Eagle Eye Warning: Jucan Optoelectronics' Return on Capital Invested is below 7%

Sina Finance Listed Company Research Institute | Financial Report Hawk-Eye Alert

On March 20, Jurun Photoelectric released its 2025 annual report.

The report shows that the company’s operating revenue for the full year of 2025 was RMB 3.127 billion, up 13.33% year over year; net profit attributable to shareholders was RMB 205 million, up 4.82% year over year; non-recurring items excluding net profit attributable to shareholders was RMB 199 million, up 7.1% year over year; and basic earnings per share were RMB 0.28/share.

Since the company’s IPO in September 2017, it has paid cash dividends 8 times, with cumulative cash dividends implemented totaling RMB 284 million.

The listed-company financial report hawk-eye alert system conducts intelligent quantitative analysis of Jurun Photoelectric’s 2025 annual report across four major dimensions: performance quality, profitability, funding pressure and safety, and operating efficiency.

I. Performance Quality

During the reporting period, the company’s revenue was RMB 3.127 billion, up 13.33% year over year; net profit attributable to shareholders was RMB 205 million, up 4.82% year over year; and net cash flow from operating activities was RMB 528 million, up 0.58% year over year.

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

• The year-over-year growth rate of net profit attributable to shareholders continues to decline. In the past three annual reports, the year-over-year changes in net profit attributable to shareholders were 291.41%, 61.44%, and 4.82% respectively, and the downward trend continued.

• The year-over-year growth rate of non-recurring items excluding net profit attributable to shareholders continues to decline. In the past three annual reports, the year-over-year changes in non-recurring items excluding net profit attributable to shareholders were 166.32%, 52.78%, and 7.1% respectively, and the downward trend continued.

From the revenue-cost mix and period expense allocation, the following should be重点关注:

• The change in selling expenses differs greatly from the change in operating revenue. During the reporting period, operating revenue changed by 13.33% year over year; selling expenses changed by -2.29% year over year; and the difference between selling expenses change and operating revenue change is large.

Combining operating asset quality, the following should be重点关注:

• Inventory growth rate is higher than the growth rate of operating costs. During the reporting period, inventories increased by 161.26% compared with the beginning of the period; operating costs increased by 12.68% year over year; and the inventory growth rate was higher than the operating cost growth rate.

• Inventory growth rate is higher than the growth rate of operating revenue. During the reporting period, inventories increased by 161.26% compared with the beginning of the period; operating revenue increased by 13.33% year over year; and the inventory growth rate was higher than the operating revenue growth rate.

II. Profitability

During the reporting period, the company’s gross margin was 14.19%, up 3.64% year over year; net profit margin was 6.56%, down 7.51% year over year; and return on equity (weighted) was 7.43%, up 2.06% year over year.

Combining the company’s operating-side performance for returns, the following should be重点关注:

• Growth in sales gross margin, but decline in sales net profit margin. During the reporting period, the sales gross margin increased from 13.7% in the prior-year period to 14.19%, while the sales net profit margin declined from 7.09% in the prior-year period to 6.56%.

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

• Return on invested capital is below 7%. During the reporting period, the company’s return on invested capital was 6.25%, with an average value below 7% across the three reporting periods.

From the perspectives of customer concentration and minority shareholders, the following should be重点关注:

• The share of sales revenue from the top five customers is relatively large. During the reporting period, the ratio of sales revenue of the top five customers to total sales revenue was 68.36%, indicating overly concentrated customers.

• The share of purchases from the top five suppliers is relatively large. During the reporting period, the ratio of purchases from the top five suppliers to total purchases was 88.12%, so there is a need to watch for the risk of over-reliance on suppliers.

III. Funding Pressure and Safety

During the reporting period, the company’s asset-liability ratio was 43.83%, up 6% year over year; the current ratio was 1.36, and the quick ratio was 1.08; total debt was RMB 1.584 billion, of which short-term debt was RMB 1.584 billion, and the ratio of short-term debt to total debt was 100%.

From the overall view of the financial condition, the following should be重点关注:

• The asset-liability ratio continues to increase. In the past three annual reports, the asset-liability ratio was 39.17%, 41.35%, and 43.83% respectively, showing an increasing trend.

• The current ratio continues to decline. In the past three annual reports, the current ratio was 1.76, 1.42, and 1.36 respectively, indicating weakening short-term solvency capacity.

From short-term funding pressure, the following should be重点关注:

• The cash ratio continues to decline. In the past three annual reports, the cash ratio was 0.91, 0.89, and 0.76 respectively, continuing downward.

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

• The ratio of advances to prepayments / current assets continues to rise. In the past three annual reports, the ratio of advances to prepayments / current assets was 0.06%, 0.29%, and 0.29% respectively, showing ongoing growth.

• Other receivables have changed significantly. During the reporting period, other receivables were RMB 81.67 million, and the change rate compared with the beginning of the period was 77.55%.

• The ratio of other receivables / current assets continues to rise. In the past three annual reports, the ratio of other receivables / current assets was 0.09%, 0.17%, and 0.27% respectively, continuing to increase.

• Other payables have changed significantly. During the reporting period, other payables were RMB 100 million, and the change rate compared with the beginning of the period was 2986.8%.

IV. Operating Efficiency

During the reporting period, the company’s accounts receivable turnover rate was 6.35, up 6.25%; the inventory turnover rate was 6.2, down 40% year over year; and total asset turnover was 0.64, up 9.22%.

From operating assets, the following should be重点关注:

• Inventory turnover rate declines significantly. During the reporting period, the inventory turnover rate was 6.2, down significantly by 40% year over year.

• The proportion of accounts receivable / total assets continues to grow. In the past three annual reports, the ratio of accounts receivable / total assets was 9.67%, 10.04%, and 10.21% respectively, continuing to increase.

• The ratio of inventory / total assets continues to rise. In the past three annual reports, the ratio of inventory / total assets was 4.67%, 5.17%, and 12.29% respectively, continuing to increase.

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

• Construction in progress has changed significantly. During the reporting period, construction in progress was RMB 220 million, up 40.79% from the beginning of the period.

From the perspective of the three expense categories (three fees), the following should be重点关注:

• Administrative expense growth exceeds 20%. During the reporting period, administrative expenses were RMB 60 million, up 29.83%.

• Administrative expense growth exceeds revenue growth. During the reporting period, administrative expenses increased by 29.83% year over year, while operating revenue increased by 13.33% year over year; the growth rate of administrative expenses is higher than that of operating revenue.

Click Jurun Photoelectric’s hawk-eye alert to view the latest alert details and a visual preview of the financial report.

Introduction to Sina Finance Listed Company Financial Report Hawk-Eye Alert: The listed company financial report hawk-eye alert is a specialized intelligent analytical system for professional analysis of listed company financial reports. Hawk-eye alert brings together a large number of authoritative financial experts from accounting firms and listed companies, and tracks and interprets the latest financial reports of listed companies across multiple dimensions such as corporate earnings growth, earnings quality, funding pressure and safety, and operating efficiency. It highlights potentially existing financial risk points in the form of graphics and text. It provides professional, efficient, and convenient technical solutions for identifying and issuing alerts on financial risks of listed companies for financial institutions, listed companies, and regulatory authorities.

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Responsible editor: Xiao Lang Express News