Eagle Eye Warning: Zhimingda's net profit diverges from net cash flow from operating activities

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

On March 25th, Zhimingda released its 2025 annual report.

The report shows that the company’s total operating revenue for 2025 is 709 million yuan, a year-on-year increase of 61.87%; net profit attributable to the parent company is 102 million yuan, a year-on-year increase of 425.27%; non-recurring net profit attributable to the parent is 97.4863 million yuan, a year-on-year increase of 704.06%; basic earnings per share are 0.61 yuan/share.

Since its listing in March 2021, the company has paid cash dividends four times, with a total cash dividend of 52.5689 million yuan.

The Listed Company Financial Report Eagle Eye Warning System conducts intelligent quantitative analysis of Zhimingda’s 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 709 million yuan, a year-on-year increase of 61.87%; net profit was 102 million yuan, a year-on-year increase of 424.79%; net cash flow from operating activities was -71.5259 million yuan, a decrease of 216.14% year-on-year.

From the overall performance perspective, key points to watch:

• Net profit is quite volatile. In the past three annual reports, net profits were 100 million, 20 million, and 100 million yuan, with year-on-year changes of 27.73%, -79.79%, and 424.79%, respectively, indicating significant fluctuation.

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

• The difference between sales expenses and operating income changes is large. During the reporting period, operating income increased by 61.87% year-on-year, while sales expenses increased by 5.33%, showing a significant difference.

From cash flow quality perspective, key points to focus on:

• Divergence between operating income and net cash flow from operating activities. During the period, operating income increased by 61.87% year-on-year, but net cash flow from operating activities decreased by 216.14%, indicating a divergence.

• Divergence between net profit and net cash flow from operating activities. During the period, net profit was 100 million yuan, while net cash flow from operating activities was -70M yuan, showing divergence.

• The ratio of net cash flow from operating activities to net profit is less than 1. During the period, this ratio was -0.701, indicating weaker earnings quality.

2. Profitability Level

During the reporting period, the company’s gross profit margin was 44.84%, a decrease of 0.01% year-on-year; net profit margin was 14.4%, an increase of 224.21%; return on equity (weighted) was 8.78%, an increase of 393.26%.

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

• Decline in gross profit margin. During the period, gross profit margin was 44.84%, down 0.01% year-on-year.

• Gross profit margin decreased, but net sales profit margin increased. During the period, gross profit margin remained at 44.84%, while net profit margin increased from 4.44% to 14.4%.

From the risk of impairment, focus on:

• The year-on-year change rate of impairment losses exceeds 30%. During the period, impairment losses were -20 million yuan, a decrease of 554.13%.

From customer concentration and minority shareholders perspectives, focus on:

• The top five customers account for a large proportion of revenue. During the period, sales to the top five customers accounted for 95.28% of total sales, indicating high customer concentration.

3. Capital Pressure and Safety

During the period, the company’s asset-liability ratio was 32.81%, an increase of 18.2% year-on-year; current ratio was 2.59, quick ratio was 2.21; total debt was 306 million yuan, with short-term debt at 306 million yuan, accounting for 100% of total debt.

From overall financial status, focus on:

• The current ratio has been declining. In the past three annual reports, it was 3.51, 2.87, and 2.59, indicating weakening short-term debt-paying ability.

From short-term capital pressure, focus on:

• The ratio of short-term to long-term debt continues to grow. In the past three reports, the short-term debt/long-term debt ratios were 1.49, 10.14, and 503.61, showing an increasing trend.

• Cash ratio continues to decline. In the past three reports, it was 1.28, 1.08, and 0.65.

From capital management perspective, focus on:

• Interest income to monetary funds ratio is less than 1.5%. During the period, monetary funds were 240 million yuan, short-term debt was 200 million yuan, and the average interest income/monetary funds ratio was 0.111%, below 1.5%.

• Large fluctuations in prepayments. During the period, prepayments were 20 million yuan, with a change rate of 1948.75% from the beginning of the period.

• The growth rate of prepayments exceeds that of operating costs. During the period, prepayments increased by 1948.75% from the beginning, while operating costs grew by 61.89%, indicating prepayments grew faster.

• Large fluctuations in notes payable. During the period, notes payable were 110 million yuan, a change rate of 114.39% from the beginning.

From capital coordination perspective, focus on:

• Capital expenditures have been consistently higher than net cash inflows from operating activities. In the past three reports, cash paid for fixed assets, intangible assets, and other long-term assets were 80 million, 60 million, and 10 million yuan, respectively, while net cash flows from operating activities were 858.4k, 61.5856 million, and -71.5259 million.

4. Operating Efficiency Level

During the period, accounts receivable turnover was 0.85, up 30.62%; inventory turnover was 1.65, up 54.69%; total asset turnover was 0.39, up 37.34%.

From operating assets perspective, focus on:

• The proportion of accounts receivable to total assets continues to grow. In the past three reports, accounts receivable/total assets ratios were 43.5%, 44.53%, and 47.56%, showing a steady increase.

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Sina Finance Listed Company Financial Report Eagle Eye Warning Introduction: The Eagle Eye Warning system 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.

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