Haitian Precision Engineering (601882) 2025 Annual Report Brief Analysis: Revenue Growth Without Profit Increase, Company's Accounts Receivable Balance Remains Large

According to publicly available data compiled by Securities Star, Haitian Precision Engineering (601882) recently released its 2025 annual report. As of the end of this reporting period, the company’s total operating revenue was 3.368 billion yuan, up 0.48% year-over-year, and net profit attributable to shareholders was 429 million yuan, down 17.97% year-over-year. On a quarterly basis, the fourth quarter’s total revenue was 847 million yuan, down 1.42% year-over-year, and net profit attributable to shareholders was 91.379 million yuan, down 23.34% year-over-year. During this period, Haitian Precision Engineering had a large accounts receivable balance, with receivables accounting for 125.73% of the latest annual net profit attributable to shareholders.

This data fell below most analyst expectations, which previously projected a net profit of around 606 million yuan for 2025.

The financial report shows average performance across key indicators. Gross profit margin was 25.7%, down 6.01 percentage points year-over-year; net profit margin was 12.76%, down 18.21 percentage points. Total selling, administrative, and financial expenses amounted to 213 million yuan, accounting for 6.33% of revenue, an increase of 24.92%. Net asset per share was 5.65 yuan, up 9.08% year-over-year; operating cash flow per share was 1.14 yuan, up 138.51%; earnings per share was 0.82 yuan, down 18.0%.

The reasons for significant changes in certain financial items are as follows:

1. Financial expenses decreased by 86.71%, due to increased interest income.
2. Net cash flow from operating activities increased by 138.51%, due to reduced payments for materials.
3. Net cash flow from investing activities decreased by 353.92%, due to reduced maturity of financial products investments.
4. Trading financial assets increased by 132.47%, due to more financial products measured at fair value with gains/losses recognized in current profit or loss.
5. Notes receivable increased by 2441.91%, due to an increase in acceptance bills measured at amortized cost.
6. Prepaid expenses decreased by 51.8%, due to reduced prepayments for materials.
7. Other receivables increased by 44.37%, due to higher receivables for export tax rebates at period-end.
8. Contract assets increased by 56.43%, due to higher contract warranty deposits.
9. Other current assets increased by 309.18%, due to increased accrued interest on fixed deposits, VAT credits, and pre-paid taxes.
10. Long-term equity investments increased by 3150.99%, due to increased investments in subsidiaries or associates with significant influence.
11. Other non-current financial assets decreased by 50.11%, due to reduced holdings of financial products measured at fair value with gains/losses recognized in current profit or loss.
12. Right-of-use assets increased by 511.12%, due to increased lease payments for properties.
13. Long-term deferred expenses decreased by 65.87%, due to amortization of software leasing costs.
14. Short-term borrowings increased, driven by cash obtained from discounting bills issued within the group.
15. Accounts payable increased by 34.61%, due to higher amounts payable at period-end.
16. Non-current liabilities due within one year increased by 85.19%, mainly from increased lease liabilities due within one year.
17. Lease liabilities increased, due to higher lease payments for properties.
18. Other comprehensive income decreased by 2007.55%, mainly due to exchange rate fluctuations affecting foreign currency translation differences of subsidiaries.
19. Special reserves increased by 43.6%, as the company accrued safety production costs that were not fully utilized.
20. Investment income decreased by 62.31%, due to lower gains from financial investments.
21. Fair value change gains increased by 129.41%, due to higher fair value of trading financial assets at period-end.
22. Non-operating expenses increased by 12,872.92%, mainly due to increased losses on disposal of fixed assets.
23. Income tax expense decreased by 38.51%, reflecting lower profits.
24. Other comprehensive income after tax decreased by 346.44%, mainly due to exchange rate effects on foreign currency translation.

Securities Star’s valuation analysis tools indicate:

• Business Evaluation: The company’s ROIC last year was 14.55%, indicating strong capital returns. The net profit margin was 12.76%, suggesting high added value of products or services after all costs. Historically, since listing, the median ROIC is 7.88%, indicating average investment returns, with the worst year being 2013 at 2.5%. The company’s historical financial performance is relatively good (note: the company has been listed for less than 10 years, so longer-term data has more reference value).
• Solvency: The company’s cash assets are very healthy.
• Business Breakdown: Over the past three years (2023/2024/2025), net return on operating assets was 57.3%/42.5%/32.1%, with net operating profits of 609 million/523 million/430 million yuan, and net operating assets of 1.064 billion/1.231 billion/1.34 billion yuan.

The financial health check tool suggests:

1. Pay attention to the company’s cash flow status (cash and cash equivalents to current liabilities ratio is only 74.88%).
2. Monitor accounts receivable status (accounts receivable to profit ratio is 125.73%).

Analyst tools show that securities analysts generally expect a performance of 474 million yuan in 2026, with an average EPS of 0.91 yuan.

The above content is compiled by Securities Star from publicly available information and generated by AI algorithms (Network Credit Number 310104345710301240019). It does not constitute investment advice.