Eagle Eye Warning: Parallel Technology's accounts receivable growth rate exceeds revenue growth rate

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

On April 3, Parallel Technology released its 2025 annual report, and the audit opinion was a standard unqualified audit opinion.

The report shows that the company’s full-year operating revenue for 2025 was RMB 1.11 billion, up 69.56%; net profit attributable to shareholders was RMB 12.218 million, up 1.34%; net profit after deducting non-recurring gains and losses attributable to shareholders was RMB -74,600, down 101.51% year over year; and basic earnings per share were RMB 0.21 per share.

Since listing in October 2023, the company has made 0 cash dividends, with total cash dividends implemented to date of RMB 0.

The Listed Company Earnings Hawk-Eye Early Warning system conducts intelligent quantitative analysis of Parallel Technology’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 1.11 billion, up 69.56%; net profit was RMB 13.0923 million, up 1.73%; and net cash flow from operating activities was RMB 245 million, up 100.46%.

From the overall performance perspective, the following should be given priority:

• A sharp decline in net profit after deducting non-recurring items. During the reporting period, net profit after deducting non-recurring gains and losses attributable to shareholders was RMB -75,000, down sharply 101.51% year over year.

| Item | 20231231 | 20241231 | 20251231 | | Net profit after deducting non-recurring items attributable to shareholders (RMB) | - | 4.958 million | -0.746 million | | Growth rate of net profit after deducting non-recurring items attributable to shareholders | - | 105.71% | -101.51% |

• Large discrepancy in changes between operating revenue and net profit. During the reporting period, operating revenue increased 69.56% year over year, while net profit increased 1.73% year over year; the changes in operating revenue and net profit differed significantly.

| Item | 20231231 | 20241231 | 20251231 | | Operating revenue (RMB) | - | 655 million | 1.11 billion | | Net profit (RMB) | - | 12.8701 million | 13.0923 million | | Growth rate of operating revenue | - | 32.07% | 69.56% | | Growth rate of net profit | - | 116.56% | 1.73% |

• Net profit is positive, but net profit after deducting non-recurring items is negative. During the reporting period, net profit was 0.1 billion yuan, while net profit after deducting non-recurring gains and losses was RMB -75,000.

| Item | 20231231 | 20241231 | 20251231 | | Net profit (RMB) | - | 12.8701 million | 13.0923 million | | Net profit after deducting non-recurring items attributable to shareholders (RMB) | - | 4.958 million | -0.746 million |

From the matching of income, cost, and period expenses, the following should be given priority:

• Large difference in the movement of operating revenue and operating costs. During the reporting period, operating revenue changed 69.56% year over year, while operating costs changed 91.38% year over year; the differences between the changes in income and costs were relatively large.

| Item | 20231231 | 20241231 | 20251231 | | Operating revenue (RMB) | - | 655 million | 1.11 billion | | Operating cost (RMB) | - | 439 million | 841 million | | Growth rate of operating revenue | - | 32.07% | 69.56% | | Growth rate of operating cost | - | 19.21% | 91.38% |

• The change in selling expenses differs greatly from the change in operating revenue. During the reporting period, operating revenue changed 69.56% year over year, while selling expenses changed 7.24% year over year; the change in selling expenses differed significantly from the change in operating revenue.

| Item | 20231231 | 20241231 | 20251231 | | Operating revenue (RMB) | - | 655 million | 1.11 billion | | Selling expenses (RMB) | - | 110 million | 118 million | | Growth rate of operating revenue | - | 32.07% | 69.56% | | Growth rate of selling expenses | - | -3.34% | 7.24% |

In light of the quality of operating assets, the following should be given priority:

• The growth rate of notes receivable is higher than the growth rate of operating revenue. During the reporting period, notes receivable increased 111.47% from the beginning of the period, while operating revenue grew 69.56% year over year; the growth rate of notes receivable is higher than the growth rate of operating revenue.

| Item | 20231231 | 20241231 | 20251231 | | Growth rate of operating revenue | - | 32.07% | 69.56% | | Growth rate of notes receivable from the beginning of the period | - | - | 111.47% |

• The growth rate of accounts receivable is higher than the growth rate of operating revenue. During the reporting period, accounts receivable increased 169.62% from the beginning of the period, while operating revenue grew 69.56% year over year; the growth rate of accounts receivable is higher than the growth rate of operating revenue.

| Item | 20231231 | 20241231 | 20251231 | | Growth rate of operating revenue | - | 32.07% | 69.56% | | Growth rate of accounts receivable from the beginning of the period | - | - | 169.62% |

• The growth rate of inventory is higher than the growth rate of operating revenue. During the reporting period, inventory increased 70.88% from the beginning of the period, while operating revenue grew 69.56% year over year; the growth rate of inventory is higher than the growth rate of operating revenue.

| Item | 20231231 | 20241231 | 20251231 | | Growth rate of inventory from the beginning of the period | - | - | 70.88% | | Growth rate of operating revenue | - | 32.07% | 69.56% |

II. Profitability

During the reporting period, the company’s gross margin was 24.23%, down 26.28% year over year; net profit margin was 1.18%, down 40.01% year over year; and return on equity (weighted) was 3.08%, down 12.25%.

Combining the company’s operating side and considering returns, the following should be given priority:

• Sales gross margin fell sharply. During the reporting period, sales gross margin was 24.23%, down sharply 26.28% year over year.

| Item | 20231231 | 20241231 | 20251231 | | Sales gross margin | - | 32.87% | 24.23% | | Growth rate of sales gross margin | - | 28.25% | -26.28% |

III. Capital Pressure and Safety

During the reporting period, the company’s asset-liability ratio was 79.3%, up 3.62% year over year; the current ratio was 0.72, and the quick ratio was 0.62; total debt was RMB 874 million, of which short-term debt was RMB 454 million, and short-term debt as a percentage of total debt was 51.9%.

In terms of long-term funding pressure, the following should be given priority:

• Short-term debt can be covered by broad money/cash funds, but long-term debt cannot be covered. During the reporting period, the ratio of broad money/cash funds to total debt was 0.48, and broad money/cash funds were lower than total debt.

From the perspective of capital management, the following should be given priority:

• The ratio of interest income to money/cash funds is less than 1.5%. During the reporting period, money/cash funds were RMB 310 million, and short-term debt was RMB 450 million; the company’s average ratio of interest income to money/cash funds was 0.566%, which is below 1.5%.

| Item | 20231231 | 20241231 | 20251231 | | Money/cash funds (RMB) | - | 286 million | 310 million | | Short-term debt (RMB) | - | 355 million | 454 million | | Interest income / average money/cash funds | - | - | 0.57% |

• The ratio of total debt to total liabilities is greater than 20%, and the ratio of interest expense to net profit is greater than 30%. During the reporting period, the ratio of total debt to total liabilities was 56.5%, and the ratio of interest expense to net profit was 239.14%; interest expense has a relatively large impact on the company’s operating performance.

| Item | 20231231 | 20241231 | 20251231 | | Total debt / total liabilities | - | 52.78% | 56.5% | | Interest expense / net profit | - | 133.96% | 239.14% |

• Prepayments increased significantly. During the reporting period, prepayments were RMB 2.894 million, with a change rate of 38.67% from the beginning of the period.

• Other receivables increased significantly. During the reporting period, other receivables were RMB 0.2 billion, with a change rate of 171.8% from the beginning of the period.

IV. Operating Efficiency

During the reporting period, the company’s accounts receivable turnover ratio was 6.58, down 31.96% year over year; inventory turnover ratio was 8.79, up 57.92%; and total asset turnover ratio was 0.59, up 20.52%.

In terms of long-term assets, the following should be given priority:

• Construction in progress changed significantly. During the reporting period, construction in progress was RMB 110 million, up 209.04% from the beginning of the period.

• Other non-current assets changed significantly. During the reporting period, other non-current assets were RMB 0.3 billion, up 5066.03% from the beginning of the period.

From the perspective of the three expense categories (three-fee), the following should be given priority:

• Financial expenses changed significantly. During the reporting period, financial expenses were RMB 0.3 billion, up 110.21% year over year.

| Item | 20231231 | 20241231 | 20251231 | | Financial expenses (RMB) | - | 14.6145 million | 30.7204 million | | Growth rate of financial expenses | - | 96.56% | 110.21% |

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Introduction to Sina Finance Listed Company Financial Report Hawk-Eye Early Warning: Listed Company Financial Report Hawk-Eye Early Warning is an intelligent professional analysis system for listed company financial reports. Hawk-Eye Early Warning aggregates a large number of authoritative financial experts from accounting firms and listed companies to track and interpret 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 it highlights potentially existing financial risk points in the form of text and graphics. It provides technical solution packages for financial institutions, listed companies, regulatory authorities, and others to identify and issue warnings on financial risks of listed companies in a professional, efficient, and convenient manner.

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Responsible editor: Xiao Lang Express