Eagle Eye Warning: Capital Online's Revenue Declines

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

On March 20, Capital Online 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 RMB 1.237 billion, down 11.47% year over year. The net profit attributable to shareholders was RMB -170 million, up 43.91% year over year. The net profit after non-recurring items attributable to shareholders was RMB -186 million, up 37.09% year over year. Basic earnings per share were RMB -0.3389 per share.

Since the company was listed in June 2020, it has distributed cash dividends once, with cumulative cash dividends already implemented totaling RMB 20.5658 million.

The listed-company earnings hawk-eye early warning system performs intelligent quantitative analysis of Capital Online’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 RMB 1.237 billion, down 11.47% year over year; net profit was RMB -159 million, up 46.02% year over year; net cash flow from operating activities was RMB 180 million, down 25.37% year over year.

From the overall performance standpoint, the following should be重点关注:

• Operating revenue declined. During the reporting period, operating revenue was RMB 1.24 billion, down 11.47% year over year.

• Operating profit was negative for three consecutive quarters. During the reporting period, operating profit for the most recent three quarters was RMB -0.3 billion, RMB -0.3 billion, and RMB -0.5 billion, continuing to be negative.

| Item | 20250630 | 20250930 | 20251231 | | Operating profit (yuan) | -25.8508 million | -25.1493 million | -53.1661 million |

• Operating revenue and net profit moved in opposite directions. During the reporting period, operating revenue fell 11.47% year over year, while net profit rose 46.02% year over year, showing a divergence between the changes in operating revenue and net profit.

From the allocation between revenue costs and period expenses, the following should be重点关注:

• Operating revenue and taxes and surcharges moved in opposite directions. During the reporting period, operating revenue changed -11.47% year over year, while taxes and surcharges changed 7.73% year over year; operating revenue and taxes and surcharges moved in opposite directions.

By combining cash flow quality, the following should be重点关注:

• The ratio of net cash flow from operating activities to net profit continues to decline. In the past three half-year reports, the ratio of net cash flow from operating activities to net profit was -0.51, -0.82, and -1.13 respectively, continuing to decline; the quality of earnings shows a downward trend.

II. Profitability

During the reporting period, the company’s gross profit margin was 13.05%, up 61.78% year over year; the net profit margin was -12.85%, up 39.03% year over year; and the return on equity (weighted) was -19.81%, up 33.75% year over year.

Combining the company’s operating end and the resulting returns, the following should be重点关注:

• Gross profit margin from sales rose significantly. During the reporting period, the gross profit margin from sales was 13.05%, up significantly by 61.78% year over year.

Combining the company’s asset side and the resulting returns, the following should be重点关注:

• Over the most recent three years, average return on equity was below 7%. During the reporting period, the weighted average return on equity was -19.81%; the average weighted average return on equity over the most recent three accounting years was below 7%.

• Return on invested capital was below 7%. During the reporting period, the company’s return on invested capital was -9.72%; the average value over the three reporting periods was below 7%.

| Item | 20231231 | 20241231 | 20251231 | | Return on invested capital | -20.74% | -18.52% | -9.72% |

III. Capital Pressure and Safety

During the reporting period, the company’s asset-liability ratio was 58.36%, up 17.63% year over year; the current ratio was 0.98, and the quick ratio was 0.98. Total debt was RMB 545 million, of which short-term debt was RMB 424 million; short-term debt as a proportion of total debt was 77.73%.

From the perspective of long-term capital pressure, the following should be重点关注:

• Short-term debt can be covered by broad money, but long-term debt cannot. During the reporting period, the ratio of broad money to total debt was 0.69, and broad money was less than total debt.

From the perspective of capital management and control, the following should be重点关注:

• Interest income / money funds ratio is less than 1.5%. During the reporting period, money funds were RMB 400 million, short-term debt was RMB 420 million. The company’s average interest income / money funds ratio was 0.526%, lower than 1.5%.

• Prepaid accounts show a relatively large change. During the reporting period, prepaid accounts were RMB 10 million, with a period-beginning change rate of 255.44%.

• The growth rate of prepaid accounts is higher than the growth rate of operating costs. During the reporting period, prepaid accounts increased by 255.44% compared with the beginning of the period, while operating costs grew by -16.27% year over year; the growth rate of prepaid accounts is higher than the growth rate of operating costs.

| Item | 20231231 | 20241231 | 20251231 | | Prepaid accounts growth rate vs. beginning of period | -7.72% | -67.21% | 255.44% | | Operating cost growth rate | 13.1% | 7.91% | -16.27% |

IV. Operating Efficiency

During the reporting period, the company’s accounts receivable turnover ratio was 4.39, up 0.38%; inventory turnover ratio was 1860.75, up 366.22%; and total asset turnover ratio was 0.62, down 10.63% year over year.

From long-term assets, the following should be重点关注:

• Construction in progress (CIP) changed significantly. During the reporting period, construction in progress was RMB 100 million, up 140.8% from the beginning of the period.

• Changes in other non-current assets were relatively large. During the reporting period, other non-current assets were RMB 30 million, up 320.92% from the beginning of the period.

From the perspective of the “three fees” dimensions, the following should be重点关注:

• The ratio of selling expenses to operating revenue continues to grow. In the past three annual reports, the ratio of selling expenses to operating revenue was 4.47%, 4.56%, and 4.79%, respectively, showing continuous growth.

Click the Capital Online hawk-eye early warning to view the latest alert details and a visual financial report preview.

Introduction to Sina Finance listed-company earnings hawk-eye early warning: The listed-company earnings hawk-eye early warning is an intelligent professional analysis system for listed-company financial reports. By gathering a large number of authoritative financial experts from accounting firms and listed companies, the hawk-eye early warning tracks and interprets the latest financial reports of listed companies across multiple dimensions such as company performance growth, earnings quality, capital pressure and safety, and operating efficiency, and highlights potential financial risk points in a graphical and text format. It provides professional, efficient, and convenient technical solutions for identifying and issuing early warnings of financial risks of listed companies for financial institutions, listed companies, regulatory authorities, and others.

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