Haishun New Materials (300501) 2025 Annual Report Brief Analysis: Net Profit Decreased by 131.19% Year-over-Year

According to publicly available data organized by Securities Star, Haishun New Materials (300501) recently released its annual report for 2025. The financial report shows that Haishun New Materials’ net profit decreased by 131.19% year-on-year. As of the end of this reporting period, the company’s total operating revenue was 1.105 billion yuan, a decrease of 3.3% year-on-year, and the net profit attributable to the parent company was -23.2669 million yuan, a decrease of 131.19% year-on-year. In terms of quarterly data, total operating revenue in the fourth quarter was 282 million yuan, a decrease of 10.84% year-on-year, and the net profit attributable to the parent company was -71.9325 million yuan, a decrease of 1301.56% year-on-year.

These figures fell below most analysts’ expectations, as analysts had generally anticipated a net profit of around 133 million yuan for 2025.

The various data indicators disclosed in this financial report performed unsatisfactorily. Among them, the gross profit margin was 22.38%, down 22.36% year-on-year, the net profit margin was -1.43%, down 120.25% year-on-year, and the total selling expenses, administrative expenses, and financial expenses amounted to 188 million yuan, accounting for 17.03% of revenue, up 15.86% year-on-year. The net asset value per share was 7.24 yuan, down 11.49% year-on-year, the operating cash flow per share was 0.49 yuan, down 40.74% year-on-year, and the earnings per share was -0.13 yuan, down 133.33% year-on-year.

The reasons for significant changes in financial items in the financial statements are explained as follows:

1. The change in financial expenses was 38.78%, due to decreased interest income and increased interest expenses.
2. The change in net cash flow from operating activities was -40.74%, due to decreased cash received from other operating-related activities, decreased cash received from sales of goods and services, decreased cash received from tax refunds, and increased cash paid for other operating-related activities.
3. The change in cash inflow from investing activities was 125.62%, due to increased amounts from selling stocks and funds, increased amounts from redeeming short-term investments, increased reverse repurchase transactions, and increased investment income.
4. The change in cash outflow from investing activities was 52.77%, due to increased purchases of stocks, funds, and reverse repurchase transactions of government bonds.
5. The change in net cash flow from investing activities was 97.6%, due to increased net investment in financial products, increased investment income, and decreased purchases of fixed assets.
6. The change in cash inflow from financing activities was 43.64%, due to increased borrowings.
7. The change in net cash flow from financing activities was 65.75%, due to increased borrowings, decreased repayments of loans, decreased repurchase of treasury stock, and decreased payments to minority shareholders.
8. The change in net increase in cash and cash equivalents was 96.49%, due to increased borrowings, decreased repayments of loans, decreased repurchase of treasury stock, decreased payments to minority shareholders, decreased purchases of fixed assets, and increased investment income.
9. The change in long-term equity investments was -100.0%, due to the disposal of the joint venture Shanghai Jiucheng, resulting in a transfer to assets held for sale.
10. The change in construction in progress was -69.21%, due to the capitalization of projects such as functional polyolefin film materials.
11. The change in right-of-use assets was -93.62%, due to the expiration of some long-term leased assets.
12. The change in lease liabilities was -31.73%, due to the expiration of some long-term leased assets.
13. The change in trading financial assets was -37.61%, due to decreased investments in wealth management products.
14. The reason for the change in accounts receivable was that the company received some bank acceptances from banks with lower credit ratings and some acceptances from financial companies.
15. The change in prepayments was 156.27%, due to increased advance payments for goods.
16. The reason for the change in assets held for sale was the disposal of the joint venture Shanghai Jiucheng, resulting in a transfer to assets held for sale.
17. The change in other current assets was 134.65%, due to increased investments in principal-protected wealth management products.
18. The change in goodwill was 370.48%, due to the acquisition of Zhengyi Packaging.
19. The change in long-term deferred expenses was -30.66%, due to some renovation costs being transferred to fixed assets.
20. The change in deferred tax assets was 45.44%, due to provisions for asset impairment, government grants received, and recognition of equity incentive expenses.
21. The change in other payables was 1730.34%, due to increased payables related to the acquisition of Zhengyi Packaging.
22. The change in non-current liabilities due within one year was 322.47%, due to increased long-term borrowings due within one year.
23. The change in other current liabilities was 1018.66%, due to an increase in accounts receivable that the company holds which have not been derecognized.
24. The change in treasury stock was 112.9%, due to increased repurchases of treasury stock.
25. The change in other comprehensive income was 140.63%, due to the foreign currency translation difference of the subsidiary European Haishun.

Securities Star’s value investment circle financial report analysis tool indicates:

• Business Evaluation: Last year’s net profit margin was -1.43%, indicating that after accounting for all costs, the added value of the company’s products or services is not high. Based on historical annual report data, the median ROIC since the company went public is 9.57%, with good investment returns; however, in the worst year, 2025, the ROIC was -0.21%, indicating very poor investment returns. The company’s historical financial reports have generally been good (Note: The company has been listed for less than 10 years, and the longer the listing time, the more reference value the financial averages have). The company has released 9 annual reports since going public, with one year of losses, which requires careful examination for any special reasons.

• Business Breakdown: The company’s net operating asset return over the past three years (2023/2024/2025) was 6.4%/4.9%/–, with net operating profits of 94.3293 million/80.9064 million/-15.8412 million yuan and net operating assets of 1.482 billion/1.641 billion/1.747 billion yuan.

  The company’s working capital/revenue over the past three years (2023/2024/2025), which represents the funds the company needs to advance for every dollar of revenue generated, was 0.24/0.23/0.32, with working capital (the company’s own funds needed for production and operation) of 241 million/260 million/349 million yuan, and revenues of 1.021 billion/1.143 billion/1.105 billion yuan.

The financial report health check tool shows:

1. Attention is recommended for the company’s cash flow situation (monetary funds/current liabilities are only 94.68%).
2. Attention is recommended for the company’s debt situation (the interest-bearing asset-liability ratio has reached 28.28%).

The above content is organized by Securities Star based on public information and generated by AI algorithms (Internet Information Department filing number 310104345710301240019), and does not constitute investment advice.