Hawk's Eye Warning: CATL's Accounts Receivable to Revenue Ratio Continues to Rise

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

On March 10, CATL 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 423.702 billion yuan, a year-on-year increase of 17.04%; net profit attributable to shareholders was 72.201 billion yuan, up 42.28% year-on-year; net profit after non-recurring gains and losses was 64.508 billion yuan, up 43.37%; basic earnings per share were 16.14 yuan per share.

Since its listing in May 2018, the company has paid cash dividends 10 times, totaling 61.105 billion yuan. The announcement states that the company plans to distribute a cash dividend of 21.78 yuan (tax included) for every 10 shares to all shareholders.

The Listed Company Financial Report Eagle Eye Warning System conducts intelligent quantitative analysis of CATL’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 423.702 billion yuan, a 17.04% increase; net profit was 76.786 billion yuan, up 42.18%; net cash flow from operating activities was 133.22 billion yuan, up 37.35%.

Regarding operational asset quality, key points include:

• Growth rate of accounts receivable notes exceeds revenue growth. During the period, accounts receivable notes increased by 958.27% from the beginning of the period, while revenue grew by 17.04%, indicating a higher growth rate for receivable notes.

• The ratio of accounts receivable to revenue continues to grow. In the past three annual reports, the ratios were 15.97%, 17.72%, and 18.03%, respectively, showing a steady increase.

• Inventory growth exceeds cost of sales growth. During the period, inventory increased by 57.98% from the beginning of the period, while operating costs grew by 14.21%, indicating inventory growth outpacing costs.

• Inventory growth exceeds revenue growth. Inventory increased by 57.98% from the beginning of the period, while revenue grew by 17.04%, indicating inventory growth outpacing revenue.

Regarding cash flow quality, key points include:

• The ratio of net cash flow from operating activities to net profit continues to decline. In the past three half-year reports, this ratio was 1.99, 1.8, and 1.73, respectively, showing a downward trend and declining profitability quality.

2. Profitability

During the reporting period, the company’s gross profit margin was 26.27%, an increase of 7.48%; net profit margin was 18.12%, up 21.48%; return on equity (weighted) was 24.91%, up 3.23%.

3. Capital Pressure and Safety

During the period, the company’s asset-liability ratio was 61.94%, down 5.06% year-on-year; current ratio was 1.6, quick ratio was 1.36; total debt was 220.128 billion yuan, with short-term debt at 138.45 billion yuan, accounting for 62.9% of total debt.

Regarding short-term capital pressure, key points include:

• Cash ratio continues to decline. In the past three annual reports, the cash ratio was 1.37, 1.24, and 0.99, respectively.

From capital management perspective, key points include:

• Significant changes in prepayments. During the period, prepayments were 14.28 billion yuan, a change rate of 139.25% from the beginning of the period.

• Prepayment growth exceeds cost of sales growth. During the period, prepayments increased by 139.25% from the beginning, while operating costs grew by 14.21%.

• Changes in notes payable are significant. During the period, notes payable amounted to 103.28 billion yuan, a 53.33% change from the beginning.

From capital coordination perspective, key points include:

• Capital is relatively abundant. During the period, the company’s working capital demand was -39.95 billion yuan, working capital was 238.86 billion yuan, and cash payment capacity was 278.81 billion yuan. The efficiency of capital use warrants further attention.

4. Operating Efficiency

During the period, accounts receivable turnover was 6.03, up 6.73%; inventory turnover was 4.05, down 22.11%; total asset turnover was 0.48, down 0.08%.

Regarding operational assets, key points include:

• Significant decline in inventory turnover. During the period, inventory turnover was 4.05, a sharp decrease of 22.11%.

• The ratio of inventory to total assets continues to increase. In the past three annual reports, the ratios were 6.34%, 7.61%, and 9.7%, respectively.

• Long-term assets analysis:

• Total asset turnover rate continues to decline. In the past three reports, it was 0.61, 0.48, and 0.48, indicating weakening efficiency.

• Fixed assets fluctuate significantly. During the period, fixed assets were 146.4 billion yuan, a 30.03% increase from the beginning.

• Per-unit fixed asset output value declines annually. In the past three reports, revenue per fixed asset ratio was 3.47, 3.22, and 2.89, respectively.

From the three expenses perspective, key points include:

• Management expenses growth exceeds 20%. During the period, management expenses were 11.67 billion yuan, up 20.4%.

• Management expenses growth exceeds revenue growth. During the period, management expenses increased by 20.4%, while revenue grew by 17.04%, indicating higher expense growth relative to revenue.

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Sina Finance Listed Company Financial Report Eagle Eye Warning Introduction: The Eagle Eye Warning 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 alerts of potential financial risks. It offers professional, efficient, and convenient technical solutions for financial institutions, listed companies, and regulatory authorities to identify and warn of financial risks.

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