Eagle Eye Warning: Haishun New Materials Revenue Declined

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

On March 25, Heshun New Materials 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 1.11B yuan, down 3.3% year-on-year; net profit attributable to parent is -23.2669 million yuan, down 131.19% year-on-year; non-recurring net profit attributable to parent is -46.7988 million yuan, down 167.22% year-on-year; basic earnings per share are -0.13 yuan per share.

Since listing in January 2016, the company has paid cash dividends 12 times, with a total cash dividend of 333 million yuan.

The Listed Company Financial Report Eagle Eye Warning System conducts intelligent quantitative analysis of Heshun New Materials’ 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 1.11B yuan, a decrease of 3.3% year-on-year; net profit was -15.8412 million yuan, a decrease of 119.58%; net cash flow from operating activities was 95.5865 million yuan, down 40.74%.

From the overall performance perspective, key points to focus on:

• Decline in operating income. During the reporting period, operating income was 1.1 billion yuan, down 3.3%.

• Significant decline in net profit attributable to parent. During the reporting period, net profit attributable to parent was -20M yuan, a sharp decrease of 131.19%.

• Significant decline in non-recurring net profit attributable to parent. During the reporting period, non-recurring net profit attributable to parent was -46.7988 million yuan, down 167.23%.

• First net loss in three years. During the reporting period, net profit turned negative, at -1.02B yuan.

From the perspective of revenue, cost, and period expenses ratio, key points to focus on:

• Divergence between operating revenue and taxes and surcharges. During the reporting period, operating revenue decreased by 3.3% year-on-year, while taxes and surcharges increased by 17.2%, showing divergence.

Regarding the quality of operating assets, focus on:

• Continuous increase in accounts receivable/revenue ratio. Over the past three annual reports, the ratios are 24.78%, 26.44%, and 27.81%, respectively, showing continuous growth.

2. Profitability Level

During the reporting period, the company’s gross profit margin was 22.38%, down 22.36% year-on-year; net profit margin was -1.43%, down 120.25%; return on equity (weighted) was -1.38%, down 133.41%.

From the company’s operational earnings perspective, focus on:

• Continuous decline in gross profit margin. Over the past three annual reports, gross profit margins are 30.19%, 28.83%, and 22.38%, with a continuing downward trend.

• Continuous decline in net profit margin. Over the past three annual reports, net profit margins are 9.24%, 7.08%, and -1.43%, with a downward trend.

From the company’s asset side, focus on:

• 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 -1.38%, with an average below 7% over the last three fiscal years.

• Continuous decline in return on net assets. Over the past three annual reports, the weighted average return on net assets is 4.88%, 4.13%, and -1.38%, with a downward trend.

• Return on invested capital below 7%. During the reporting period, the company’s return on invested capital was -0.48%, with an average below 7% over the three periods.

Regarding impairment risks, focus on:

• Goodwill change rate exceeding 30%. During the reporting period, goodwill balance was 20 million yuan, with a change rate of 370.48% from the beginning of the period.

• Asset impairment loss amount change rate exceeding 30%. During the reporting period, asset impairment loss was -50 million yuan, decreasing by 184.43% year-on-year.

3. Capital Pressure and Safety

During the reporting period, the company’s asset-liability ratio was 43.05%, up 17.43% year-on-year; current ratio was 2.27, quick ratio was 1.89; total debt was 922 million yuan, with short-term debt of 302 million yuan, accounting for 32.72% of total debt.

From overall financial status, focus on:

• Continuous increase in asset-liability ratio. Over the past three annual reports, ratios are 35.62%, 36.66%, and 43.05%, showing upward trend.

• Continuous decline in current ratio. Over the past three years, current ratios are 2.9, 2.44, and 2.27, indicating weakening short-term debt-paying ability.

Regarding short-term capital pressure, focus on:

• Continuous decline in cash ratio. Over the past three years, cash ratios are 1.01, 1.01, and 0.83.

Regarding long-term capital pressure, focus on:

• Broad 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 0.63, with broad monetary funds below total debt.

• Cash coverage rate of total debt gradually decreases. Over the past three years, the ratio of broad monetary funds to total debt is 0.9, 0.73, and 0.63, showing a downward trend.

From cash management perspective, focus on:

• Interest income / monetary funds ratio less than 1.5%. During the period, monetary funds were 3.2 billion yuan, short-term debt was 200 million yuan, and the company’s average interest income / monetary funds ratio was 0.591%, below 1.5%.

• Large fluctuation in prepayment accounts. During the period, prepayments were 20 million yuan, with a change rate of 156.27% from the beginning of the period.

• Prepayment growth rate exceeds that of operating costs. During the period, prepayments increased by 156.27% from the beginning, while operating costs grew by 5.46%, with prepayment growth surpassing operating costs.

4. Operating Efficiency

During the reporting period, the company’s accounts receivable turnover rate was 3.63, down 11.91% year-on-year; inventory turnover rate was 3.96, up 2.11%; total asset turnover rate was 0.38, down 1.92%.

From operating assets, focus on:

• Continuous increase in accounts receivable/total assets ratio. Over the past three annual reports, ratios are 8.47%, 10.47%, and 10.58%, respectively, showing upward trend.

From long-term assets, focus on:

• Declining revenue per unit of fixed assets. Over the past three annual reports, operating income / original fixed assets are 1.97, 1.03, and 0.91, respectively, showing continuous decline.

Click on Heshun New Materials 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 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 company 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.

Eagle Eye Warning Access: Sina Finance APP - Market - Data Center - Eagle Eye Warning or Sina Finance APP - Stock Market Page - Financials - Eagle Eye Warning

Disclaimer: The market carries risks; investment should be cautious. This article is automatically published based on third-party databases and does not represent Sina Finance’s views. All information herein is for reference only and does not constitute personal investment advice. Please refer to official announcements for accuracy. For questions, contact biz@staff.sina.com.cn.