Eagle Eye Warning: Liren Lizhuang's Operating Revenue Declines

Sina Finance Listed Company Research Institute | Earnings Hawk-Eye Early Warning

On March 28, Li Ren Li Zhuang released its 2025 annual report. The audit opinion is a standard unqualified audit opinion with no reservations.

The report shows that the company’s total operating revenue for 2025 was 1.692 billion yuan, down 2.08% year over year; net profit attributable to shareholders was -79.9912 million yuan, down 227.83% year over year; profit attributable to shareholders after deducting non-recurring items was -72.1784 million yuan, down 80.52% year over year; basic earnings per share was -0.2 yuan/share.

Since the company went public in September 2020, it has paid cash dividends 4 times, with total cash dividends implemented of 179 million yuan.

The Listed Company Earnings Hawk-Eye Early Warning System conducts intelligent quantitative analysis of Li Ren Li Zhuang’s 2025 annual report across four major dimensions: performance quality, profitability, capital pressure and safety, and operating efficiency.

I. Performance Quality

During the reporting period, the company’s revenue was 1.692 billion yuan, down 2.08% year over year; net profit was -79.9431 million yuan, down 205.04% year over year; net cash flow from operating activities was 126 million yuan, down 71.29% year over year.

From the overall performance perspective, it is necessary to重点 focus on:

• Operating revenue declined. During the reporting period, operating revenue was 1.69 billion yuan, down 2.09% year over year.

• The growth rate of net profit attributable to shareholders continued to decline. In the past three annual reports, the year-over-year changes in net profit attributable to shareholders were 121.19%, -182.64%, and -227.83%, respectively, with the downward trend continuing.

| Item | 20231231 | 20241231 | 20251231 | | Net profit attributable to shareholders (yuan) | 29.5276 million | -24.4003 million | -79.9912 million | | Growth rate of net profit attributable to shareholders | 121.19% | -182.64% | -227.83% |

• Profit attributable to shareholders after deducting non-recurring items fell significantly. During the reporting period, profit attributable to shareholders after deducting non-recurring items was -0.7 billion yuan, down sharply by 80.52% year over year.

| Item | 20231231 | 20241231 | 20251231 | | Profit after deducting non-recurring items attributable to shareholders (yuan) | 11.8533 million | -39.9833 million | -72.1784 million | | Growth rate of profit after deducting non-recurring items attributable to shareholders | 106.88% | -437.32% | -80.52% |

• Operating profit has been negative for three consecutive quarters. During the reporting period, operating profit in the most recent three quarters was -0.2 billion yuan, -1.307 million yuan, and -0.3 billion yuan, remaining negative throughout.

| Item | 20250630 | 20250930 | 20251231 | | Operating profit (yuan) | -16.6473 million | -1.3071 million | -30.6351 million |

• Net profit has been loss-making for two consecutive years. In the past three annual reports, net profit was 0.3 billion yuan, -0.3 billion yuan, and -0.8 billion yuan, showing losses for two consecutive years.

| Item | 20231231 | 20241231 | 20251231 | | Net profit (yuan) | 27.2375 million | -26.2074 million | -79.9431 million |

II. Profitability

During the reporting period, the company’s gross margin was 39.76%, up 10.78% year over year; net profit margin was -4.72%, down 211.54% year over year; return on net assets (weighted) was -3.27%, down 237.11% year over year.

In combination with the company’s business operations, it is necessary to focus on:

• Sales gross margin increased significantly. During the reporting period, sales gross margin was 39.76%, up sharply by 10.78% year over year.

• Sales net profit margin continued to decline. In the past three annual reports, sales net profit margins were 0.99%, -1.52%, and -4.72%, respectively, with the trend continuing downward.

| Item | 20231231 | 20241231 | 20251231 | | Sales net profit margin | 0.99% | -1.52% | -4.72% | | Growth rate of sales net profit margin | 122.29% | -253.8% | -211.54% |

• Sales gross margin has been rising while sales net profit margin has been falling continuously. In the past three annual reports, sales gross margin was 34.57%, 35.89%, and 39.76%, showing continuous growth, while sales net profit margin was 0.99%, -1.52%, and -4.72%, showing continuous decline.

In combination with the company’s asset side, it is necessary to focus on:

• The average return on net assets over the last three years is below 7%. During the reporting period, the weighted average return on net assets was -3.27%, and the weighted average return on net assets over the last three accounting years was below 7%.

| Item | 20231231 | 20241231 | 20251231 | | Return on net assets | 1.17% | -0.97% | -3.27% | | Growth rate of return on net assets | 122.08% | -182.91% | -237.11% |

• Return on net assets continues to decline. In the past three annual reports, the weighted average return on net assets was 1.17%, -0.97%, and -3.27%, respectively, with the trend continuing downward.

| Item | 20231231 | 20241231 | 20251231 | | Return on net assets | 1.17% | -0.97% | -3.27% | | Growth rate of return on net assets | 122.08% | -182.91% | -237.11% |

• Return on invested capital is below 7%. During the reporting period, the company’s return on invested capital was -3.23%, and the average value across the three reporting periods was below 7%.

| Item | 20231231 | 20241231 | 20251231 | | Return on invested capital | 1.04% | -0.92% | -3.23% |

From non-recurring items, it is necessary to focus on:

• Non-recurring gains make up a relatively high proportion. During the reporting period, the ratio of non-recurring gains to net profit was 35.5%. (Note: Non-recurring gains = net investment gains + net gains from fair value changes + non-operating income + losses from disposal of non-current assets).

| Item | 20231231 | 20241231 | 20251231 | | Non-recurring gains (yuan) | 11.7659 million | 5.3568 million | -28.3401 million | | Net profit (yuan) | 27.2375 million | -26.2074 million | -79.9431 million | | Non-recurring gains / net profit | -44.9% | -20.44% | 35.5% |

From whether there is an impairment risk, it is necessary to focus on:

• The year-over-year change rate of asset impairment losses exceeds 30%. During the reporting period, asset impairment losses were -0.6 billion yuan, down 159.58% year over year.

| Item | 20231231 | 20241231 | 20251231 | | Asset impairment losses (yuan) | -111 million | -22.1069 million | -57.3849 million |

III. Capital Pressure and Safety

During the reporting period, the company’s asset-liability ratio was 12.21%, up 23.49% year over year; the current ratio was 5.55, and the quick ratio was 4.28; total debt was 74.1979 million yuan, of which short-term debt was 74.1979 million yuan; the ratio of short-term debt to total debt was 100%.

From short-term capital pressure, it is necessary to focus on:

• The ratio of short-term to long-term debt increased significantly. During the reporting period, short-term debt / long-term debt increased sharply to 15.28.

IV. Operating Efficiency

During the reporting period, the company’s accounts receivable turnover ratio was 37.44, up 13.55%; inventory turnover ratio was 2.39, up 42.51%; total asset turnover ratio was 0.62, up 3.6%.

For long-term assets, it is necessary to focus on:

• Other non-current assets account for a relatively high share. During the reporting period, other non-current assets / total assets was 22.18%.

• Intangible assets changed significantly. During the reporting period, intangible assets were 0.2 billion yuan, up 2255.61% from the beginning of the period.

From the three expense categories (three fees), it is necessary to focus on:

• The ratio of selling expenses / operating revenue continued to increase. In the past three annual reports, the ratio of selling expenses / operating revenue was 24.74%, 29.45%, and 33.48%, respectively, showing continuous growth.

Click Li Ren Li Zhuang’s Hawk-Eye Early Warning to view the latest alert details and a visual preview of the financial report.

Sina Finance Listed Company Financial Report Hawk-Eye Early Warning Introduction: The Listed Company Financial Report Hawk-Eye Early Warning is an intelligent professional analysis system for listed company financial reports. By gathering a large number of authoritative financial experts, such as accounting firms and listed companies, Hawk-Eye Early Warning tracks and interprets the latest financial reports of listed companies across multiple dimensions, including company performance growth, earnings quality, capital pressure and safety, and operating efficiency, and uses charts and text to highlight potential financial risk points. It provides a technical solution for professional, efficient, and convenient identification and early warning of financial risks of listed companies for financial institutions, listed companies, regulatory authorities, and more.

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Editor: Xiao Lang Express