Eagle Eye Warning: Boteng Co., Ltd.'s sales gross profit margin is quite volatile.

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

On April 4, Boten Shares released its 2025 annual report. The audit opinion was a standard unqualified audit opinion.

The report shows that the company’s operating revenue for the full year of 2025 was RMB 3.42 billion, up 13.54% year over year; net profit attributable to shareholders was RMB 96.3399 million, up 133.48% year over year; net profit after excluding non-recurring items attributable to shareholders was RMB 58.7672 million, up 121.59% year over year; and basic earnings per share were RMB 0.18 per share.

Since the company went public in January 2014, it has delivered cash dividends 11 times, with total implemented cash dividends of RMB 1.19B. The announcement shows that the company plans to distribute a cash dividend of RMB 0.9 per every 10 shares to all shareholders (including tax).

The listed-company financial report hawk-eye early warning system conducts intelligent quantitative analysis of Boten Shares’ 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 3.42 billion, up 13.54% year over year; net profit was RMB 30.3875 million, up 108.3% year over year; and net cash flow from operating activities was RMB 757 million, up 86.67% year over year.

From an overall performance perspective, you need to pay close attention to:

• Net profit fluctuated considerably. In the last three annual reports, net profit was RMB 180 million, -RMB 370 million, and RMB 30 million, respectively. The year-over-year changes were -90.94%, -308.52%, and 108.3%, respectively. Net profit has fluctuated significantly.

| Item | 20231231 | 20241231 | 20251231 | | Net profit (yuan) | 176M | -3.66亿 | 30.39M | | Net profit growth rate | -90.94% | -308.52% | 108.3% |

II. Profitability

During the reporting period, the company’s gross margin was 29.94%, up 21.76% year over year; net profit margin was 0.89%, up 107.31% year over year; and return on equity (weighted) was 1.83%, up 134.79% year over year.

Combining the company’s operations, you need to pay close attention to:

• The gross margin on sales fluctuated significantly. In the last three annual reports, the gross margin on sales was 40.69%, 24.59%, and 29.94%, respectively. The year-over-year changes were -21.69%, -39.57%, and 21.76%, respectively; the gross margin on sales had abnormal fluctuations.

Combining the company’s asset side, you need to pay close attention to:

• The average return on net assets over the recent three years is below 7%. During the reporting period, the weighted average return on net assets was 1.83%, and the weighted average return on net assets over the most recent three accounting years averaged below 7%.

| Item | 20231231 | 20241231 | 20251231 | | Return on net assets | 4.6% | -5.26% | 1.83% | | Return on net assets growth rate | -88.59% | -214.35% | 134.79% |

• Return on invested capital is below 7%. During the reporting period, the company’s return on invested capital was 2.1%, and the average value across the three reporting periods was below 7%.

| Item | 20231231 | 20241231 | 20251231 | | Return on invested capital | 3.5% | -3.02% | 2.1% |

From non-recurring items, you need to pay close attention to:

• The proportion of non-recurring gains is relatively high. During the reporting period, the ratio of non-recurring gains to net profit was 37.2%. (Note: non-recurring gains = net investment gains + net gains from fair value changes + non-operating income + losses from disposal of non-current assets).

| Item | 20231231 | 20241231 | 20251231 | | Non-recurring gains (yuan) | -666.3k | -13.04M | 11.3M | | Net profit (yuan) | 176M | -366M | 30.39M | | Non-recurring gains / net profit | 0.18% | 3.56% | 37.2% |

From the perspective of concentration of counterparties and minority shareholders, you need to pay close attention to:

• Loss attributable to minority shareholders, while net profit attributable to shareholders is positive. During the reporting period, the loss attributable to minority shareholders was -RMB 70 million, while net profit attributable to shareholders was RMB 100 million.

| Item | 20231231 | 20241231 | 20251231 | | Loss attributable to minority shareholders (yuan) | -91.34M | -78.24M | -65.95M | | Net profit attributable to shareholders (yuan) | 267M | -288M | 96.34M |

III. Capital Pressure and Safety

During the reporting period, the company’s asset-liability ratio was 35.7%, down 7.56% year over year; the current ratio was 1.82, and the quick ratio was 1.39; total debt was RMB 30.39M, of which short-term debt was RMB 176M; and short-term debt as a proportion of total debt was 63.33%.

From the overall financial condition, you need to pay close attention to:

• The current ratio continues to decline. In the last three annual reports, the current ratio was 2.63, 1.9, and 1.82 respectively; the company’s short-term debt-paying capacity has been weakening.

From short-term capital pressure, you need to pay close attention to:

• The ratio of short-term to long-term debt increased significantly. During the reporting period, the ratio of short-term debt to long-term debt increased significantly to 0.49.

• The cash ratio continues to decline. In the last three annual reports, the cash ratio was 1.01, 0.83, and 0.79 respectively, showing a continuous decline.

From the perspective of capital management and control, you need to pay close attention to:

• The ratio of interest income to monetary funds is less than 1.5%. During the reporting period, monetary funds were RMB 1.13 billion, short-term debt was RMB 0.5 billion, and the company’s average ratio of interest income to monetary funds was 0.696%, which is below 1.5%.

• 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 49.47%, and the ratio of interest expense to net profit was 166.11%; interest expense has a significant impact on the company’s operating performance.

• The growth rate of advances to suppliers exceeds the growth rate of operating costs. During the reporting period, advances to suppliers increased by 5.99% compared with the beginning of the period; operating costs grew by 5.49% year over year; and the growth rate of advances to suppliers exceeded that of operating costs.

IV. Operating Efficiency

During the reporting period, the company’s accounts receivable turnover rate was 4.39, up 7.28%; inventory turnover was 3.11, up 1.84%; and total asset turnover was 0.39, up 18.99%.

From operating assets, you need to pay close attention to:

• The ratio of inventory to total assets continues to grow. In the last three annual reports, the ratio of inventory to total assets was 7.64%, 8.75%, and 9.01%, respectively, showing continuous growth.

From the perspective of the three expense categories, you need to pay close attention to:

• Finance expenses changed significantly. During the reporting period, finance expenses were RMB 70 million, up 127.48%.

Click Boten Shares’ hawk-eye early warning to view the latest details and a visual preview of the financial report.

Introduction to Sina Finance’s listed-company financial report hawk-eye early warning: The listed-company financial report hawk-eye early warning is an intelligent professional analysis system for listed-company financial reports. Through collecting a large number of authoritative financial experts such as accounting firms and listed companies, hawk-eye early warning tracks and interprets 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 provides alerts to potentially existing financial risk points in the form of diagrams and text. It offers technical solution packages for professional, efficient, and convenient identification and early warning of financial risks in listed companies for financial institutions, listed companies, regulatory authorities, and more.

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