Eagle Eye Warning: Junshi Biosciences' Operating Activities Net Cash Flow Continues to Be Negative

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

On March 13, Junshi Biosciences released its 2025 annual report.

The report shows that the company’s total operating revenue for 2025 was 2.498 billion yuan, a year-on-year increase of 28.23%; net profit attributable to shareholders was -875 million yuan, a year-on-year increase of 31.68%; non-recurring net profit attributable to shareholders was -990 million yuan, up 23.28%; basic earnings per share were -0.87 yuan/share.

Since its listing in June 2020, the company has not paid any cash dividends, with a total cash dividend of 0 yuan.

The Listed Company Financial Report Eagle Eye Warning System performs intelligent quantitative analysis of Junshi Biosciences’ 2025 annual report from four dimensions: performance quality, profitability, funding pressure and safety, and operational efficiency.

1. Performance Quality

During the reporting period, the company’s revenue was 2.498 billion yuan, up 28.23% year-on-year; net profit was -1.009 billion yuan, up 26.86%; net cash flow from operating activities was -520 million yuan, up 63.76%.

Overall performance analysis indicates the following key points:

• Revenue growth rate has been continuously declining over the past three quarters. During the reporting period, revenue increased by 2.28% year-on-year, with a steady decline in growth rate over the last three quarters.

• Operating profit has been negative for three consecutive quarters. During the reporting period, operating profits for the last three quarters were -190 million yuan, -200 million yuan, -330 million yuan, all negative.

From the perspective of revenue, cost, and period expenses ratio, the following points require attention:

• Significant difference between changes in sales expenses and revenue. During the reporting period, revenue increased by 28.24% year-on-year, while sales expenses increased by 6.95%, indicating a large disparity.

Regarding cash flow quality, the following points are noteworthy:

• Net cash flow from operating activities remains negative. During the period, it was -520 million yuan, negative for three consecutive years.

2. Profitability

During the reporting period, the company’s gross profit margin was 81.33%, up 3.05% year-on-year; net profit margin was -40.4%, up 42.97%; return on equity (weighted) was -14.71%, up 25.37%.

From the asset side, the following points require attention:

• The average return on net assets over the past three years has been below 7%. During the period, the weighted average return on net assets was -14.71%, with an average below 7% over the last three fiscal years.

• Return on invested capital is below 7%. During the period, the company’s return on invested capital was -8.44%, with an average below 7% over the three periods.

From the perspectives of customer concentration and minority shareholders, the following points are important:

• Revenue contribution from the top five customers is significant. During the period, sales from the top five customers accounted for 67.15% of total sales, indicating high customer concentration.

3. Funding Pressure and Safety

During the period, the company’s asset-liability ratio was 51.09%, up 13.57% year-on-year; current ratio was 1.6, quick ratio was 1.4; total debt was 4.088 billion yuan, with short-term debt of 1.295 billion yuan, accounting for 31.67% of total debt.

Overall financial condition requires attention to:

• Asset-liability ratio continues to rise. Over the last three annual reports, ratios were 35.46%, 44.98%, and 51.09%, showing an upward trend.

• Current ratio has been declining. Over the last three annual reports, ratios were 2.28, 1.72, and 1.6, indicating weakening short-term debt-paying ability.

Regarding short-term funding pressure:

• Cash ratio has been decreasing. Over the last three annual reports, ratios were 1.32, 1.29, and 1.16.

Regarding long-term funding pressure:

• Total debt to net assets ratio continues to increase. Ratios over the last three years were 24.26%, 49.41%, and 68.43%.

• Broadly defined monetary funds can cover short-term debt, but not long-term debt. During the period, the ratio of broad monetary funds to total debt was 0.78, with funds below total debt.

• The cash coverage ratio of total debt is decreasing. Ratios over the last three years were 2.21, 1.01, and 0.78.

From the perspective of fund management:

• Interest income to monetary funds ratio is less than 1.5%. During the period, the company’s monetary funds were 2.61 billion yuan, short-term debt was 1.29 billion yuan, and the average interest income to funds ratio was 1.246%, below 1.5%.

Regarding fund coordination:

• Capital expenditures consistently exceed net cash flow from operating activities. Over the last three periods, cash paid for fixed assets, intangible assets, and other long-term assets were 830 million, 690 million, and 770 million yuan, respectively, while net cash flows from operating activities were -2 billion, -1.43 billion, and -520 million yuan.

• Free cash flow is negative. Over the last three periods, it was -730 million, -390 million, and -1.3 billion yuan.

• The company has ample funds. During the period, operating funds demand was -930 million yuan, working capital was 1.68 billion yuan, and cash payment capacity was 2.61 billion yuan, indicating sufficient liquidity, though usage efficiency warrants attention.

4. Operating Efficiency

During the reporting period, accounts receivable turnover was 4.92, up 25.3%; inventory turnover was 0.81, up 10.15%; total asset turnover was 0.22, up 22.48%.

From long-term assets perspective, the following points are noteworthy:

• Significant changes in construction in progress. During the period, construction in progress was 2.57 billion yuan, an increase of 38.37% from the beginning of the period.

• Construction in progress exceeds fixed assets. During the period, construction in progress was 2.57 billion yuan, while fixed assets were 2.22 billion yuan, with construction in progress surpassing fixed assets.

• Long-term deferred expenses have changed significantly from the beginning of the period. During the period, long-term deferred expenses were 9.759 million yuan, an increase of 59.47%.

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Sina Finance Listed Company Financial Report Eagle Eye Warning System: An intelligent professional analysis system for listed company financial reports. Eagle Eye Warning 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, funding pressure and safety, and operational efficiency, providing visual alerts of 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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