Eagle Eye Warning: China Evergrande Group's Operating Revenue Significantly Declines

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

On April 4, Gede Group released its 2025 annual report, with the audit opinion being a standard unqualified (unmodified) audit opinion.

The report shows that the company’s operating revenue for 2025 was RMB 35.795 billion, a year-on-year decrease of 52.44%; net profit attributable to shareholders was -RMB 13.281 billion, a year-on-year decrease of 117.19%; net profit after excluding non-recurring items attributable to shareholders was -RMB 12.307 billion, a year-on-year decrease of 180.53%; and basic earnings per share were -2.94 yuan/share.

Since listing in April 2001, the company has made cash dividends 23 times, with cumulative cash dividends implemented totaling RMB 23.149 billion.

The listed company financial report hawk-eye early warning system conducts intelligent quantitative analysis of Gede 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 RMB 35.795 billion, a year-on-year decrease of 52.44%; net profit was -RMB 15.523 billion, a year-on-year decrease of 98.51%; and net cash flow from operating activities was RMB 16.0775 million, a year-on-year decrease of 99.88%.

From the overall performance perspective, it is necessary to pay close attention to：

• Operating revenue fell sharply. During the reporting period, operating revenue was RMB 35.79 billion, a year-on-year decrease of 52.45%.

• Net profit attributable to shareholders fell sharply. During the reporting period, net profit attributable to shareholders was -RMB 13.28 billion, a year-on-year decrease of 117.19%.

| Item | 20231231 | 20241231 | 20251231 | | Net profit attributable to shareholders (RMB) | 0.888 billion | -6.115 billion | -13.281 billion | | Net profit attributable to shareholders growth rate | -85.48% | -788.54% | -117.19% |

• Net profit attributable to shareholders after excluding non-recurring items fell sharply. During the reporting period, net profit attributable to shareholders after excluding non-recurring items was -RMB 12.31 billion, a year-on-year decrease of 180.53%.

| Item | 20231231 | 20241231 | 20251231 | | Non-recurring items profit attributable to shareholders (RMB) | -1.099 billion | -4.387 billion | -12.307 billion | | Non-recurring items profit attributable to shareholders growth rate | -119.27% | -299.17% | -180.53% |

• Operating profit was negative for three consecutive quarters. During the reporting period, operating profit for the past three quarters was -RMB 3.15 billion, -RMB 0.8 billion, and -RMB 9.57 billion, all negative.

| Item | 20250630 | 20250930 | 20251231 | | Operating profit (RMB) | -31.46 billion | -8.01 billion | -95.74 billion |

• Net profit has been loss-making for two consecutive years. In the past three annual reports, net profit was RMB 3.2 billion, -RMB 7.82 billion, and -RMB 15.52 billion, resulting in losses for two consecutive years.

| Item | 20231231 | 20241231 | 20251231 | | Net profit (RMB) | 3.195 billion | -7.82 billion | -15.523 billion |

Based on the quality of operating assets, it is necessary to pay close attention to：

• The accounts receivable-to-operating revenue ratio continues to rise. In the past three annual reports, the accounts receivable-to-operating revenue ratio was 1.66%, 2.52%, and 4.78%, respectively, showing sustained growth.

II. Profitability

During the reporting period, the company’s gross margin was 13.06%, down 12.6% year-on-year; net profit margin was -43.37%, down 317.43% year-on-year; and return on net assets (weighted) was -25.37%, down 157.3% year-on-year.

Based on the company’s operating side and returns, it is necessary to pay close attention to：

• Sales gross margin continues to decline. In the past three annual reports, sales gross margin was 17.41%, 14.95%, and 13.06%, respectively, with a persistently downward trend.

• Sales net profit margin continues to decline. In the past three annual reports, sales net profit margin was 3.26%, -10.39%, and -43.37%, respectively, with a persistently downward trend.

| Item | 20231231 | 20241231 | 20251231 | | Sales net profit margin | 3.26% | -10.39% | -43.37% | | Sales net profit margin growth rate | -57.39% | -418.67% | -317.43% |

Based on the company’s asset side and returns, it is necessary to pay close attention to：

• The average return on net assets over the past three years is below 7%. During the reporting period, the weighted average return on net assets was -25.37%, and the weighted average return on net assets across the most recent three fiscal years has averaged below 7%.

| Item | 20231231 | 20241231 | 20251231 | | Return on net assets | 1.36% | -9.86% | -25.37% | | Return on net assets growth rate | -85.79% | -825% | -157.3% |

• Return on net assets continues to decline. In the past three annual reports, the weighted average return on net assets was 1.36%, -9.86%, and -25.37%, respectively, showing a continuous downward trend.

| Item | 20231231 | 20241231 | 20251231 | | Return on net assets | 1.36% | -9.86% | -25.37% | | Return on net assets growth rate | -85.79% | -825% | -157.3% |

• Return on invested capital is below 7%. During the reporting period, the company’s return on invested capital was -8.8%, and the average across the three reporting periods was below 7%.

| Item | 20231231 | 20241231 | 20251231 | | Return on invested capital | 0.52% | -2.27% | -8.8% |

III. Capital pressure and safety

During the reporting period, the company’s asset-liability ratio was 64.25%, down 0.83% year-on-year; the current ratio was 1.39, and the quick ratio was 0.84; total debt was RMB 67.223 billion, of which short-term debt was RMB 31.063 billion, and short-term debt as a proportion of total debt was 46.21%.

From short-term capital pressure, it is necessary to pay close attention to：

• Large short-term debt and a deficit in existing funds. During the reporting period, broad money and funds were RMB 18.79 billion, short-term debt was RMB 31.06 billion, broad money and funds/short-term debt was 0.6, and broad money and funds were lower than short-term debt.

• Short-term debt pressure is higher, and the funding chain is under strain. During the reporting period, broad money and funds were RMB 18.79 billion, short-term debt was RMB 31.06 billion, net cash flow from operating activities was RMB 0.2 billion, and there is a difference among short-term debt, financial expenses, money and funds, and net cash flow from operating activities.

• The cash ratio is less than 0.25. During the reporting period, the cash ratio was 0.12, which is lower than 0.25.

From long-term capital pressure, it is necessary to pay close attention to：

• The cash coverage ratio of total debt is gradually getting smaller. In the past three annual reports, the ratio of broad money and funds to total debt was 0.43, 0.41, and 0.28, respectively, showing a continuous decline.

From the perspective of capital management, it is necessary to pay close attention to：

• Interest income/money and funds is less than 1.5%. During the reporting period, money and funds were RMB 12.67 billion, short-term debt was RMB 31.06 billion, and the company’s average interest income/money and funds ratio was 1.072%, which is below 1.5%.

• The growth rate of advance payments exceeds the growth rate of operating costs. During the reporting period, advance payments compared with the beginning of the period grew -43.33%, operating costs year-on-year grew -51.39%, and the growth rate of advance payments was higher than that of operating costs.

| Item | 20231231 | 20241231 | 20251231 | | Advance payments versus beginning of period growth rate | -5.55% | -20.77% | -43.33% | | Operating cost growth rate | -15.01% | -20.91% | -51.39% |

IV. Operating efficiency

During the reporting period, the company’s accounts receivable turnover ratio was 19.85, down 53.53% year-on-year; inventory turnover ratio was 0.43, down 26.38% year-on-year; and total asset turnover ratio was 0.14, down 39.71% year-on-year.

From operating assets, it is necessary to pay close attention to：

• Accounts receivable turnover continues to decline. In the past three annual reports, accounts receivable turnover ratios were 61.88, 42.72, and 19.85, respectively, indicating weakening accounts receivable turnover ability.

• Inventory turnover has dropped significantly. During the reporting period, inventory turnover was 0.43, down 26.38% year-on-year.

• The proportion of accounts receivable to total assets continues to rise. In the past three annual reports, the ratio of accounts receivable to total assets was 0.44%, 0.64%, and 0.73%, respectively, showing sustained growth.

From long-term assets, it is necessary to pay close attention to：

• Total asset turnover continues to decline. In the past three annual reports, total asset turnover ratios were 0.25, 0.23, and 0.14, respectively, indicating weakening total asset turnover ability.

• Intangible assets have changed significantly. During the reporting period, intangible assets were RMB 40 million, up 145.51% from the beginning of the period.

Click the Gede Group hawk-eye early warning to view the latest warning details and a visual preview of financial reports.

Sina Finance Listed Company Financial Report Hawk-Eye Early Warning introduction: The listed company financial report hawk-eye early warning is an intelligent, specialized analytical system for financial reports. By aggregating a large number of authoritative finance experts from accounting firms and listed companies, the 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 safety, and operating efficiency, and presents potential financial risk points in the form of text and charts. It provides technology solutions for professional, efficient, and convenient identification and early warning of financial risks of listed companies for financial institutions, listed companies, regulatory authorities, and others.

Hawk-Eye Early Warning entry: Sina Finance APP-Quotes-Data Center-Hawk-Eye Early Warning or Sina Finance APP-Stock quote page-Financials-Hawk-Eye Early Warning

Statement: The market is risky; invest with caution. This article is automatically published based on third-party databases and does not represent Sina Finance’s viewpoint. Any information appearing in this article is for reference only and does not constitute personal investment advice. If there are any discrepancies, please refer to the actual announcements. If you have any questions, please contact biz@staff.sina.com.cn.

Massive information, precise analysis—right on the Sina Finance APP

Editor-in-charge: Xiao Lang Kuai Bao