Eagle Eye Warning: Happy Family's Accounts Receivable to Revenue Ratio Continues to Increase

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

On March 26, Huanlejia released its 2025 annual report, and the audit opinion was a standard unqualified (standard) audit opinion.

The report shows that the company’s operating revenue for 2025 was 1.5 billion yuan, down 19.11% year over year; net profit attributable to shareholders was 44.1746 million yuan, down 70.03% year over year; net profit excluding non-recurring items attributable to shareholders was 40.8979 million yuan, down 71.75% year over year; and basic earnings per share were 0.1056 yuan per share.

Since listing in May 2021, the company has paid cash dividends 7 times, with cumulative cash dividends implemented totaling 477 million yuan. The announcement shows that the company plans to distribute cash dividends of 2 yuan for every 10 shares to all shareholders (including tax).

The earnings Hawk-Eye early warning system for listed company financial reports conducts intelligent quantitative analysis of Huanlejia’s 2025 annual report across 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 1.5 billion yuan, down 19.11% year over year; net profit was 44.1746 million yuan, down 70.03% year over year; and net cash flow from operating activities was 88.4938 million yuan, up 46.85% year over year.

From the overall performance perspective, it is necessary to focus on:

• Operating revenue growth has been continuously declining. In the last three annual reports, the year-over-year changes in operating revenue were 20.47%, -3.53%, and -19.11%, respectively, with a continuously downward trend.

• 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 36.85%, -47.06%, and -70.03%, respectively, with a continuously downward trend.

• Growth rate of net profit attributable to shareholders excluding non-recurring items has been continuously declining. In the last three annual reports, the year-over-year changes in net profit attributable to shareholders excluding non-recurring items were 37.15%, -46.67%, and -71.76%, respectively, with a continuously downward trend.

Combining the quality of operating assets, it is necessary to focus on:

• Accounts receivable / operating revenue ratio continues to increase. In the last three annual reports, the accounts receivable / operating revenue ratio was 6.4%, 6.83%, and 8.11%, respectively, showing continuous growth.

Combining the quality of cash flows, it is necessary to focus on:

• Disconnection between operating revenue and net cash flow from operating activities. During the reporting period, operating revenue fell by 19.11% year over year, while net cash flow from operating activities increased by 46.85% year over year, and the movement of operating revenue and net cash flow from operating activities is divergent.

II. Profitability

During the reporting period, the company’s gross margin was 29.59%, down 12.98% year over year; net profit margin was 2.94%, down 62.95% year over year; and return on equity (weighted) was 4.13%, down 65.9% year over year.

Combining the company’s operating performance to assess returns, it is necessary to focus on:

• Gross margin on sales has been continuously declining. In the last three annual reports, gross margin on sales was 38.75%, 34%, and 29.59%, respectively, with a continuously downward trend.

• Sales net profit margin has been continuously declining. In the last three annual reports, sales net profit margin was 14.48%, 7.95%, and 2.94%, respectively, with a continuously downward trend.

Combining the company’s asset side to assess returns, it is necessary to focus on:

• Return on equity has been continuously declining. In the last three annual reports, the weighted average return on equity was 20.04%, 12.11%, and 4.13%, respectively, with a continuously downward trend.

III. Funding Pressure and Safety

During the reporting period, the company’s asset-liability ratio was 45.74%, up 2.09% year over year; the current ratio was 1.23, and the quick ratio was 0.94; total debt was 459 million yuan, of which short-term debt was 413 million yuan, and short-term debt accounted for 90.08% of total debt.

From the overall financial position, it is necessary to focus on:

• Asset-liability ratio continues to increase. In the last three annual reports, the asset-liability ratio was 33.38%, 44.81%, and 45.74%, respectively, showing an increasing trend.

• Current ratio continues to decline. In the last three annual reports, the current ratio was 1.77, 1.26, and 1.23, respectively, indicating weakening short-term solvency.

From long-term funding pressure, it is necessary to focus on:

• The ratio of total debt / net assets continues to rise. In the last three annual reports, the ratio of total debt / net assets was 8.51%, 22.11%, and 33.73%, respectively, showing continuous growth.

• Total debt cash coverage is gradually shrinking. In the last three annual reports, the ratio of broad monetary funds / total debt was 7.16, 2.72, and 1.68, respectively, showing a continuous decline.

From the perspective of capital management, it is necessary to focus on:

• Interest income / monetary funds ratio is less than 1.5%. During the reporting period, monetary funds were 530 million yuan, short-term debt was 300 million yuan, and the average ratio of interest income / monetary funds was 0.657%, which is below 1.5%.

• Prepayments have large fluctuations. During the reporting period, prepayments were 60 million yuan, and the change rate compared to the beginning of the period was 32.45%.

• The ratio of prepayments / current assets continues to increase. In the last three annual reports, the ratio of prepayments / current assets was 0.79%, 3.82%, and 5.52%, respectively, showing continuous growth.

• The growth rate of prepayments is higher than the growth rate of operating costs. During the reporting period, prepayments increased by 32.45% compared to the beginning of the period, operating costs同比 grew by -13.7%, and the growth rate of prepayments is higher than the growth rate of operating costs.

• Other payables have large fluctuations. During the reporting period, other payables were 20 million yuan, and the change rate compared to the beginning of the period was 237.14%.

IV. Operating Efficiency

During the reporting period, the company’s accounts receivable turnover ratio was 12.08, down 18.68% year over year; inventory turnover ratio was 4.3, down 12.11% year over year; and total asset turnover ratio was 0.75, down 13.01% year over year.

From operating assets, it is necessary to focus on:

• Accounts receivable turnover ratio continues to decline. In the last three annual reports, accounts receivable turnover ratio was 15.5, 14.85, and 12.08, respectively, indicating weakening accounts receivable turnover capability.

• Inventory turnover ratio continues to decline. In the last three annual reports, inventory turnover ratio was 5.02, 4.9, and 4.3, respectively, indicating weakening inventory turnover capability.

• The accounts receivable / total assets ratio continues to increase. In the last three annual reports, accounts receivable / total assets was 5.53%, 6.17%, and 6.32%, respectively, showing continuous growth.

• The inventory / total assets ratio continues to increase. In the last three annual reports, inventory / total assets was 11.12%, 12.28%, and 12.39%, respectively, showing continuous growth.

From long-term assets, it is necessary to focus on:

• Total asset turnover ratio continues to decline. In the last three annual reports, total asset turnover ratio was 0.91, 0.87, and 0.75, 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 / original value of fixed assets was 3.04, 2.79, and 2.3, respectively, showing continuous decline.

• Other non-current assets have large fluctuations. During the reporting period, other non-current assets were 7.873 million yuan, up 227.89% compared to the beginning of the period.

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

Sina Finance Listed Company Financial Report Hawk-Eye Early Warning Introduction: Listed Company Financial Report Hawk-Eye Early Warning is an intelligent, professional analytical system for listed company financial reports. Hawk-Eye Early Warning gathers a large number of authoritative financial experts from accounting firms and listed companies, tracking and interpreting the latest financial reports of listed companies across multiple dimensions, such as company performance growth, earnings quality, funding pressure and safety, and operating efficiency, and it highlights potential financial risk points in text-and-image form. It provides professional, efficient, and convenient technical solutions for financial institutions, listed companies, regulatory departments, and others to identify and issue early warnings on financial risks of listed companies.

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Responsible editor: Xiao Lang Express