Eagle Eye Warning: Jinli Permanent Magnet's accounts receivable growth rate exceeds its revenue growth rate

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

On March 25, JINLIYONGCI released its 2025 annual report, with an audit opinion of standard unqualified audit opinion.

The report shows that the company’s total operating revenue for 2025 is 7.72B yuan, a year-on-year increase of 14.11%; net profit attributable to the parent company is 706 million yuan, a year-on-year increase of 142.44%; non-recurring net profit attributable to the parent is 620 million yuan, a year-on-year increase of 264%; basic earnings per share are 0.52 yuan per share.

Since listing in August 2018, the company has paid cash dividends 9 times, with a total cash dividend of 1.47B yuan.

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

1. Performance Quality Level

During the reporting period, the company’s revenue was 7.72B yuan, a year-on-year increase of 14.11%; net profit was 727 million yuan, a year-on-year increase of 147.12%; net cash flow from operating activities was 353 million yuan, down 30.5% year-on-year.

From the overall performance perspective, key points to monitor:

• Net profit is quite volatile. In the past three annual reports, net profits were 570 million yuan, 290 million yuan, and 730 million yuan, with year-on-year changes of -19.54%, -48.11%, and 147.12%, respectively, indicating significant fluctuation.

Considering operational asset quality, focus should be on:

• Growth rate of accounts receivable notes exceeds revenue growth. During the reporting period, accounts receivable notes increased by 807.6% from the beginning of the period, while revenue grew by 14.11%, indicating accounts receivable notes growth outpaces revenue.

• Growth rate of accounts receivable exceeds revenue growth. During the period, accounts receivable increased by 22.11% from the beginning, while revenue increased by 14.11%, showing accounts receivable growth outpaces revenue.

• The ratio of accounts receivable to revenue continues to grow. In the past three annual reports, the ratios are 29.61%, 29.91%, and 32.01%, showing a steady increase.

• Inventory growth exceeds cost of sales growth. During the reporting period, inventory increased by 27.5% from the beginning, while operating costs grew by 1.21%, indicating inventory growth outpaces cost increase.

• Inventory growth exceeds revenue growth. Inventory increased by 27.5% from the beginning, while revenue grew by 14.11%, showing inventory growth outpaces revenue.

From cash flow quality perspective, focus should be on:

• Divergence between revenue and net cash flow from operating activities. During the period, revenue increased by 14.11% year-on-year, while net cash flow from operating activities decreased by 30.5%, indicating a mismatch.

• Operating cash flow from operating activities continues to decline. In the past three annual reports, it was 1.52 billion yuan, 508 million yuan, and 353 million yuan, showing a continuous downward trend.

• The ratio of operating cash flow to net profit is below 1. During the period, this ratio was 0.486, indicating weaker profitability quality.

• The ratio of operating cash flow to net profit continues to decline. In the past three half-year reports, the ratios are 2.68, 1.73, and 0.49, showing a downward trend in profitability quality.

2. Profitability Level

During the reporting period, the company’s gross profit margin was 21.18%, a year-on-year increase of 90.3%; net profit margin was 9.42%, up 116.56% year-on-year; return on equity (weighted) was 9.58%, an increase of 128.64%.

From the company’s operational earnings perspective, key points to monitor:

• Gross profit margin is quite volatile. In the past three annual reports, gross margins were 16.07%, 11.13%, and 21.18%, with changes of -0.64%, -30.77%, and 90.3%, indicating abnormal fluctuations.

• Growth in gross profit margin accompanied by a decline in inventory turnover rate. During the period, gross margin increased from 11.13% to 21.18%, while inventory turnover decreased from 2.74 times to 2.46 times.

From customer concentration and minority shareholders perspectives, focus should be on:

• Major suppliers’ procurement share is high. During the period, the proportion of procurement from the top five suppliers was 80.08%, raising concerns about over-reliance on suppliers.

3. Capital Pressure and Safety

During the reporting period, the company’s asset-liability ratio was 49.87%, an increase of 18.39% year-on-year; current ratio was 1.8, quick ratio 1.34; total debt was 1.86B yuan, with short-term debt of 4.47 billion yuan, accounting for 77.61% of total debt.

Overall financial condition, key points to monitor:

• Asset-liability ratio continues to rise. In the past three annual reports, ratios were 40.49%, 42.12%, and 49.87%, showing an upward trend.

• Current ratio continues to decline, indicating weakening short-term debt-paying ability. Ratios are 2.22, 1.88, and 1.8.

From short-term capital pressure, focus on:

• Significant increase in short-term to long-term debt ratio. During the period, short-term debt/long-term debt rose sharply to 1.43.

• Cash ratio continues to decline. In the past three annual reports, ratios are 1.01, 0.98, and 0.67.

• Operating cash flow/net current liabilities ratio continues to decrease. In the past three reports, ratios are 0.38, 0.12, and 0.06, indicating weakening liquidity.

From capital management perspective, focus on:

• Large fluctuations in prepayment accounts. During the period, prepayment was 160 million yuan, with a change rate of 130.53% from the beginning.

• Prepayment/Current assets ratio continues to rise. In the past three annual reports, ratios are 0.75%, 0.91%, and 1.5%.

• Growth rate of prepayment exceeds cost of sales growth. During the period, prepayment increased by 130.53% from the beginning, while operating costs grew by 1.21%.

4. Operating Efficiency

During the reporting period, accounts receivable turnover was 3.44 times, up 1.67%; inventory turnover was 2.46 times, down 10.31%; total asset turnover was 0.56, down 0.35%.

From long-term assets perspective, focus should be on:

• Total asset turnover continues to decline. In the past three annual reports, ratios are 0.58, 0.56, and 0.56, indicating weakening efficiency.

• Revenue per unit of fixed assets declines year by year. In the past three reports, ratios are 3.91, 2.95, and 2.61.

From the perspective of the “Three Expenses” (selling, management, R&D), focus should be on:

• Sales expenses growth exceeds 20%. During the period, sales expenses were 58.61M yuan, up 21.63%.

• Sales expenses/revenue ratio continues to increase. In the past three reports, ratios are 0.52%, 0.87%, and 0.92%.

• Management expenses growth exceeds 20%. During the period, management expenses were 280 million yuan, up 64.05%.

• Management expenses growth exceeds revenue growth. During the period, management expenses increased by 64.05%, while revenue grew by 14.11%, indicating higher growth in management costs.

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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 performance growth, earnings quality, capital pressure and safety, and operational efficiency, providing visual prompts for 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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