Guangzhou Restaurant (603043) 2025 Annual Report Brief Analysis: Revenue Growth Without Profit Growth

According to publicly available data compiled by Securities Star, Guangzhou Restaurant (603043) recently released its annual report for 2025. The financial report shows that Guangzhou Restaurant increased revenue but not profit. As of the end of this reporting period, the company’s total operating revenue was 5.382 billion yuan, a year-on-year increase of 5.04%, and the net profit attributable to shareholders was 488 million yuan, a year-on-year decrease of 1.19%. In terms of quarterly data, the total operating revenue for the fourth quarter was 1.097 billion yuan, a year-on-year increase of 7.49%, while the net profit attributable to shareholders in the fourth quarter was 38.56 million yuan, a year-on-year decrease of 15.88%.

This data is below the expectations of most analysts, who previously anticipated net profit for 2025 to be around 540 million yuan.

The various data indicators disclosed in this financial report performed moderately. Among them, the gross profit margin was 31.6%, down 0.38% year-on-year, the net profit margin was 9.58%, down 5.39% year-on-year, and the total selling, administrative, and financial expenses amounted to 974 million yuan, accounting for 18.1% of revenue, a year-on-year decrease of 0.92%. The net asset value per share was 6.92 yuan, a year-on-year increase of 1.52%, the operating cash flow per share was 1.31 yuan, a year-on-year decrease of 16.37%, and earnings per share were 0.86 yuan, a year-on-year decrease of 1.19%.

The reasons for significant changes in financial items in the financial statements are explained as follows:

1. The change in net cash flow from operating activities was -16.37%, due to the company’s engagement in bank acceptance bill business resulting in an increase in restricted deposits, reflected under the “Payments for other operating activities” item, with the balance of “bank bill guarantee deposits” being 126,065,648.87 yuan at the end of the reporting period.
2. The change in net cash flow from investing activities was 8.49%, due to an increase in cash received from maturing large deposits.
3. The change in net cash flow from financing activities was 70.69%, due to an increase in cash received from the discounting of bank acceptance bills.
4. The change in cash and cash equivalents was 37.53%, due to an increase in bank acceptance bill discounting business.
5. The change in trading financial assets was 10,598.9%, due to an increase in the purchase of bank wealth management products.
6. The change in accounts receivable was -92.96%, due to the collection of maturing bank acceptance bills.
7. The change in other current assets was 56.62%, due to the purchase of treasury reverse repurchase products and an increase in the value-added tax input tax credit.
8. The change in construction in progress was -84.75%, due to the completion of construction projects for production bases and restaurants.
9. The change in short-term loans was 56.88%, due to an increase in short-term financing through bank acceptance bills and letters of credit.
10. The change in notes payable was -46.8%, due to an increase in the settlement of bank acceptance bill business.
11. The reason for the change in long-term loans: an increase in special loans for repurchasing company stock.
12. The change in long-term payables was -56.86%, due to payments made this period for equity acquisition of Haiyue Taotaoju that met the contractual conditions, and a reduction in payable equity acquisition amounts of 4.3572 million yuan due to the early closure of the Taotaoju Huanshi East store.

The financial analysis tool from Securities Star indicates:

• Business Evaluation: The company’s ROIC last year was 9.09%, indicating average capital returns. The net profit margin last year was 9.58%, suggesting that the added value of the company’s products or services is average after accounting for all costs. From the historical annual report data, the median ROIC since the company’s listing has been 19.34%, showing good investment returns, with the worst year being 2025 with a ROIC of 9.09%, still indicating relatively good investment returns. The company’s historical financial reports have been relatively good (Note: The company has been listed for less than 10 years; the longer the listing time, the more referenced significance the financial averages hold.).

• Business Model: The company’s performance relies primarily on marketing efforts. It is necessary to examine the actual conditions behind these driving forces carefully.

• Business Breakdown: The company’s net return on operating assets in the past three years (2023/2024/2025) was 23.9%/21.4%/20.6%, with net operating profits of 583 million/519 million/516 million yuan, and net operating assets of 2.441 billion/2.421 billion/2.501 billion yuan.

  The company’s working capital/revenue over the past three years (2023/2024/2025) were -0.02/-0.02/-0.02, where working capital (money the company itself pays during production and operation) was -78.77 million/-85.09 million/-91.86 million yuan, with revenues of 4.901 billion/5.124 billion/5.382 billion yuan.

The financial health tool indicates:

1. It is advisable to pay attention to the company’s cash flow situation (cash and cash equivalents/current liabilities are only 64.01%).

The above content has been compiled by Securities Star based on publicly available information and generated by AI algorithms (Internet Communication Algorithm Record No. 310104345710301240019), and does not constitute investment advice.