Eagle Eye Warning: Ruifeng New Material Sales Gross Margin Declined

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

On March 21, Ruifeng New Material released its 2025 annual report, with an audit opinion of standard unqualified opinion.

The report shows that the company’s total operating revenue for 2025 was 3.508 billion yuan, an increase of 11.11% year-on-year; net profit attributable to shareholders was 736 million yuan, up 1.92%; net profit after deducting non-recurring gains and losses was 668 million yuan, a decrease of 1.8%; basic earnings per share were 2.5 yuan/share.

Since listing in November 2020, the company has paid cash dividends five times, totaling 1.306 billion yuan. The announcement states that the company plans to distribute a cash dividend of 15 yuan (tax included) for every 10 shares to all shareholders.

The Listed Company Financial Report Eagle Eye Warning System performs intelligent quantitative analysis of Ruifeng New Material’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 3.508 billion yuan, an increase of 11.11%; net profit was 742 million yuan, up 2.43%; net cash flow from operating activities was 747 million yuan, an increase of 71.4%.

From the perspective of revenue, costs, and period expenses ratio, key points to monitor:

• The change in sales expenses differs significantly from the change in operating revenue. During the reporting period, operating revenue increased by 11.11% year-on-year, while sales expenses increased by 35.09%, showing a large discrepancy.

2. Profitability

During the reporting period, the company’s gross profit margin was 34.6%, down 3.41% year-on-year; net profit margin was 21.14%, down 7.82%; return on equity (weighted) was 20.99%, down 8.46%.

Focusing on operating profit margins:

• Decline in gross profit margin. During the period, gross profit margin was 34.6%, a decrease of 3.41% year-on-year.

From the asset side, focusing on returns:

• Decline in return on net assets. During the period, the weighted average return on net assets was 20.99%, down 8.46% year-on-year.

3. Capital Pressure and Safety

During the reporting period, the company’s asset-liability ratio was 24.47%, up 12.5% year-on-year; current ratio was 2.75, quick ratio was 2.26; total debt was 898 million yuan, of which short-term debt was 766 million yuan, accounting for 85.28% of total debt.

Overall financial condition to monitor:

• The current ratio continues to decline. In the last three annual reports, the current ratios were 4.75, 3.45, and 2.75, indicating weakening short-term debt-paying ability.

Short-term capital pressure:

• The ratio of short-term to long-term debt has increased significantly. During the period, the ratio of short-term debt to long-term debt rose sharply to 4.06.

• Cash ratio continues to decline. In the last three annual reports, the cash ratios were 3.33, 2.3, and 1.6, showing a downward trend.

Long-term capital pressure:

• The ratio of total debt to net assets has been rising steadily. In the last three reports, the ratios were 9.71%, 11.03%, and 18.22%.

• The coverage rate of total debt by cash continues to decrease. In the last three reports, the ratio of broad monetary funds to total debt was 5.39, 3.78, and 2.54, respectively.

From a fund management perspective, key points:

• Interest income to monetary funds ratio is less than 1.5%. During the period, monetary funds were 840 million yuan, short-term debt was 560 million yuan, and the average interest income to funds ratio was 0.856%, below 1.5%.

• Prepaid accounts show large fluctuations. During the period, prepayments were 50 million yuan, with a change rate of 38.79% from the beginning of the period.

• The growth rate of prepayments exceeds that of operating costs. During the period, prepayments increased by 38.79% from the beginning, while operating costs grew by 13.23%, indicating prepayments grew faster than costs.

• Other receivables fluctuate significantly. During the period, other receivables were 7.591 million yuan, with a change rate of 99.88%.

• The ratio of other receivables to current assets continues to rise. In the last three reports, the ratios were 0.06%, 0.14%, and 0.25%.

• Other payables fluctuate greatly. During the period, other payables were 40 million yuan, with a change rate of 34.21%.

4. Operating Efficiency

During the period, the company’s accounts receivable turnover was 7.21 times, down 18.11% year-on-year; inventory turnover was 4.23 times, up 1.54%; total asset turnover was 0.75 times, down 4.46%.

From operating assets perspective, key points:

• Accounts receivable turnover rate continues to decline. In the last three reports, the ratios were 12.95, 8.81, and 7.21, indicating weakening collection efficiency.

• Total asset turnover rate continues to decline. Ratios were 0.78, 0.78, and 0.75, showing decreasing efficiency.

• Revenue per unit of fixed assets decreases annually. Ratios were 5.92, 3.68, and 3.22.

From the perspective of the “Three Expenses” (selling, administrative, R&D costs):

• Sales expenses growth exceeds 20%. During the period, sales expenses were 7.4647 million yuan, up 35.09%.

Click on Ruifeng New Material 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 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 risk identification and early warning for financial institutions, listed companies, and regulatory authorities.

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