Eagle Eye Warning: Tongxingbao accounts receivable growth rate exceeds revenue growth rate

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

On March 28, Tongxingbao released its 2025 annual report. The audit opinion is a standard unqualified audit opinion.

The report shows that the company’s operating revenue for the full year of 2025 was RMB 1.068 billion, up 19.24% year over year; net profit attributable to shareholders was RMB 221 million, up 5.39%; net profit attributable to shareholders after deducting non-recurring items was RMB 216 million, up 8.16%; basic earnings per share were RMB 0.3809 per share.

Since listing in August 2022, the company has issued cash dividends 4 times, with total cash dividends implemented of RMB 411 million. The announcement shows that the company plans to distribute cash dividends of RMB 1.00 for every 10 shares to all shareholders (including tax).

The listed-company financial report eagle-eye early warning system conducts intelligent quantitative analysis of Tongxingbao’s 2025 annual report across four major dimensions: performance quality, profitability, capital pressure and safety, and operational efficiency.

I. Performance Quality

In the reporting period, the company’s revenue was RMB 1.068 billion, up 19.24%; net profit was RMB 248 million, up 8.12%; net cash flow from operating activities was RMB 458 million, up 342.12%.

From the overall performance perspective, what needs special attention:

• The growth rate of net profit attributable to shareholders has been continuously declining. In the last three annual reports, the year-over-year changes in net profit attributable to shareholders were 26.66%, 9.81%, and 5.4% respectively, with the downward trend continuing.

• The growth rate of net profit attributable to shareholders after deducting non-recurring items has been continuously declining. In the last three annual reports, the year-over-year changes in net profit attributable to shareholders after deducting non-recurring items were 29.71%, 10.44%, and 8.16% respectively, with the downward trend continuing.

From the quality of operating assets, what needs special attention:

• The growth rate of accounts receivable is higher than the growth rate of operating revenue. In the reporting period, accounts receivable increased by 29.99% compared with the beginning of the period, operating revenue grew by 19.24% year over year, and the growth rate of accounts receivable is higher than that of operating revenue.

• The growth rate of operating revenue has been steadily declining, while the growth rate of accounts receivable has been steadily increasing. In the last three annual reports, operating revenue year-over-year changes were 24.2%, 20.75%, and 19.24%, continuing to decline; accounts receivable changes vs. the beginning of the period were 7.67%, 29.06%, and 29.99%, continuing to increase.

• The ratio of accounts receivable to operating revenue has been continuously increasing. In the last three annual reports, the ratio of accounts receivable to operating revenue was 19.91%, 21.28%, and 23.2% respectively, continuing to rise.

II. Profitability

In the reporting period, the company’s gross margin was 43.97%, down 2.26% year over year; net profit margin was 23.2%, down 9.32% year over year; return on net assets (weighted) was 8.03%, up 1.52% year over year.

From the company’s operating end, what needs special attention regarding returns:

• The gross margin on sales has been continuously declining. In the last three annual reports, the gross margin on sales was 46.96%, 44.99%, and 43.97% respectively, with the downward trend continuing.

• The net profit margin on sales has been continuously declining. In the last three annual reports, the net profit margin on sales was 28.23%, 25.58%, and 23.2% respectively, with the downward trend continuing.

From the perspective of customer concentration and minority shareholders, what needs special attention:

• The revenue share from the top five customers is relatively large. In the reporting period, the ratio of sales revenue from the top five customers / total sales revenue was 60.77%, indicating that the customer base is overly concentrated.

III. Capital Pressure and Safety

In the reporting period, the company’s asset-liability ratio was 51.52%, up 4.57% year over year; the current ratio was 1.41, and the quick ratio was 1.38; total debt was RMB 49.2844 million, of which short-term debt was RMB 49.2844 million; the ratio of short-term debt to total debt was 100%.

From the perspective of long-term capital pressure, what needs special attention:

• The ratio of total debt to net assets has been continuously rising. In the last three annual reports, the ratio of total debt / net assets was 0.44%, 0.53%, and 1.11% respectively, continuing to increase.

• The cash coverage ratio of total debt is gradually getting smaller. In the last three annual reports, the ratio of broad monetary funds / total debt was 269.44, 163.69, and 111.92 respectively, continuing to decline.

From the perspective of capital management and control, what needs special attention:

• Other receivables have changed significantly. In the reporting period, other receivables were RMB 300 million, with a period-over-period change rate of 41.19% vs. the beginning of the period.

• Accounts payable notes have changed significantly. In the reporting period, accounts payable notes were RMB 40 million, with a period-over-period change rate of 878.01% vs. the beginning of the period.

From the perspective of capital coordination, what needs special attention:

• The company’s capital is relatively abundant. In the reporting period, the company’s working capital needs were -RMB 2.27 billion, working capital was RMB 1.23 billion, and both operating activities and investing and financing activities brought the company relatively ample funding. The company’s cash payment capability was RMB 3.5 billion; the efficiency of capital use is worth further attention.

IV. Operational Efficiency

In the reporting period, the company’s accounts receivable turnover was 4.87, down 7.99% year over year; inventory turnover was 5.84, up 8.5%; total asset turnover was 0.19, up 15.4%.

From operating assets, what needs special attention:

• The proportion of accounts receivable to total assets has been continuously increasing. In the last three annual reports, the ratio of accounts receivable to total assets was 2.67%, 3.45%, and 4.2% respectively, continuing to rise.

• The ratio of inventory to total assets has been continuously increasing. In the last three annual reports, the ratio of inventory / total assets was 1.55%, 1.77%, and 1.82% respectively, continuing to rise.

From long-term assets, what needs special attention:

• The proportion of other non-current assets is relatively high. In the reporting period, the ratio of other non-current assets / total assets was 17.49%.

Click Tongxingbao Eagle Eye Early Warning to view the latest early warning details and a visual preview of the financial report.

Introduction to Sina Finance Listed Companies’ Financial Report Eagle Eye Early Warning: The listed-companies financial report eagle-eye early warning is an intelligent, specialized analysis system for listed-company financial reports. Eagle Eye Early Warning tracks and interprets the latest financial reports of listed companies across multiple dimensions—including company performance growth, earnings quality, capital pressure and safety, and operational efficiency—by gathering a large number of authoritative financial experts such as accounting firms and listed companies. It also uses text and graphics to flag potential financial risk points. It provides technical solutions for professional, efficient, and convenient identification and early warning of financial risks for financial institutions, listed companies, regulatory authorities, and more.

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