Eagle Eye Warning: Lutianhua Operating Revenue Declines

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

On March 15, Luzhou Tianhua released its 2025 annual report, with an audit opinion of standard unqualified opinion.

The report shows that the company’s total operating revenue for 2025 was 4.495 billion yuan, a decrease of 11.34% year-on-year; net profit attributable to shareholders was 31.78 million yuan, an increase of 50.23%; net profit after non-recurring gains and losses was -38.427 million yuan, down 99.36%; basic earnings per share were 0.02 yuan/share.

Since listing in June 1999, the company has paid cash dividends 11 times, totaling 1.43 billion yuan.

The listed company financial report Eagle Eye warning system conducts intelligent quantitative analysis of Luzhou Tianhua’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 4.495 billion yuan, down 11.34% year-on-year; net profit was 31.526 million yuan, up 49.7%; net cash flow from operating activities was 2.32 billion yuan, down 31.83%.

Overall performance analysis to focus on:

• Decline in operating revenue. During the reporting period, operating revenue was 4.5 billion yuan, a decrease of 11.34%.

• Significant decline in non-recurring net profit attributable to shareholders. During the reporting period, non-recurring net profit was -4.842 million yuan, a sharp decrease of 99.36%.

• Divergence between revenue and net profit. During the reporting period, revenue decreased 11.34% year-on-year, while net profit increased 49.7%, showing a divergence.

• Net profit is positive but non-recurring net profit is negative. During the reporting period, net profit was 30 million yuan, non-recurring net profit was -40 million yuan.

• Net profit shows volatility. Over the last three annual reports, net profits were 1.5 billion, 200 million, and 300 million yuan, with year-on-year changes of -60.06%, -85.61%, and 49.7%, respectively.

Operational asset quality analysis:

• Accounts receivable/revenue ratio continues to grow. Over the last three annual reports, ratios are 1.25%, 2.33%, and 3.94%, respectively.

Cash flow quality focus:

• Operating cash flow from activities continues to decline. Over the last three annual reports, it was 1 billion, 340 million, and 230 million yuan, respectively.

2. Profitability

During the reporting period, the company’s gross profit margin was 8.74%, down 2.47% year-on-year; net profit margin was 0.7%, up 68.84%; return on equity (weighted) was 0.5%, up 51.52%.

Focus on profitability from operational perspective:

• Continuous decline in gross profit margin. Over the last three annual reports, gross profit margins were 14.59%, 9.77%, and 8.74%, showing a downward trend.

• Continuous decline in net profit margin. Over the last three annual reports, net profit margins were 2.28%, 1.5%, and 0.7%, with a downward trend.

Asset-side profitability focus:

• Average return on net assets over the past three years is below 7%. During the period, the weighted average return on net assets was 0.5%, with the three-year average below 7%.

• Return on invested capital below 7%. During the period, the company’s return on invested capital was 0.64%, with the three-period average below 7%.

Unusual gains and losses analysis:

• High proportion of non-recurring gains. During the period, the ratio of non-recurring gains to net profit was 110%. (Note: Non-recurring gains include investment net income, fair value changes, non-operating income, and losses on disposal of non-current assets).

3. Capital Pressure and Safety

During the reporting period, the company’s asset-liability ratio was 32.47%, down 21.51% year-on-year; current ratio was 1.41, quick ratio was 1.17; total debt was 1.655 billion yuan, with short-term debt at 1.639 billion yuan, accounting for 99.05% of total debt.

Overall financial condition focus:

• Declining current ratio. Over the last three annual reports, current ratios were 1.67, 1.6, and 1.41, indicating weakening short-term debt-paying ability.

Short-term capital pressure:

• Operating cash flow from activities to current liabilities ratio continues to decline. Over the last three reports, ratios were 0.3, 0.09, and 0.08.

Capital management focus:

• Other receivables/Current assets ratio continues to grow. Over the last three annual reports, ratios are 0.23%, 1.52%, and 2.47%.

• Significant change in other payables. During the period, other payables were 520 million yuan, an increase of 85.27% from the beginning of the period.

4. Operating Efficiency

During the reporting period, accounts receivable turnover was 30.48 times, down 40.41%; inventory turnover was 6.1 times, down 13.34%; total asset turnover was 0.44, down 7.04%.

Asset management focus:

• Accounts receivable turnover continues to decline. Over the last three annual reports, it was 85.56, 51.14, and 30.48 times, indicating weakening collection efficiency.

• Inventory turnover continues to decline. Over the last three reports, it was 8.3, 6.98, and 6.1 times.

• Accounts receivable/assets ratio continues to grow. Over the last three reports, ratios are 0.77%, 1.08%, and 1.88%.

Long-term asset analysis:

• Total asset turnover rate continues to decline. Over the last three reports, it was 0.62, 0.49, and 0.44 times.

• Per-unit fixed asset income output decreases annually. Over the last three reports, revenue per original fixed asset was 1.7, 1.24, and 1.1.

• Other non-current assets fluctuate significantly. During the period, other non-current assets were 70 million yuan, a 563.52% increase from the beginning of the period.

Click on Luzhou Tianhua 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 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 involves 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.