Eagle Eye Warning: Xingnuowei's Accounts Receivable Growth Rate Exceeds Operating Revenue Growth Rate

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

On March 16, XinNuoWei 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 was 2.158 billion yuan, an increase of 8.93% year-on-year; net profit attributable to parent was -241 million yuan, down 548.8% year-on-year; non-recurring profit and loss attributable to parent was -294 million yuan, down 795.33% year-on-year; basic earnings per share were -0.1731 yuan/share.

Since its listing in March 2019, the company has paid cash dividends 6 times, totaling 651 million yuan.

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

1. Performance Quality

During the reporting period, the company’s revenue was 2.158 billion yuan, up 8.93% year-on-year; net profit was -609 million yuan, a decrease of 100.96%; net cash flow from operating activities was -196 million yuan, an increase of 84.16%.

Overall performance analysis highlights:

• Continuous decline in net profit attributable to parent. Over the past three annual reports, the year-on-year changes in net profit attributable to parent were 4.03%, -87.63%, -548.8%, showing a persistent downward trend.

• Continuous decline in non-recurring net profit attributable to parent. Over the past three annual reports, the YoY changes were 13.09%, -94.31%, -795.33%, showing a continued downward trend.

• Operating profit has been negative for three consecutive quarters. During the reporting period, the operating profits for the last three quarters were -27.73 million, -108 million, -284 million yuan, all negative.

• Divergence between operating income and net profit. During the reporting period, operating income increased by 8.93% YoY, while net profit decreased by 100.96%, showing a divergence in their movements.

• Net profit has been in loss for two consecutive years. Over the past three annual reports, net profits were 760 million yuan, -300 million yuan, -610 million yuan, with losses in the last two years.

From the perspective of revenue, cost, and period expenses ratio, key points include:

• Significant difference between changes in sales expenses and operating income. During the reporting period, operating income increased by 8.93% YoY, while sales expenses increased by 82.34%, indicating a large disparity.

• Divergence between operating income and taxes & surcharges. During the period, operating income increased by 8.93% YoY, while taxes and surcharges decreased by 0.18%, showing divergence.

Regarding operational asset quality:

• Accounts receivable growth exceeds operating income growth. During the period, accounts receivable increased by 40.51% from the beginning of the period, while operating income grew by 8.93%, indicating receivables are growing faster.

• Accounts receivable to operating income ratio continues to rise. Over the last three annual reports, the ratios were 15.68%, 15.86%, 20.45%, showing a steady increase.

• Inventory growth exceeds operating cost growth. During the period, inventory increased by 24.87% from the start, while operating costs grew by 15.69%, indicating inventory is growing faster.

• Inventory growth exceeds operating income growth. Inventory increased by 24.87%, while operating income grew by 8.93%, showing a faster inventory increase.

2. Profitability

During the reporting period, the company’s gross profit margin was 38.37%, down 8.58% YoY; net profit margin was -28.24%, down 84.48%; return on equity (weighted) was -6.96%, down 732.73%.

From the operational perspective:

• Continuous decline in gross profit margin. Over the last three annual reports, gross profit margins were 45.33%, 41.97%, 38.37%, showing a downward trend.

• Continuous decline in net profit margin. Over the last three annual reports, net profit margins were 30.19%, -15.31%, -28.24%, showing a downward trend.

From the asset side:

• The average return on equity (ROE) over the past three years has been below 7%. During the period, the weighted average ROE was -6.96%, with the last three fiscal years averaging below 7%.

• ROE continues to decline. The last three annual reports show ROEs of 16.23%, 1.1%, -6.96%, with a downward trend.

• Return on invested capital (ROIC) is below 7%. During the period, the company’s ROIC was -6.33%, with an average over three periods below 7%.

3. Capital Pressure and Safety

During the period, the company’s asset-liability ratio was 55.46%, an increase of 118.85% year-on-year; current ratio was 1.05, quick ratio 0.87; total debt was 105 million yuan, all short-term debt.

Overall financial status:

• Significant increase in asset-liability ratio. The ratio increased by 118.85% from the beginning of the period, reaching 55.46%.

• Current ratio continues to decline. Over the last three periods, ratios were 2.43, 1.95, 1.05, indicating weakening short-term solvency.

Long-term capital pressure:

• Total debt to net assets ratio continues to rise. Over the last three reports, ratios were 0.01%, 0.02%, 19.11%, showing a steady increase.

• Cash coverage ratio of total debt is decreasing. Over the last three periods, the broad monetary funds to total debt ratios were 4795.18, 2267.45, 3.12, showing a significant decline.

From cash management perspective:

• Interest income to monetary funds ratio below 1.5%. During the period, monetary funds were 770 million yuan, short-term debt 3.993 million yuan, with an average interest income/monetary funds ratio of 1.345%, below 1.5%.

• Large fluctuation in prepayment accounts. During the period, prepayments were 70 million yuan, a change of 118.14% from the beginning.

• Prepayment to current assets ratio continues to grow. Over the last three reports, ratios were 0.81%, 1.19%, 2.55%.

• Prepayment growth exceeds operating cost growth. During the period, prepayments increased by 118.14% from the start, while operating costs grew by 15.69%.

• Significant change in other payables. During the period, other payables were 1.91 billion yuan, a 96.72% increase from the beginning.

From capital coordination perspective:

• Capital is relatively abundant. During the period, the company’s operating capital demand was -1 billion yuan, working capital was 140 million yuan, and cash payment capacity was 1.14 billion yuan, indicating sufficient liquidity but warrants further attention on efficiency.

4. Operating Efficiency

During the period, accounts receivable turnover was 5.71 times, up 1.87%; inventory turnover was 2.97 times, down 19.54%; total asset turnover was 0.35 times, up 19.52%.

Asset management focus:

• Inventory turnover rate continues to decline. Over the last three reports, rates were 5.91, 3.69, 2.97, indicating weakening inventory efficiency.

• Inventory to total assets ratio continues to increase. Ratios over the last three reports were 3.01%, 6.62%, 7.93%.

Long-term asset focus:

• Significant fluctuation in other non-current assets. During the period, other non-current assets were 1 billion yuan, a 158.86% increase from the beginning.

From the perspective of three expenses:

• Sales expenses increased by over 20%. During the period, sales expenses were 280 million yuan, up 82.34%.

Click on XinNuoWei Eagle Eye Warning to view the latest warning details and visualized financial report preview.

Sina Finance Listed Company Financial Report Eagle Eye Warning Introduction: The Eagle Eye Warning system is an intelligent professional analysis platform 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 alerts 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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