year; and return on net assets (weighted) was -3.54%, down 205.04% year over year.

Combining the results from the company’s operations, the key items to pay close attention to are:

• Selling gross margin fell sharply. During the reporting period, the selling gross margin was 13.05%, down sharply 49.59% year over year.

• Selling gross margin is relatively volatile. In the annual reports over the past three periods, the selling gross margin was 15.81%, 25.9%, and 13.05%, respectively; the year-over-year changes were 374.83%, 63.76%, and -49.59%, respectively, indicating abnormal volatility in selling gross margin.

• Selling net profit margin fell sharply. During the reporting period, the selling net profit margin was -14.24%, down sharply 240.62% year over year.

| Item | 20231231 | 20241231 | 20251231 | | Selling net profit margin | -3.66% | 10.13% | -14.24% | | Selling net profit margin growth rate | 91.32% | 376.97% | -240.62% |

Based on the company’s asset side, the key items to pay close attention to are:

• Return on net assets declined significantly. During the reporting period, the weighted average return on net assets was -3.54%, down sharply 205.05% year over year.

| Item | 20231231 | 20241231 | 20251231 | | Return on net assets | -0.87% | 3.37% | -3.54% | | Return on net assets growth rate | 74.86% | 487.36% | -205.05% |

• Over the past three years, the average return on net assets has been below 7%. During the reporting period, the weighted average return on net assets was -3.54%, and over the most recent three accounting years, the average weighted average return on net assets has been below 7%.

| Item | 20231231 | 20241231 | 20251231 | | Return on net assets | -0.87% | 3.37% | -3.54% | | Return on net assets growth rate | 74.86% | 487.36% | -205.05% |

• Return on invested capital is below 7%. During the reporting period, the company’s return on invested capital was -2.53%; the average value over the three reporting periods was below 7%.

| Item | 20231231 | 20241231 | 20251231 | | Return on invested capital | -0.84% | 3.33% | -2.53% |

III. Funding Pressure and Safety

During the reporting period, the company’s asset-liability ratio was 25.13%, down 9.55% year over year; the current ratio was 3.44, and the quick ratio was 2.75; total debt was RMB 1.35 billion, of which short-term debt was RMB 1.004 billion, and short-term debt as a proportion of total debt was 74.42%.

From the perspective of long-term funding pressure, the key items to pay close attention to are:

• The ratio of total debt to net assets continues to rise. In the annual reports over the past three periods, the ratio of total debt to net assets was 7.08%, 13.17%, and 14.8%, respectively, showing continuous growth.

From the perspective of capital management and control, the key items to pay close attention to are:

• Cash and cash equivalents and interest-bearing liabilities have continued to grow at high rates for three consecutive years. In the annual reports over the past three periods, cash and cash equivalents increased by 50.36%, 20.34%, and 156.48% compared with the beginning of the period, respectively; total debt increased by 52431.65%, 89.14%, and 51.84% compared with the beginning of the period, respectively; within the three reporting periods, high growth rates have been maintained continuously.

• The ratio of cash and cash equivalents to total assets continues to rise, and the ratio of total debt to total liabilities also continues to rise. In the annual reports over the past three periods, the ratio of cash and cash equivalents to total assets was 14.9%, 16.84%, and 33.17%, respectively; the ratio of total debt to total liabilities was 21.95%, 34.23%, and 44.11%, respectively. Both show an upward trend—stay alert to the “high deposits and high lending” trend.

• Prepayments vary significantly. During the reporting period, prepayments were RMB 120 million, with a change rate of 210.37% versus the beginning of the period.

• The growth rate of prepayments is higher than the growth rate of operating costs. During the reporting period, prepayments increased by 210.37% compared with the beginning of the period; operating costs grew by -2.79% year over year. The growth rate of prepayments is higher than the growth rate of operating costs.

| Item | 20231231 | 20241231 | 20251231 | | Prepayments growth rate vs. beginning of period | 144.46% | -72.79% | 210.37% | | Operating cost growth rate | 138.74% | 24.44% | -2.79% |

• Accounts payable notes vary significantly. During the reporting period, accounts payable notes were RMB 300 million, with a change rate of 94.59% versus the beginning of the period.

From the perspective of funding coordination, the key items to pay close attention to are:

• Capital expenditures continuously exceed net cash inflow from operating activities. In the annual reports over the past three periods, cash paid for the purchase/construction of fixed assets, intangible assets, and other long-term assets was RMB 1.4 billion, RMB 570 million, and RMB 400 million, respectively. The company’s net cash flow from operating activities was RMB 10 million, RMB 70 million, and RMB 230 million, respectively.

IV. Operating Efficiency

During the reporting period, the company’s accounts receivable turnover was 2.76, down 35.19% year over year; inventory turnover was 1.22, down 13.06% year over year; and total asset turnover was 0.17, down 30.22% year over year.

From operating assets, the key items to pay close attention to are:

• Accounts receivable turnover continues to decline. In the annual reports over the past three periods, accounts receivable turnover was 5.6, 4.27, and 2.76, respectively, indicating weakening accounts receivable turnover capability.

• Inventory turnover continues to decline. In the annual reports over the past three periods, inventory turnover was 1.53, 1.4, and 1.22, respectively, indicating weakening inventory turnover capability.

From long-term assets, the key items to pay close attention to are:

• Construction in progress changes significantly. During the reporting period, construction in progress was RMB 130 million, up 36.92% compared with the beginning of the period.

Click on Tianyue Advanced’s Hawk-Eye Early Warning to view the latest 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 a professional intelligent analysis system for listed company financial reports. By gathering a large number of authoritative financial experts such as accounting firms and listed companies, the hawk-eye early warning tracks and interprets the latest financial reports of listed companies across multiple dimensions, including company performance growth, earnings quality, funding pressure and safety, and operating efficiency, and highlights possible financial risk points in graphic and text form. It provides professional, efficient, and convenient technical solution support for identifying and issuing early warnings on financial risks for financial institutions, listed companies, regulatory authorities, and others.

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