Eagle Eye Warning: Maoye Commercial Revenue Declines

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

On March 28, Maoye Commercial released its 2025 annual report. The audit opinion was a standard unqualified audit opinion.

The report shows that the company’s operating revenue for all of 2025 was RMB 2.367 billion, down 12.84% year over year; net profit attributable to shareholders was RMB -246 million, down 761.74% year over year; net profit after deducting non-recurring gains and losses attributable to shareholders was RMB -86.7952 million, down 184.97% year over year; and basic earnings per share were RMB -0.1419 per share.

Since the company’s listing in February 1994, it has paid cash dividends 22 times, with cumulative implemented cash dividends of RMB 3.039 billion.

The listed-company financial report eagle-eye early warning system conducts intelligent quantitative analysis of Maoye Commercial’s 2025 annual report from 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 2.367 billion, down 12.84% year over year; net profit was RMB -264 million, down 985.54% year over year; and net cash flow from operating activities was RMB 389 million, down 63.04% year over year.

From the overall performance perspective, key points to focus on:

• Operating revenue declined. During the reporting period, operating revenue was RMB 2.37 billion, down 12.84% year over year.

• Net profit attributable to shareholders fell significantly. During the reporting period, net profit attributable to shareholders was RMB -250 million, down significantly by 761.74% year over year.

| Item | 20231231 | 20241231 | 20251231 | | Net profit attributable to shareholders (RMB) | 50.7495 million | 37.1466 million | -246 million | | Net profit attributable to shareholders growth rate | -85.15% | -26.63% | -761.74% |

• Net profit after deducting non-recurring gains and losses attributable to shareholders fell significantly. During the reporting period, net profit after deducting non-recurring gains and losses attributable to shareholders was RMB -90 million, down significantly by 184.97% year over year.

| Item | 20231231 | 20241231 | 20251231 | | Non-recurring gains and losses attributable profit (RMB) | -36.2982 million | -30.4575 million | -86.7952 million | | Growth rate of non-recurring gains and losses attributable profit | -247.76% | 16.09% | -184.97% |

• For the first time in the past three years, net profit turned into a loss. During the reporting period, net profit was negative, at RMB -260 million.

| Item | 20231231 | 20241231 | 20251231 | | Net profit (RMB) | 44.2831 million | 29.835 million | -264 million |

From the revenue-cost and period expense matching perspective, key points to focus on:

• Operating revenue and taxes and surcharges moved in opposite directions. During the reporting period, operating revenue changed by -12.84% year over year, while taxes and surcharges changed by 23.88% year over year; operating revenue and taxes and surcharges diverged.

II. Profitability

During the reporting period, the company’s gross margin was 62.26%, down 0.01% year over year; net profit margin was -11.16%, down 1115.98% year over year; and return on net assets (weighted) was -3.59%, down 777.36% year over year.

In conjunction with the company’s operating side, key points to focus on for earnings include:

• Gross sales margin declined. During the reporting period, gross sales margin was 62.26%, down 0.01% year over year.

• Sales net profit margin continued to decline. In the last three annual reports, the sales net profit margin was 1.4%, 1.1%, and -11.16% respectively, with the trend continuing downward.

| Item | 20231231 | 20241231 | 20251231 | | Sales net profit margin | 1.4% | 1.1% | -11.16% | | Sales net profit margin growth rate | -85.69% | -21.26% | -1115.98% |

In conjunction with the company’s asset side, key points to focus on for returns include:

• Average return on net assets over the past three years is below 7%. During the reporting period, the weighted average return on net assets was -3.59%; the weighted average return on net assets over the most recent three accounting years is on average below 7%.

| Item | 20231231 | 20241231 | 20251231 | | Return on net assets | 0.72% | 0.53% | -3.59% | | Return on net assets growth rate | -85% | -26.39% | -777.36% |

• Return on net assets continues to decline. In the last three annual reports, the weighted average return on net assets was 0.72%, 0.53%, and -3.59% respectively, with the trend continuing downward.

| Item | 20231231 | 20241231 | 20251231 | | Return on net assets | 0.72% | 0.53% | -3.59% | | Return on net assets growth rate | -85% | -26.39% | -777.36% |

• Return on invested capital is below 7%. During the reporting period, the company’s return on invested capital was 0.26%, and the average value across the three reporting periods was below 7%.

From unconventional gains and losses, key points to focus on include:

• Unconventional gains account for a high proportion. During the reporting period, the ratio of unconventional gains/net profit was 73.6%. (Note: Unconventional gains = investment net gains + net gains from changes in fair value + non-operating income + losses from disposal of non-current assets).

| Item | 20231231 | 20241231 | 20251231 | | Unconventional gains (RMB) | 42.3204 million | 82.8195 million | -194 million | | Net profit (RMB) | 44.2831 million | 29.835 million | -264 million | | Unconventional gains/net profit | 141.85% | 277.59% | 73.6% |

From dimensions such as customer/supplier concentration and minority shareholders, key points to focus on include:

• Purchases from the top five suppliers account for a large share. During the reporting period, the ratio of purchases from the top five suppliers/purchases total was 66.11%, so be alert to the risk of excessive reliance on suppliers.

III. Funding Pressure and Safety

During the reporting period, the company’s asset-liability ratio was 58.58%, down 2.09% year over year; the current ratio was 0.42, and the quick ratio was 0.19; total debt was RMB 4.808 billion, of which short-term debt was RMB 1.924 billion, and short-term debt as a share of total debt was 40.02%.

In terms of short-term funding pressure, key points to focus on include:

• Large short-term debt and a shortage gap in existing funds. During the reporting period, broad money/cash and cash equivalents was RMB 340 million, short-term debt was RMB 1.92 billion, the ratio of broad money/cash and cash equivalents to short-term debt was 0.18, and broad money/cash and cash equivalents was lower than short-term debt.

• Short-term debt pressure is high, and the capital chain is under strain. During the reporting period, broad money/cash and cash equivalents was RMB 340 million, short-term debt was RMB 1.92 billion, net cash flow from operating activities was RMB 390 million; there is a difference between short-term debt, financial expenses, and cash and cash equivalents and net cash flow from operating activities.

• Cash ratio is less than 0.25. During the reporting period, the cash ratio was 0.05, which is lower than 0.25.

In terms of long-term funding pressure, key points to focus on include:

• The cash coverage ratio of total debt is gradually getting smaller. In the last three annual reports, the ratio of broad money/cash and cash equivalents/total debt was 0.1, 0.06, and 0.06 respectively, continuing to decline.

In terms of capital coordination, key points to focus on include:

• Capital coordination needs improvement. During the reporting period, the company’s working capital demand was -1.96 billion yuan, working capital was -2.69 billion yuan; cash flow generated by operating activities cannot fully cover long-term asset investments, and cash payment capacity was -740 million yuan.

IV. Operating Efficiency

During the reporting period, the company’s accounts receivable turnover ratio was 65.23, up 8.97%; inventory turnover ratio was 0.82, down 12.51%; and total asset turnover ratio was 0.13, down 7.28% year over year.

In terms of operating assets, key points to focus on include:

• Inventory turnover continues to decline. In the last three annual reports, inventory turnover ratios were 1.16, 0.93, and 0.82 respectively, indicating weakening inventory turnover capability.

• The inventory/total assets ratio continues to grow. In the last three annual reports, the inventory/total assets ratio was 5.55%, 5.84%, and 6.25% respectively, continuing to rise.

In terms of long-term assets, key points to focus on include:

• Total asset turnover continues to decline. In the last three annual reports, the total asset turnover ratios were 0.16, 0.14, and 0.13 respectively, indicating weakening total asset turnover capability.

• Unit fixed-asset revenue productivity declines year by year. In the last three annual reports, the ratio of operating revenue/fixed-asset original value was 0.89, 0.81, and 0.76 respectively, continuing to decline.

From the three-expense (three-fee) dimensions, key points to focus on include:

• The ratio of selling expenses/operating revenue continues to rise. In the last three annual reports, the ratio of selling expenses/operating revenue was 28.9%, 32.67%, and 34.7% respectively, continuing to rise.

Click Maoye Commercial’s Eagle Eye Alert to view the latest alert details and a visual preview of the financial report.

Sina Finance Listed Company Financial Report Eagle Eye Alert introduction: The listed company financial report eagle eye early warning is an intelligent, specialized analysis system for listed company financial reports. The eagle eye alert system gathers a large group of authoritative financial experts, including accounting firms and listed companies, to track and interpret the latest financial reports of listed companies from multiple dimensions such as company earnings growth, earnings quality, funding pressure and safety, and operating efficiency. It also uses text and graphics to highlight possible financial risk points. It provides professional, efficient, and convenient technical solution for identifying and alerting financial risks of listed companies for financial institutions, listed companies, regulatory authorities, and others.

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Responsible editor: Xiao Lang Express