Eagle Eye Alert: Jianghe Group's Return on Equity Continues to Decline

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

On March 19, Jianghe Group released its 2025 annual report.

The report shows that the company’s total operating revenue for 2025 was 21.845 billion yuan, a decrease of 2.5% year-on-year; net profit attributable to shareholders was 610 million yuan, down 4.31% year-on-year; net profit after non-recurring gains and losses attributable to shareholders was 595 million yuan, up 42.06%; basic earnings per share were 0.54 yuan/share.

Since its listing in July 2011, the company has paid cash dividends 16 times, totaling 3.308 billion yuan.

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

1. Performance Quality

During the reporting period, the company’s revenue was 21.845 billion yuan, a 2.5% decrease; net profit was 692 million yuan, down 10.31%; net cash flow from operating activities was 1.545 billion yuan, down 4.97%.

Overall performance analysis highlights:

• Revenue growth rate continues to decline. In the past three annual reports, the year-on-year changes in revenue were 16.05%, 6.93%, and -2.5%, showing a continuous downward trend.

2. Profitability

During the reporting period, the company’s gross profit margin was 17.24%, an increase of 7.44% year-on-year; net profit margin was 3.17%, down 8.01%; return on equity (weighted) was 8.36%, down 5.32%.

Key points to monitor regarding profitability:

• Net profit margin from sales continues to decline. In the past three annual reports, the net profit margins were 3.55%, 3.44%, and 3.17%, showing a persistent downward trend.

• Gross profit margin from sales increased, but net profit margin from sales decreased. During the reporting period, gross profit margin from sales rose from 16.04% last year to 17.24%, while net profit margin from sales declined from 3.44% to 3.17%.

3. Asset-side profitability

• Return on net assets continues to decline. In the past three annual reports, the weighted average return on net assets was 10.01%, 8.83%, and 8.36%, showing a downward trend.

4. Capital Pressure and Safety

The company’s asset-liability ratio was 71.79%, an increase of 2.05% year-on-year; current ratio was 1.18, quick ratio was 1.13; total debt was 6.92 billion yuan, with short-term debt at 6.105 billion yuan, accounting for 88.22% of total debt.

Overall financial status highlights:

• Current ratio continues to decline. In the past three annual reports, the current ratios were 1.21, 1.19, and 1.18, indicating weakening short-term debt-paying ability.

Short-term capital pressure:

• Cash ratio continues to decline. In the past three annual reports, the cash ratios were 0.32, 0.31, and 0.3.

From a capital management perspective:

• Interest income to monetary funds ratio is less than 1.5%. During the reporting period, monetary funds were 5.49 billion yuan, short-term debt was 1.69 billion yuan, and the average interest income to monetary funds ratio was 0.967%, below 1.5%.

• Prepaid accounts payable to current assets ratio continues to grow. In the past three annual reports, ratios were 1.28%, 1.68%, and 1.92%.

• Growth rate of prepaid accounts payable exceeds that of operating costs. During the period, prepaid accounts payable increased by 18.61% from the beginning of the period, while operating costs grew by -3.89%, indicating a higher growth rate for prepayments.

4. Operational Efficiency

During the reporting period, accounts receivable turnover was 1.73, down 5.43% year-on-year; inventory turnover was 20.46, up 2.1%; total asset turnover was 0.73, down 5.58%.

Long-term asset focus:

• Revenue per unit of fixed assets declines annually. In the past three annual reports, the ratio of operating revenue to original fixed assets was 15.6, 11.86, and 9.34, showing a continuous decline.

From the perspective of the three expenses (selling, administrative, R&D):

• Selling expenses as a percentage of operating revenue continue to grow. In the past three annual reports, ratios were 1.28%, 1.36%, and 1.49%.

Click on Jianghe Group 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 platform 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 of potential financial risks. It offers professional, efficient, and convenient technical solutions for financial institutions, listed companies, and regulatory authorities to identify and warn of financial risks.

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