Eagle Eye Warning: STAC's net cash flow from operating activities to net profit ratio is below 1

Sina Finance Listed Company Research Institute | Earnings Eye Early Warning

On March 20, Saitak released its 2025 annual report. The audit opinion was a standard unqualified audit opinion.

The report shows that the company’s operating revenue for the full year of 2025 was 481 million yuan, up 38.08%; its net profit attributable to shareholders was 112 million yuan, up 44.56%; its net profit after deducting non-recurring items attributable to shareholders was 103 million yuan, up 53.46%; and its basic earnings per share were 1.0881 yuan per share.

Since the company’s listing in November 2023, it has paid cash dividends 2 times, with cumulative cash dividends implemented of 128 million yuan. The announcement shows that the company plans to distribute cash dividends of 6 yuan for every 10 shares to all shareholders (including tax).

The Listed Company Earnings Eye Early Warning System conducts intelligent quantitative analysis of Saitak’s 2025 annual report from four major dimensions: earnings quality, profitability, funding pressure and safety, and operating efficiency.

I. Earnings Quality

During the reporting period, the company’s revenue was 481 million yuan, up 38.08%; net profit was 112 million yuan, up 44.56%; and net cash flow from operating activities was 96.8885 million yuan, up 149.48%.

From the overall earnings perspective, attention should be focused on:

• The year-over-year growth rate of operating revenue for the past three quarters has continued to decline. During the reporting period, operating revenue grew by 28.24% year over year, and the growth rate for the past three quarters continued to decline.

• Net profit has been relatively volatile. In the past three annual reports, net profit was 100 million, 80 million, and 110 million respectively; the year-over-year changes were -14.55%, -22.21%, and 44.56% respectively, indicating net profit has been relatively volatile.

From the matching of revenue, costs, and period expenses, attention should be focused on:

• The change in selling expenses differs greatly from the change in operating revenue. During the reporting period, operating revenue changed by 38.08% year over year, selling expenses changed by 8.21% year over year, and the difference between selling expenses and operating revenue changes is large.

In light of cash flow quality, attention should be focused on:

• The ratio of net cash flow from operating activities to net profit is below 1. During the reporting period, the ratio of net cash flow from operating activities to net profit was 0.867, below 1, indicating weaker profitability quality.

II. Profitability

During the reporting period, the company’s gross margin was 49.98%, down 0.17% year over year; the net profit margin was 23.21%, up 4.69% year over year; and return on net assets (weighted) was 11.02%, up 42.56% year over year.

Combining the company’s operating performance to evaluate returns, attention should be focused on:

• Gross margin on sales continues to decline. In the past three annual reports, the gross margins on sales were 51.06%, 50.07%, and 49.98% respectively, with a continuing downward trend.

• Sales gross margin declines while sales net profit margin increases. During the reporting period, the gross margin on sales fell from 50.07% in the prior-year period to 49.98%, while the sales net profit margin rose from 22.17% in the prior-year period to 23.21%.

III. Funding Pressure and Safety

During the reporting period, the company’s asset-liability ratio was 12.83%, up 13.17% year over year; the current ratio was 5.82, and the quick ratio was 4.51; total debt was 1.4881 million yuan, of which short-term debt was 1.4881 million yuan; the ratio of short-term debt to total debt was 100%.

From an overall view of the financial position, attention should be focused on:

• The current ratio continues to decline. In the past three annual reports, the current ratios were 11.12, 6.7, and 5.82 respectively, indicating weakening short-term solvency.

From short-term funding pressure, attention should be focused on:

• The cash ratio continues to decline. In the past three annual reports, the cash ratios were 6.33, 4.46, and 3.71 respectively, showing a continuous decline.

From the perspective of capital control, attention should be focused on:

• Interest income / cash and cash equivalents is below 1.5%. During the reporting period, cash and cash equivalents were 530 million yuan, and short-term debt was 1.488 million yuan. The company’s average interest income / cash and cash equivalents ratio was 0.248%, which is below 1.5%.

• Prepayments to suppliers show a relatively large change. During the reporting period, prepayments were 5.061 million yuan, with a period-beginning change rate of 66.3%.

• The ratio of prepayments to current assets continues to increase. In the past three annual reports, the ratio of prepayments to current assets was 0.15%, 0.36%, and 0.57% respectively, continuing to rise.

• The growth rate of prepayments is higher than the growth rate of operating costs. During the reporting period, prepayments increased by 66.3% compared with the beginning of the period; operating costs grew 38.32% year over year. The prepayment growth rate is higher than the operating cost growth rate.

• Other payables show a relatively large change. During the reporting period, other payables were 2.668 million yuan, with a period-beginning change rate of 81.8%.

IV. Operating Efficiency

During the reporting period, the company’s accounts receivable turnover was 8.39, up 36.61%; inventory turnover was 1.27, up 10.21%; and total asset turnover was 0.41, up 31.98%.

From operating assets, attention should be focused on:

• Accounts receivable notes continue to increase. In the past three annual reports, the ratio of accounts receivable notes to current assets was 1.29%, 3.27%, and 3.63% respectively, continuing to rise. The ratios of “other cash received related to operating activities / accounts receivable notes” were 53.32%, 32.3%, and 19.85% respectively, continuing to decline.

• The ratio of inventory / total assets continues to increase. In the past three annual reports, the ratio of inventory / total assets was 11.15%, 15.9%, and 16.62% respectively, continuing to rise.

From long-term assets, attention should be focused on:

• Property, plant and equipment changes are relatively large. During the reporting period, property, plant and equipment were 250 million yuan, up 139.77% from the beginning of the period.

• The unit property, plant and equipment income production value declines year by year. In the past three annual reports, the ratios of operating revenue / original value of property, plant and equipment were 3.83, 3.34, and 1.92 respectively, showing a continuous decline.

• Construction in progress changes are relatively large. During the reporting period, construction in progress was 5.053 million yuan, up 67.68% from the beginning of the period.

• Long-term prepaid expenses show relatively large changes from the beginning of the period. During the reporting period, long-term prepaid expenses were 3.878 million yuan, up 72.28% from the beginning of the period.

From the three-fee (expense) dimensions, attention should be focused on:

• Administrative expense growth exceeds 20%. During the reporting period, administrative expenses were 30 million yuan, up 36.1%.

Click Saitak’s Earnings Eye Early Warning to view the latest early warning details and a visual preview of the financial report.

Sina Finance Listed Company Financial Report Earnings Eye Early Warning Introduction: The Listed Company Financial Report Earnings Eye Early Warning is a specialized, intelligent analytics system for financial reports of listed companies. By gathering a large number of authoritative financial experts from accounting firms and listed companies, the Earnings Eye Early Warning tracks and interprets the latest financial reports of listed companies from multiple dimensions, such as company earnings growth, earnings quality, funding pressure and safety, and operating efficiency, and presents potentially existing financial risk points in a visual (text and graphics) format. It provides professional, efficient, and convenient technical solution for the identification and early warning of financial risks of listed companies to financial institutions, listed companies, regulatory authorities, and others.

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Editor: Xiao Lang Kuaibao