Eagle Eye Warning: Guorui Technology's Operating Revenue Declines

Sina Finance Listed Companies Research Institute | Financial Report Hawk-Eye Early Warning

On April 3, Guorui Technology released its 2025 annual report. The audit opinion was a standard unqualified audit opinion.

The report shows that the company’s operating revenue for 2025 was RMB 277 million, down 0.24% year over year; net profit attributable to the parent was -RMB 55.0224 million, down 44.53% year over year; net profit after deducting non-recurring items attributable to the parent was -RMB 69.7122 million, down 120.88% year over year; and basic earnings per share were -0.19 yuan/share.

Since listing in January 2017, the company has delivered cash dividends 5 times, with cumulative implemented cash dividends of RMB 133 million.

The listed-company financial report Hawk-Eye early warning system conducts intelligent quantitative analysis of Guorui Technology’s 2025 annual report from four major dimensions: performance quality, profitability, capital pressure and safety, and operating efficiency.

I. Performance Quality

During the reporting period, the company’s operating revenue was RMB 277 million, down 0.24% year over year; net profit was -RMB 55.8421 million, down 41.83% year over year; and net cash flow from operating activities was RMB 33.0017 million, up 5,021.04%.

From the overall performance perspective, it is necessary to pay key attention to:

• Operating revenue declined. During the reporting period, operating revenue was RMB 280 million, down 0.24% year over year.

• Net profit attributable to the parent fell sharply. During the reporting period, net profit attributable to the parent was -0.6 billion yuan, down 44.53% year over year.

| Item | 20231231 | 20241231 | 20251231 | | Net profit attributable to the parent (yuan) | -23.1347 million | -38.0708 million | -55.0224 million | | Net profit attributable to the parent growth rate | -4872.33% | -64.56% | -44.53% |

• Net profit attributable to the parent after deducting non-recurring items fell sharply. During the reporting period, net profit after deducting non-recurring items attributable to the parent was -0.7 billion yuan, down 120.89% year over year.

| Item | 20231231 | 20241231 | 20251231 | | Non-recurring-item net profit attributable to the parent (yuan) | -45.8813 million | -31.5604 million | -69.7122 million | | Non-recurring-item net profit attributable to the parent growth rate | -474.38% | 31.21% | -120.89% |

• Operating profit was negative for three consecutive quarters. During the reporting period, operating profit for the last three quarters was -0.3 billion yuan, -0.2 billion yuan, and -0.3 billion yuan, remaining negative throughout.

| Item | 20250630 | 20250930 | 20251231 | | Operating profit (yuan) | -27.3217 million | -15.5093 million | -28.8662 million |

From the matching of revenue, cost, and period expenses, it is necessary to pay key attention to:

• The change in selling expenses differs greatly from the change in operating revenue. During the reporting period, operating revenue year-over-year change was -0.24%, selling expenses year-over-year change was 21.54%, and the change difference between selling expenses and operating revenue was large.

• Operating revenue and taxes and surcharges moved in opposite directions. During the reporting period, operating revenue year-over-year change was -0.24%, taxes and surcharges year-over-year change was 3.59%, and operating revenue and taxes and surcharges moved differently.

Combining cash flow quality, it is necessary to pay key attention to:

• The changes in operating revenue and net cash flow from operating activities diverged. During the reporting period, operating revenue decreased 0.24% year over year, net cash flow from operating activities increased 5,021.04% year over year, and operating revenue and net cash flow from operating activities moved differently.

II. Profitability

During the reporting period, the company’s gross margin was 14.6%, down 49.64% year over year; net profit margin was -20.17%, down 42.16% year over year; and return on net assets (weighted) was -5.64%, down 36.56% year over year.

From the company’s operating side, it is necessary to pay key attention to:

• Selling gross margin continued to decline. In the last three annual reports, the selling gross margins were 34.34%, 28.98%, and 14.6% respectively, with a consistently downward trend.

• Selling net profit margin continued to decline. In the last three annual reports, selling net profit margins were -12.92%, -14.19%, and -20.17% respectively, with a consistently downward trend.

| Item | 20231231 | 20241231 | 20251231 | | Selling net profit margin | -12.92% | -14.19% | -20.17% | | Selling net profit margin growth rate | -1952.33% | -9.76% | -42.16% |

From the company’s asset side, it is necessary to pay key attention to:

• The average return on net assets over the most recent three years is below 7%. During the reporting period, the weighted average return on net assets was -5.64%, and the weighted average return on net assets for the most recent three accounting years averaged below 7%.

| Item | 20231231 | 20241231 | 20251231 | | Return on net assets | -2.72% | -4.13% | -5.64% | | Return on net assets growth rate | -5340% | -51.28% | -36.56% |

• Return on net assets continued to decline. In the last three annual reports, the weighted average return on net assets was -2.72%, -4.13%, and -5.64% respectively, with a consistently downward trend.

| Item | 20231231 | 20241231 | 20251231 | | Return on net assets | -2.72% | -4.13% | -5.64% | | Return on net assets growth rate | -5340% | -51.28% | -36.56% |

• Return on invested capital is below 7%. During the reporting period, the company’s return on invested capital was -4.86%, and the average value across the three reporting periods was below 7%.

| Item | 20231231 | 20241231 | 20251231 | | Return on invested capital | -2.22% | -3.55% | -4.86% |

III. Capital Pressure and Safety

During the reporting period, the company’s asset-liability ratio was 16.61%, down 9.31% year over year; the current ratio was 4.35, and the quick ratio was 4.01; total debt was RMB 41.6473 million, of which short-term debt was RMB 41.6473 million. Short-term debt as a proportion of total debt was 100%.

From the perspective of capital management, it is necessary to pay key attention to:

• The ratio of interest income to monetary funds is less than 1.5%. During the reporting period, monetary funds were RMB 430 million, short-term debt was RMB 1.684 million, and the company’s average ratio of interest income to monetary funds was 0.588%, which is below 1.5%.

• Accounts payable bills changed significantly. During the reporting period, accounts payable bills were 0.4 billion yuan, with a change rate of 46.29% compared with the beginning of the period.

• Other payables changed significantly. During the reporting period, other payables were RMB 834,000, with a change rate of 84.67% compared with the beginning of the period.

From the perspective of capital coordination, it is necessary to pay key attention to:

• Free cash flow is negative. In the last three annual reports, free cash flow was -0.8 billion yuan, -0.7 billion yuan, and -2.3 billion yuan respectively, remaining negative throughout.

| Item | 20231231 | 20241231 | 20251231 | | Free cash flow (yuan) | -75.0588 million | -73.5361 million | -226 million |

IV. Operating Efficiency

During the reporting period, the company’s accounts receivable turnover ratio was 0.81, down 8.32% year over year; inventory turnover ratio was 2.25, up 62.66% year over year; and total asset turnover ratio was 0.21, down 10.88% year over year.

From long-term assets, it is necessary to pay key attention to:

• Other non-current assets changed significantly. During the reporting period, other non-current assets were RMB 4.571 million, up 135.23% from the beginning of the period.

From the “three expenses” dimension, it is necessary to pay key attention to:

• Selling expense growth rate exceeds 20%. During the reporting period, selling expenses were 0.1 billion yuan, up 21.54% year over year.

Click Guorui Technology’s Hawk-Eye early warning to view the latest warning details and a visual preview of the financial report.

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