Noli Co., Ltd. (603611) 2025 Annual Report Brief Analysis: Net profit decreased by 7.08% year-on-year, and the company's accounts receivable are relatively large.

According to publicly available data compiled by Securities Star, Noli股份 (603611) recently released its 2025 annual report. As of the end of this reporting period, the company’s total operating revenue was 6.689 billion yuan, down 4.14% year-over-year, and net profit attributable to shareholders was 429 million yuan, down 7.08% YoY. Looking at quarterly data, in the fourth quarter, total operating revenue was 1.66 billion yuan, down 9.38% YoY, and net profit attributable to shareholders was 32.89 million yuan, down 66.8% YoY. During this period, Noli股份 had a large accounts receivable balance, with receivables accounting for 390.57% of the latest annual net profit attributable to shareholders.

This figure is below most analyst expectations, which previously projected a net profit of around 622 million yuan for 2025.

The financial data indicators released in this report are average. Among them, gross profit margin is 22.63%, down 0.79 percentage points YoY; net profit margin is 6.42%, down 3.7 percentage points YoY; total sales, management, and financial expenses amount to 631 million yuan, with three expenses accounting for 9.43% of revenue, down 10.15% YoY; net asset per share is 12.32 yuan, up 7.96%; operating cash flow per share is 3.25 yuan, up 9.39%; earnings per share are 1.67 yuan, down 6.7%.

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

1. Financial expenses changed by -428.34%, due to increased exchange gains from currency fluctuations.
2. Cash received from other operating activities decreased by 30.98%, due to reduced recovery of operational deposits.
3. Net cash from disposal of fixed assets, intangible assets, and other long-term assets changed by 419.25%, because subsidiaries received payments from disposal of intangible assets.
4. Cash received from other investing activities increased by 35.58%, due to higher recovery of financial products.
5. Cash paid for investments increased by 2950.16%, due to increased external investments.
6. Cash paid for other investing activities increased by 38.43%, due to higher purchase of financial products.
7. Cash received from borrowings decreased by 40.2%, because short-term operational loans decreased.
8. Cash used for debt repayment decreased by 36.67%, due to reduced repayment of maturing bank loans.
9. Cash paid for dividends, profits, or interest increased by 33.98%, due to higher dividend payouts.
10. Changes in trading financial assets increased by 110.14%, because short-term financial products increased.
11. Accounts receivable notes increased by 546.25%, due to higher balances of commercial acceptance bills.
12. Accounts receivable financing increased by 114.83%, due to higher balances of bank acceptance bills.
13. Long-term equity investments increased by 1605.62%, due to increased investments in associates.
14. Construction in progress increased by 115.42%, reflecting more investment in future smart logistics projects.
15. Right-of-use assets increased by 321.78%, due to France’s SAVOYE leasing factory buildings via financing lease.
16. Other non-current assets increased by 549.56%, due to higher payments for equity investment commitments.
17. Short-term borrowings decreased by 33.82%, reflecting a reduction in operational short-term loans.
18. Accounts payable notes increased by 31.41%, due to higher balances at period-end.
19. Other payables decreased by 35.42%, due to lower deposits and guarantees, and reduced scope from subsidiary disposals.
20. Non-current liabilities due within one year increased by 196.51%, due to higher short-term long-term borrowings.
21. Long-term borrowings decreased by 41.09%, reflecting a reduction in long-term loans due after one year.
22. Lease liabilities increased by 355.98%, due to France’s SAVOYE leasing factory buildings via financing lease.
23. Deferred income increased by 47.58%, due to higher government grants related to assets at period-end.
24. Net cash flow from investing activities decreased by 32.68%, due to increased payments for short-term financial products and operational equity investments.
25. Net cash flow from financing activities decreased by 32.51%, due to reduced operational borrowings.

According to Securities Star’s valuation analysis tools:

• Business Evaluation: The company’s ROIC last year was 10.26%, indicating an average capital return. The net profit margin was 6.42%, suggesting moderate added value from products or services after all costs. Over the past ten years, the median ROIC was 11.37%, with an average investment return. The worst year was 2020, with a ROIC of 9.81%, still relatively decent. Overall, the company’s historical financial performance is average.
• Business Model: The company’s performance mainly relies on marketing-driven growth. A detailed analysis of this driver is necessary.
• Business Breakdown: Over the past three years (2023/2024/2025), the net return on operating assets was 22.5%/19.6%/18.5%, with net operating profits of 461 million/465 million/429 million yuan, and net operating assets of 2.053 billion/2.37 billion/2.325 billion yuan.

The financial health check indicates:

1. Focus on cash flow status (cash and cash equivalents/ current liabilities only 45.88%, average operating cash flow over three years/ current liabilities only 14.88%).
2. Attention to accounts receivable status (accounts receivable / profit reaching 390.57%).

The fund holding the largest position in Noli股份 is Guolian An Stable Mixed A, with a scale of 186 million yuan, latest net value of 1.07 (as of March 25), up 1.04% from the previous trading day, and an increase of 24.18% over the past year. The current fund manager is Chu Leyan.

The above content is compiled by Securities Star based on publicly available information, generated by AI algorithms (Wangxin Algorithm Record 310104345710301240019), and does not constitute investment advice.