Eagle Eye Warning: Western Mining's Sales Gross Profit Margin Declines

Sina Finance Listed Company Research Institute | Financial Report Eagle Eye Warning

On March 25th, Western Mining released its 2025 annual report.

The report shows that the company’s total operating revenue for 2025 is 61.69B yuan, a year-on-year increase of 23.31%; net profit attributable to the parent company is 3.64B yuan, up 24.26% year-on-year; net profit after deducting non-recurring gains and losses attributable to the parent is 3.62B yuan, up 22.77% year-on-year; basic earnings per share are 1.53 yuan/share.

Since its listing in July 2007, the company has paid cash dividends 17 times, with a total cash dividend distribution of 10.72B yuan.

The Listed Company Financial Report Eagle Eye Warning System conducts intelligent quantitative analysis of Western Mining’s 2025 annual report from four dimensions: performance quality, profitability, capital pressure and safety, and operational efficiency.

1. Performance Quality Dimension

During the reporting period, the company’s revenue was 61.69B yuan, an increase of 23.31% year-on-year; net profit was 10.21B yuan, up 16.22%; net cash flow from operating activities was 42.75B yuan, an increase of 23.82%.

From the perspective of revenue, cost, and period expenses ratio, the following should be closely monitored:

• The change in sales expenses differs significantly from the change in operating revenue. During the reporting period, operating revenue increased by 23.31% year-on-year, while sales expenses increased by 1.74%, showing a large difference.

Considering the quality of operating assets, the following should be closely monitored:

• The growth rate of accounts receivable notes exceeds that of operating revenue. During the reporting period, accounts receivable notes increased by 50.2% from the beginning of the period, while operating revenue grew by 23.31%, indicating a higher growth rate for accounts receivable notes.

2. Profitability Dimension

During the reporting period, the company’s gross profit margin was 19.57%, a decrease of 1.7% year-on-year; net profit margin was 9.97%, down 5.75%; return on equity (weighted) was 20.5%, an increase of 12.45%.

From the perspective of company operation and earnings, the following should be closely monitored:

• Decline in gross profit margin on sales. During the reporting period, the gross profit margin on sales was 19.57%, down 1.7% year-on-year.

3. Capital Pressure and Safety Dimension

During the reporting period, the company’s asset-liability ratio was 57.5%, a decrease of 1.82% year-on-year; current ratio was 1.24, quick ratio was 0.91; total debt was 5.91B yuan, of which short-term debt was 4.95B yuan, accounting for 33.08% of total debt.

From the perspective of long-term capital pressure, the following should be closely monitored:

• Short-term debt can be covered by broad monetary funds, but long-term debt cannot. During the period, the ratio of broad monetary funds to total debt was 0.4, with broad monetary funds below total debt.

From the perspective of capital management, the following should be closely monitored:

• The ratio of interest income to monetary funds is less than 1.5%. During the period, monetary funds were 9.2 billion yuan, short-term debt was 8.68 billion yuan, and the average interest income to monetary funds ratio was 0.226%, below 1.5%.

Prepaid accounts payable show significant fluctuations. During the reporting period, prepaid accounts payable was 630 million yuan, a change rate of 305.88% from the beginning of the period.

The ratio of prepaid accounts payable to current assets continues to grow. In the last three annual reports, the ratios were 0.57%, 1.17%, and 3.27%, respectively, showing a continuous increase.

Prepaid accounts payable growth exceeds that of operating costs. During the period, prepaid accounts payable increased by 305.88% from the beginning, while operating costs grew by 23.83%, indicating a faster growth rate for prepaid accounts payable.

From the perspective of capital coordination, the following should be closely monitored:

• Capital is relatively abundant. During the period, the company’s working capital demand was -2.71 billion yuan, working capital was 3.77 billion yuan, and operating activities and investment & financing activities provided ample funds. The company’s cash payment capacity was 6.48 billion yuan, warranting further attention to capital utilization efficiency.

4. Operating Efficiency Dimension

During the reporting period, the company’s accounts receivable turnover rate was 534.56, an increase of 122.98%; inventory turnover rate was 9.67, a decrease of 0.14%; total asset turnover rate was 1.08, up 15.38%.

From the perspective of operating assets, the following should be closely monitored:

• Inventory turnover rate continues to decline. In the last three annual reports, the rates were 10.48, 9.68, and 9.67, indicating weakening inventory turnover capacity.

From long-term assets, the following should be closely monitored:

• Significant changes in construction-in-progress. During the period, construction-in-progress was 2.38 billion yuan, an increase of 55.21% from the beginning.

• Large fluctuations in other non-current assets. During the period, other non-current assets were 7.394 million yuan, an increase of 52.38% from the beginning.

Click on Western Mining Eagle Eye Warning to view the latest warning details and visualized financial report preview.

Sina Finance Listed Company Financial Report Eagle Eye Warning Introduction: The Eagle Eye Warning system is an intelligent professional analysis system for listed company financial reports. It gathers authoritative financial experts from accounting firms and listed companies to track and interpret the latest financial reports from multiple dimensions such as performance growth, earnings quality, capital pressure and safety, and operational efficiency, providing visual alerts for potential financial risks. It offers professional, efficient, and convenient technical solutions for financial risk identification and early warning for financial institutions, listed companies, and regulatory authorities.

Eagle Eye Warning Access: Sina Finance APP - Market - Data Center - Eagle Eye Warning or Sina Finance APP - Stock Quote Page - Financials - Eagle Eye Warning

Disclaimer: The market carries risks; investment should be cautious. This article is automatically published based on third-party databases and does not represent Sina Finance’s views. All information herein is for reference only and does not constitute personal investment advice. Please refer to official announcements for accuracy. For questions, contact biz@staff.sina.com.cn.