Eagle Eye Warning: Sanhuan Group's Sales Gross Profit Margin Declines

Sina Finance Listed Companies Research Institute | Financial Report HawkEye Early Warning

On March 27, Huanhuan Group released its 2025 annual report.

The report shows that the company’s full-year operating revenue in 2025 was RMB 9.007 billion, up 22.13% year over year; net profit attributable to the parent company was RMB 2.618 billion, up 19.54% year over year; net profit after deducting non-recurring gains and losses attributable to the parent company was RMB 2.249 billion, up 16.39% year over year; basic earnings per share were RMB 1.37 per share.

Since going public in November 2014, the company has issued cash dividends 11 times, with cumulative cash dividends already implemented totaling RMB 4.803 billion. The announcement shows that the company plans to distribute cash dividends of RMB 4.5 per 10 shares to all shareholders (including tax).

The listed-company financial report HawkEye early warning system conducts intelligent quantitative analysis of Huanhuan Group’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 9.007 billion, up 22.13% year over year; net profit was RMB 2.617 billion, up 19.48% year over year; net cash flow from operating activities was RMB 2.878 billion, up 19.74% year over year.

II. Profitability

During the reporting period, the company’s gross margin was 42.14%, down 1.97% year over year; net profit margin was 29.05%, down 2.17% year over year; return on equity (weighted) was 12.62%, up 9.74% year over year.

Based on the company’s operating performance, earnings should particularly focus on:

• Sales gross margin declining. During the reporting period, the sales gross margin was 42.14%, down 1.97% year over year.

III. Funding Pressure and Safety

During the reporting period, the company’s asset-liability ratio was 18.27%, up 8.05% year over year; current ratio was 3.76, quick ratio was 3.07; total debt was RMB 1.687 billion, of which short-term debt was RMB 1.662 billion, and short-term debt as a proportion of total debt was 98.52%.

From the perspective of short-term funding pressure, attention should particularly be paid to:

• Cash ratio continuing to decline. In the last three annual reports, the cash ratio was 3.15, 2.92, and 2.18 respectively, continuously declining.

From the perspective of fund management, attention should particularly be paid to:

• Prepaid accounts/ current assets ratio continuing to rise. In the last three annual reports, the prepaid accounts/ current assets ratio was 0.41%, 0.46%, and 0.58% respectively, continuously increasing.

• Accounts payable notes fluctuate significantly. During the reporting period, accounts payable notes were RMB 1.12 billion, with a period-beginning change rate of 114.62%.

IV. Operating Efficiency

During the reporting period, the company’s accounts receivable turnover ratio was 4.47, up 5.99% year over year; inventory turnover ratio was 2.28, up 6.65% year over year; total asset turnover ratio was 0.36, up 10.8% year over year.

From the perspective of operating assets, attention should particularly be paid to:

• Notes receivable continuing to rise. In the last three annual reports, the notes receivable/ current assets ratio was 4.1%, 4.72%, and 5.77% respectively, continuously increasing; the ratio of received other cash related to operating activities/ notes receivable was 140.3%, 94.04%, and 61.16% respectively, continuously declining.

• Accounts receivable/ total assets proportion continues to increase. In the last three annual reports, the accounts receivable/ total assets ratio was 7.45%, 7.83%, and 8.15% respectively, continuously increasing.

From the perspective of long-term assets, attention should particularly be paid to:

• Other non-current assets make up a high proportion. During the reporting period, the ratio of other non-current assets/ total assets was 22.2%.

• Other non-current assets fluctuate significantly. During the reporting period, other non-current assets were RMB 5.88 billion, up 98.73% from the beginning of the period.

Click Huanhuan Group HawkEye early warning to view the latest details of the alerts and a visual preview of the financial report.

Sina Finance listed-company financial report HawkEye early warning introduction: Listed-company financial report HawkEye early warning is an intelligent professional analysis system for listed-company financial reports. HawkEye early warning gathers a large number of authoritative financial experts, such as accounting firms and listed companies, and tracks and interprets the latest financial reports of listed companies across multiple dimensions including company performance growth, earnings quality, funding pressure and safety, and operating efficiency, and uses text and image formats to highlight potential financial risk points. It provides professional, efficient, and convenient technological solutions for financial institutions, listed companies, regulatory authorities, and others to identify and issue early warnings for financial risks of listed companies.

HawkEye early warning entry: Sina Finance APP-Quotes-Data Center-HawkEye Early Warning or Sina Finance APP-Individual Stock Quote Page-Finance-HawkEye Early Warning

Disclaimer: The market carries risk; investment requires caution. This article is automatically published based on third-party databases and does not represent Sina Finance’s position. Any information appearing in this article is for reference only and does not constitute personal investment advice. If there are discrepancies, please refer to the actual announcements. If you have any questions, please contact biz@staff.sina.com.cn.