Eagle Eye Warning: Shuanghui Development's Operating Revenue Declines

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

On March 24, Shuanghui Development released its 2025 annual report.

The report shows that the company’s total operating revenue for 2025 was 59.274 billion yuan, down 0.48% year over year; net profit attributable to the parent was 5.105 billion yuan, up 2.32% year over year; net profit after deducting non-recurring items attributable to the parent was 4.939 billion yuan, up 2.63% year over year; basic earnings per share were 1.4733 yuan per share.

Since it went public in December 1998, the company has made cash dividends 32 times, with cumulative implemented cash dividends totaling 64.495 billion yuan.

The listed-company financial report Hawk-Eye early warning system conducts intelligent quantitative analysis of Shuanghui Development’s 2025 annual report across four major dimensions: performance quality, profitability, capital pressure and security, and operating efficiency.

I. Performance Quality

In the reporting period, the company’s revenue was 59.274 billion yuan, down 0.48% year over year; net profit was 5.16 billion yuan, up 2.08% year over year; net cash flow from operating activities was 7.352 billion yuan, down 12.63% year over year.

From the overall performance perspective, key items to focus on:

• Operating revenue declined. In the reporting period, operating revenue was 59.27 billion yuan, down 0.48% year over year.

• Operating revenue and net profit moved in opposite directions. In the reporting period, operating revenue fell 0.48% year over year, while net profit rose 2.08% year over year; operating revenue and net profit diverged in their changes.

From the matching of income, costs, and period expenses, key items to focus on:

• Divergence between operating revenue and taxes and surcharges. In the reporting period, operating revenue changed -0.48% year over year, taxes and surcharges changed 3.5% year over year; operating revenue and taxes and surcharges diverged in their changes.

Combining operating asset quality, key items to focus on:

• Accounts receivable / operating revenue ratio continues to rise. In the past three annual reports, the accounts receivable / operating revenue ratio was 0.36%, 0.46%, and 0.77%, respectively, showing continuous growth.

II. Profitability

In the reporting period, the company’s gross margin was 18.05%, up 2.04% year over year; net profit margin was 8.71%, up 2.58% year over year; return on equity (weighted) was 24.1%, up 1.22% year over year.

From the perspective of company operations driving earnings, key items to focus on:

• Sales gross margin continues to increase, while accounts receivable turnover continues to decline. In the past three annual reports, sales gross margin was 17.05%, 17.69%, and 18.05%, showing continuous growth; accounts receivable turnover was 298.27 times, 242.69 times, and 163 times, showing continuous decline.

III. Capital Pressure and Security

In the reporting period, the company’s asset-liability ratio was 45.32%, up 5.88% year over year; the current ratio was 1.15 and the quick ratio was 0.83; total debt was 10.212 billion yuan, of which short-term debt was 10.202 billion yuan, and the ratio of short-term debt to total debt was 99.9%.

From the overall financial position, key items to focus on:

• Asset-liability ratio continues to grow. In the past three annual reports, the asset-liability ratio was 42.34%, 42.8%, and 45.32%, respectively, with an upward trend.

From short-term capital pressure, key items to focus on:

• The ratio of short-term to long-term debt continues to rise. In the past three annual reports, the ratio of short-term debt to long-term debt was 6.29, 7.13, and 48.3, respectively, with an upward trend.

• The cash ratio continues to decline. In the past three annual reports, the cash ratio was 0.38, 0.36, and 0.31, respectively, showing continuous decline.

From long-term capital pressure, key items to focus on:

• The ratio of total debt to net assets continues to rise. In the past three annual reports, the ratio of total debt to net assets was 33.15%, 38.54%, and 48.49%, respectively, showing continuous growth.

From the perspective of capital management and control, key items to focus on:

• The ratio of interest income / cash is less than 1.5%. In the reporting period, cash and cash equivalents were 4.97 billion yuan, short-term debt was 10.24 billion yuan; the company’s average ratio of interest income / cash was 1.343%, below 1.5%.

• Prepayments have a relatively large change. In the reporting period, prepayments were 390 million yuan, with a period-beginning change rate of 157.93%.

• The ratio of prepayments / current assets continues to grow. In the past three annual reports, the ratio of prepayments / current assets was 0.55%, 0.84%, and 1.93%, respectively, showing continuous growth.

• The growth rate of prepayments is higher than the growth rate of operating costs. In the reporting period, prepayments increased 157.93% compared with the beginning of the period, while operating costs grew -0.92% year over year; the prepayments growth rate is higher than the operating costs growth rate.

• Other receivables have a relatively large change. In the reporting period, other receivables were 110 million yuan, with a period-beginning change rate of 55.18%.

• The ratio of other receivables / current assets continues to grow. In the past three annual reports, the ratio of other receivables / current assets was 0.11%, 0.41%, and 0.58%, respectively, showing continuous increase.

• Accounts payable notes have a relatively large change. In the reporting period, accounts payable notes were 70 million yuan, with a period-beginning change rate of 67801.93%.

From the perspective of capital coordination, key items to focus on:

• Capital can be coordinated, but there are payment difficulties. In the reporting period, working capital was 2.58 billion yuan; the company’s working capital needs were 7.08 billion yuan. The working capital brought by investing and financing activities cannot fully cover the company’s funding needs for operating activities; the company’s cash payment capacity was -4.49 billion yuan.

IV. Operating Efficiency

In the reporting period, the company’s accounts receivable turnover was 163, down 32.83% year over year; inventory turnover was 7.79, up 20.68% year over year; total asset turnover was 1.55, down 4.02% year over year.

From operating assets, key items to focus on:

• Accounts receivable turnover continues to decline. In the past three annual reports, accounts receivable turnover was 298.27, 242.69, and 163; accounts receivable turnover capability is weakening.

• Notes receivable continue to grow. In the past three annual reports, the ratio of notes receivable / current assets was 0.06%, 0.07%, and 0.13%, respectively, showing continuous growth. The ratio of other cash received related to operating activities / notes receivable was 8392.94%, 8345.57%, and 2457.67%, respectively, showing continuous decline.

• The proportion of accounts receivable to total assets continues to grow. In the past three annual reports, accounts receivable / total assets was 0.59%, 0.73%, and 1.15%, respectively, showing continuous growth.

From long-term assets, key items to focus on:

• Total asset turnover continues to decline. In the past three annual reports, total asset turnover was 1.64, 1.61, and 1.55, respectively; total asset turnover capability is weakening.

• Other non-current assets have a relatively large change. In the reporting period, other non-current assets were 920 million yuan, up 9616.14% compared with the beginning of the period.

From the “three expenses” perspective (selling, administrative, and finance expenses), key items to focus on:

• The ratio of selling expenses / operating revenue continues to grow. In the past three annual reports, the ratio of selling expenses / operating revenue was 3.2%, 3.23%, and 3.61%, respectively, showing continuous growth.

Click Shuanghui Development’s Hawk-Eye early warning to view the latest warning details and a visual preview of the financial report.

Introduction to Sina Finance Listed Company Financial Report Hawk-Eye Early Warning: The listed company financial report Hawk-Eye early warning is a professional intelligent analytical system for listed company financial reports. Hawk-Eye early warning tracks and interprets the latest financial reports of listed companies across multiple dimensions, such as company performance growth, earnings quality, capital pressure and security, and operating efficiency, by gathering a large number of authoritative financial experts from accounting firms and listed companies, and alerts users to potential financial risk points in a graphical and textual format. It provides financial institutions, listed companies, regulatory bodies, and others with professional, efficient, and convenient technical solutions for identifying and early-warning financial risks for listed companies.

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