Eagle Eye Warning: Suoling Co., Ltd.'s Operating Revenue Significantly Declined

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

On March 23, Suling Co., Ltd. released its 2025 annual report.

The report shows that the company’s total operating revenue for 2025 was 736 million yuan, a decrease of 47.38% year-over-year; net profit attributable to shareholders was -55.06 million yuan, down 191.67%; non-recurring profit and loss attributable to shareholders was -66.15 million yuan, down 232.58%; basic earnings per share were -0.0645 yuan per share.

Since listing in May 2015, the company has paid cash dividends three times, totaling 51.39 million yuan.

The Listed Company Financial Report Eagle Eye Warning System performs intelligent quantitative analysis of Suling Co., Ltd.'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 736 million yuan, a 47.38% decrease; net profit was -57.24 million yuan, down 197.08%; net cash flow from operating activities was -33.76 million yuan, down 291.65%.

Overall performance analysis highlights:

• Significant decline in operating income. During the reporting period, operating income was 740 million yuan, a sharp drop of 47.38%.

• Continuous decline in net profit attributable to shareholders. Over the past three annual reports, the year-over-year changes in net profit attributable to shareholders were 270.64%, 84.26%, and -191.67%, with a downward trend.

• Continuous decline in non-recurring net profit attributable to shareholders. Over the past three years, the YoY changes were 3196.27%, 48.9%, and -232.58%, with a downward trend.

• Net profit turned negative for the first time in three years. During the reporting period, net profit was negative, at -60 million yuan.

• Net profit shows volatility. Over the past three annual reports, net profit was 30 million yuan, 60 million yuan, and -60 million yuan, with YoY changes of 283.66%, 85.9%, and -197.08%, respectively.

Considering cash flow quality, key points include:

• Continuous decline in net cash flow from operating activities. Over the past three years, the net cash flows were 200 million yuan, 20 million yuan, and -30 million yuan, respectively.

2. Profitability

During the reporting period, the company’s gross profit margin was 24.92%, up 14.61% YoY; net profit margin was -7.78%, down 284.49%; return on equity (weighted) was -5.78%, down 171.36%.

Operational profitability highlights:

• Significant increase in gross profit margin. During the period, gross profit margin was 24.92%, an increase of 14.61% YoY.

• Sharp decline in net profit margin. During the period, net profit margin was -7.78%, a decrease of 284.5% YoY.

• Growth in gross profit margin but decline in inventory turnover rate. Gross profit margin increased from 21.75% to 24.92%, while inventory turnover decreased from 6.47 times to 5.12 times.

• Growth in gross profit margin but decline in accounts receivable turnover. Gross profit margin increased from 21.75% to 24.92%, while accounts receivable turnover decreased from 9 times to 6.5 times.

• Growth in gross profit margin but decline in net profit margin. Gross profit margin increased from 21.75% to 24.92%, while net profit margin decreased from 4.22% to -7.78%.

From the asset side, profitability analysis:

• Significant decline in return on net assets. During the period, the weighted average return on net assets was -5.78%, a sharp decrease of 171.36% YoY.

• The average return on net assets over the past three years has been below 7%. The weighted average return on net assets over the last three fiscal years was below 7%.

• Return on invested capital below 7%. During the period, the company’s return on invested capital was -5.35%, with an average over three periods below 7%.

Assessing impairment risk:

• Asset impairment losses changed by more than 30% YoY. During the period, impairment losses were -20 million yuan, a decrease of 1555.61%.

3. Capital Pressure and Safety

The company’s asset-liability ratio was 18.41%, down 39.33% YoY; current ratio was 4.61, quick ratio 4.22; total debt was 35.99 million yuan, all short-term debt.

Short-term capital pressure highlights:

• Significant increase in short-term to long-term debt ratio. The ratio of short-term to long-term debt increased sharply to 1.3.

• Continuous decline in net cash flow from operating activities relative to current liabilities. Over the past three years, the ratio was 0.35, 0.06, and -0.17.

Long-term capital pressure:

• Total debt to net assets ratio continued to rise. Over the past three periods, ratios were 0.36%, 4.12%, and 5.85%.

• Cash coverage ratio of total debt decreased gradually. The ratio of broad monetary funds to total debt was 203.84, 12.58, and 11.02.

From a fund management perspective:

• Large fluctuations in prepayments. During the period, prepayments were 10.17 million yuan, a 131.92% change from the beginning of the period.

• Prepayment growth rate exceeds that of operating costs. During the period, prepayments increased by 131.92% from the beginning, while operating costs decreased by 49.52% YoY.

• Significant changes in other receivables. During the period, other receivables were 10 million yuan, a 232.39% increase from the beginning.

• Growth in other receivables to current assets ratio. Over the past three years, ratios were 0.43%, 0.56%, and 1.44%.

From a fund coordination perspective:

• Free cash flow remains negative. Over the past three years, free cash flows were -30 million yuan, -8.42 million yuan, and -364 million yuan.

4. Operating Efficiency

During the reporting period, the company’s accounts receivable turnover was 6.5 times, down 27.78%; inventory turnover was 5.12 times, down 20.81%; total asset turnover was 0.59, down 48.46%.

Operational asset analysis:

• Significant decline in accounts receivable turnover. During the period, it was 6.5 times, a decrease of 27.78% YoY.

• Large decrease in inventory turnover. During the period, it was 5.12 times, down 20.81%.

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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 institutions, listed companies, and regulatory authorities to identify and warn of financial risks.

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