Eagle Eye Warning: Dongbao Bio's Accounts Receivable to Operating Income Ratio Continues to Rise

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

On March 29, Dongbao Bio released its 2025 annual report. The audit opinion is a standard unqualified audit opinion.

The report shows that the company’s total operating revenue for 2025 was RMB 745 million, a year-on-year decrease of 15.78%; net profit attributable to shareholders was RMB 54.3373 million, a year-on-year decrease of 36.8%; net profit after deducting non-recurring items attributable to shareholders was RMB 44.1615 million, a year-on-year decrease of 44.16%; and basic earnings per share were RMB 0.0928 per share.

Since listing in June 2011, the company has issued cash dividends 13 times, with cumulative cash dividends already implemented totaling RMB 153 million. The announcement shows that the company plans to distribute cash dividends of RMB 0.12 per 10 shares to all shareholders (including tax).

The listed company financial report eagle eye early warning system conducts intelligent quantitative analysis of Dongbao Bio’s 2025 annual report across four major dimensions: performance quality, profitability, funding pressure and safety, and operational efficiency.

I. Performance Quality

During the reporting period, the company’s operating revenue was RMB 745 million, down 15.78% year over year; net profit was RMB 54.3354 million, down 40.46% year over year; and net cash flow from operating activities was RMB 106 million, up 53.22% year over year.

From the overall performance perspective, it is necessary to focus on:

• Operating revenue growth has been steadily declining. In the past three annual reports, the year-on-year changes in operating revenue were 3.3%, -9.19%, and -15.78%, respectively, with the downward trend continuing.

• The growth rate of net profit attributable to shareholders has been steadily declining. In the past three annual reports, the year-on-year changes in net profit attributable to shareholders were 9.55%, -28.28%, and -36.8%, respectively, with the downward trend continuing.

• The growth rate of net profit after deducting non-recurring items attributable to shareholders has been steadily declining. In the past three annual reports, the year-on-year changes in net profit after deducting non-recurring items attributable to shareholders were 9.08%, -28.17%, and -44.16%, respectively, with the downward trend continuing.

From the ratio of revenue, cost, and period expenses, it is necessary to focus on:

• Operating revenue and taxes and surcharges move in opposite directions. During the reporting period, the year-on-year change in operating revenue was -15.78%, while the year-on-year change in taxes and surcharges was 15.4%, indicating a divergence between operating revenue and taxes and surcharges.

Combining the quality of operating assets, it is necessary to focus on:

• The accounts receivable-to-operating revenue ratio continues to rise. In the past three annual reports, the accounts receivable-to-operating revenue ratio was 16.63%, 23.3%, and 24.23%, respectively, showing continuous growth.

From the quality of cash flows, it is necessary to focus on:

• Operating revenue and net cash flow from operating activities diverge. During the reporting period, operating revenue decreased by 15.78% year over year, while net cash flow from operating activities increased by 53.22% year over year; operating revenue and net cash flow from operating activities move in opposite directions.

II. Profitability

During the reporting period, the company’s gross margin was 23.36%, up 2.79% year over year; net profit margin was 7.29%, down 29.31% year over year; and return on equity (weighted) was 3.15%, down 37.87% year over year.

Combining the company’s operating-side view of returns, it is necessary to focus on:

• The net sales profit margin continues to decline. In the past three annual reports, the net sales profit margin was 13.07%, 10.31%, and 7.29%, respectively, with the downward trend continuing.

• Gross sales margin grows, while net sales profit margin declines. During the reporting period, gross sales margin increased from 22.72% in the same period last year to 23.36%, while net sales profit margin decreased from 10.31% in the same period last year to 7.29%.

Combining the company’s asset-side view of returns, it is necessary to focus on:

• The average return on net assets in the most recent three years is below 7%. During the reporting period, weighted average return on net assets was 3.15%; the average weighted average return on net assets for the most recent three accounting years is below 7%.

• Return on net assets continues to decline. In the past three annual reports, the weighted average return on net assets was 7.46%, 5.07%, and 3.15%, respectively, with the downward trend continuing.

• Return on invested capital is below 7%. During the reporting period, the company’s return on invested capital was 2.64%, and the average value over three reporting periods was below 7%.

III. Funding Pressure and Safety

During the reporting period, the company’s asset-liability ratio was 32.42%, down 3.91% year over year; the current ratio was 4.87 and the quick ratio was 3.17; total debt was RMB 559 million, of which short-term debt was RMB 65.3864 million, and short-term debt as a proportion of total debt was 11.7%.

From the perspective of long-term funding pressure, it is necessary to focus on:

• The ratio of total debt to net assets continues to rise. In the past three annual reports, the ratio of total debt to net assets was 28.03%, 28.15%, and 29.61%, respectively, showing continuous growth.

• The cash coverage ratio for total debt is gradually getting smaller. In the past three annual reports, the ratio of broad money funds to total debt was 1.59, 1.24, and 1.04, respectively, showing a continuous decline.

From the perspective of funding control, it is necessary to focus on:

• The ratio of interest income to monetary funds is less than 1.5%. During the reporting period, monetary funds were RMB 480 million, short-term debt was RMB 6.486 million, and the company’s average ratio of interest income to monetary funds was 0.547%, which is below 1.5%.

IV. Operational Efficiency

During the reporting period, the company’s accounts receivable turnover ratio was 3.85, down 19.83% year over year; inventory turnover ratio was 1.51, down 29.71% year over year; and total asset turnover ratio was 0.29, down 12.65% year over year.

From operating assets, it is necessary to focus on:

• The accounts receivable turnover ratio continues to decline. In the past three annual reports, the accounts receivable turnover ratio was 6.32, 4.81, and 3.85, respectively, indicating weakening accounts receivable turnover capability.

• The inventory turnover ratio continues to decline. In the past three annual reports, the inventory turnover ratio was 2.42, 2.15, and 1.51, respectively, indicating weakening inventory turnover capability.

• The inventory-to-total-assets ratio continues to increase. In the past three annual reports, the inventory-to-total-assets ratio was 10.27%, 13.5%, and 15.74%, respectively, showing continuous growth.

From long-term assets, it is necessary to focus on:

• The total asset turnover ratio continues to decline. In the past three annual reports, the total asset turnover ratio was 0.39, 0.33, and 0.29, respectively, indicating weakening total asset turnover capability.

• The unit fixed-asset revenue productivity decreases year by year. In the past three annual reports, the ratio of operating revenue to the original value of fixed assets was 1.22, 0.89, and 0.71, respectively, showing continuous decline.

• Changes in other non-current assets are relatively large. During the reporting period, other non-current assets were RMB 30 million, an increase of 2910.97% compared with the beginning of the period.

From the “three expenses” perspective, it is necessary to focus on:

• The ratio of selling expenses to operating revenue continues to rise. In the past three annual reports, the ratio of selling expenses to operating revenue was 2.01%, 2.11%, and 2.55%, respectively, showing continuous growth.

Click Dongbao Bio’s Eagle Eye early warning to view the latest early-warning details and a visual preview of the financial report.

Sina Finance listed company financial report Eagle Eye early-warning introduction: The listed company financial report Eagle Eye early-warning is a specialized, intelligent financial analysis system for listed company financial reports. Eagle Eye early-warning gathers many authoritative financial experts such as accounting firms and listed companies, and tracks and interprets the latest financial reports of listed companies from multiple dimensions—including company performance growth, earnings quality, funding pressure and safety, and operational efficiency—and provides possible financial risk points in text-and-image form. It provides professional, efficient, and convenient technical solutions for financial institutions, listed companies, regulatory authorities, and others to identify and issue early warnings for financial risks of listed companies.

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