Eagle Eye Warning: Benxi Steel Plate's Operating Revenue Declines

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

On April 3, Benxi Steel Plate Co., Ltd. released its 2025 annual report.

The report shows that the company’s operating revenue for the full year of 2025 was 46.39B yuan, a year-on-year decrease of 9.51%; net profit attributable to shareholders was -3.94B yuan, a year-on-year increase of 21.74%; net profit after deducting non-recurring items attributable to shareholders was -4.03B yuan, a year-on-year increase of 22.88%; and basic earnings per share were -0.96 yuan/share.

Since the company was listed in January 1998, it has paid cash dividends 20 times, with cumulative cash dividends of 9.17B yuan already implemented.

The listed-company financial report hawk-eye early warning system conducts intelligent quantitative analysis of Benxi Steel Plate’s 2025 annual report across four major dimensions: performance quality, profitability, capital pressure and safety, and operating efficiency.

I. Performance Quality

During the reporting period, the company’s revenue was 46.39B yuan, a year-on-year decrease of 9.51%; net profit was -3.85B yuan, a year-on-year increase of 22.27%; and net cash flow from operating activities was -1.79B yuan, a year-on-year decrease of 262.58%.

From the overall performance level, the following should be given key attention:

• Operating revenue declined. During the reporting period, operating revenue was 46.39 billion yuan, down 9.51% year over year.

• Operating profit was negative for three consecutive quarters. During the reporting period, operating profit for the most recent three quarters was -0.6 billion yuan, -0.78 billion yuan, and -1.66 billion yuan, remaining negative throughout.

| Item | 20250630 | 20250930 | 20251231 | | Operating profit (yuan) | -6.03e8 | -7.77e8 | -16.56e8 |

• Operating revenue and net profit moved in opposite directions. During the reporting period, operating revenue decreased 9.51% year over year, while net profit increased 22.27% year over year, indicating a divergence between changes in operating revenue and net profit.

• Net profit was fairly volatile. In the last three annual reports, net profit were -1.67 billion yuan, -4.96 billion yuan, and -3.86 billion yuan respectively; the year-on-year changes were -38.47%, -200.91%, and 22.27% respectively, showing relatively high volatility in net profit.

| Item | 20231231 | 20241231 | 20251231 | | Net profit (yuan) | -1.67 billion | -4.96 billion | -51.27B | | Net profit growth rate | -38.47% | -200.91% | 22.27% |

From the ratio of revenue to cost and period expenses, the following should be given key attention:

• A divergence between operating revenue and taxes and surcharges. During the reporting period, operating revenue changed by -9.51% year over year, taxes and surcharges changed by 1.07% year over year; a divergence existed between operating revenue and taxes and surcharges.

In combination with the quality of cash flow, the following should be given key attention:

• Net cash flow from operating activities continued to decline. In the last three annual reports, net cash flow from operating activities was 4.33 billion yuan, 1.1 billion yuan, and -1.79 billion yuan respectively, showing a continuous decline.

| Item | 20231231 | 20241231 | 20251231 | | Net cash flow from operating activities (yuan) | 57.82B | 1.1 billion | -51.27B |

II. Profitability

During the reporting period, the company’s gross margin was -4.42%, up 33.94% year over year; net profit margin was -8.31%, up 14.11% year over year; and return on net assets (weighted) was -39.74%, down 15.89% year over year.

From the company’s operating-side performance, the following should be given key attention:

• Selling gross margin was relatively volatile. In the last three annual reports, selling gross margin was -0.88%, -6.69%, and -4.42% respectively; the year-on-year changes were -255%, -655.93%, and 33.94% respectively, indicating abnormal volatility in selling gross margin.

| Item | 20231231 | 20241231 | 20251231 | | Selling gross margin | -0.88% | -6.69% | -4.42% | | Growth rate of selling gross margin | -255% | -655.93% | 33.94% |

• Selling gross margin increased, while inventory turnover decreased. During the reporting period, selling gross margin increased from -6.69% in the same period last year to -4.42%; inventory turnover decreased from 7.24 times in the same period last year to 7.07 times.

| Item | 20231231 | 20241231 | 20251231 | | Selling gross margin | -0.88% | -6.69% | -4.42% | | Inventory turnover (times) | 7.21 | 7.24 | 7.07 |

• Selling gross margin increased, while accounts receivable turnover decreased. During the reporting period, selling gross margin increased from -6.69% in the same period last year to -4.42%; accounts receivable turnover decreased from 56 times in the same period last year to 55.22 times.

| Item | 20231231 | 20241231 | 20251231 | | Selling gross margin | -0.88% | -6.69% | -4.42% | | Accounts receivable turnover (times) | 51.95 | 56 | 55.22 |

From the company’s asset-side performance, the following should be given key attention:

• The average return on net assets over the past three years was below 7%. During the reporting period, the weighted average return on net assets was -39.74%; over the most recent three accounting years, the weighted average return on net assets averaged below 7%.

| Item | 20231231 | 20241231 | 20251231 | | Return on net assets | -9.73% | -34.29% | -39.74% | | Growth rate of return on net assets | -71.3% | -257.19% | -15.89% |

• Return on net assets continued to decline. In the last three annual reports, the weighted average return on net assets was -9.73%, -34.29%, and -39.74% respectively, with a continuously downward trend.

| Item | 20231231 | 20241231 | 20251231 | | Return on net assets | -9.73% | -34.29% | -39.74% | | Growth rate of return on net assets | -71.3% | -257.19% | -15.89% |

• Return on invested capital was below 7%. During the reporting period, the company’s return on invested capital was -15.79%, and the average across the three reporting periods was below 7%.

| Item | 20231231 | 20241231 | 20251231 | | Return on invested capital | -5.24% | -19.29% | -15.79% |

III. Capital Pressure and Safety

During the reporting period, the company’s asset-liability ratio was 81.2%, up 11.67% year over year; the current ratio was 0.35, and the quick ratio was 0.13; total debt was 46.39B yuan, of which short-term debt was 20.2371 billion yuan, with short-term debt accounting for 77.09% of total debt.

From the overall view of financial condition, the following should be given key attention:

• The asset-liability ratio continued to grow. In the last three annual reports, the asset-liability ratio was 61.89%, 72.72%, and 81.2% respectively, showing a growth trend.

• The current ratio continued to decline. In the last three annual reports, the current ratio was 0.7, 0.52, and 0.35 respectively; short-term solvency weakened.

From the perspective of short-term capital pressure, the following should be given key attention:

• The ratio of short-term to long-term debt increased significantly. During the reporting period, short-term debt/long-term debt increased sharply to 0.88.

• Short-term debt is relatively large, and there is a shortage gap in existing cash. During the reporting period, broad money and cash were 1.98 billion yuan, and short-term debt was 7.27 billion yuan; broad money and cash/short-term debt was 0.27, meaning broad money and cash was lower than short-term debt.

• Short-term debt pressure is high, putting strain on the capital chain. During the reporting period, broad money and cash were 1.98 billion yuan, short-term debt was 7.27 billion yuan, and net cash flow from operating activities was -1.79 billion yuan; there is a difference between short-term debt, finance costs, monetary funds, and net cash flow from operating activities.

• The cash ratio is less than 0.25. During the reporting period, the cash ratio was 0.05, which is below 0.25.

• The cash ratio continued to decline. In the last three annual reports, the cash ratio was 0.08, 0.07, and 0.05 respectively, continuing to decline.

• The ratio of net cash flow from operating activities to current liabilities continued to decline. In the last three annual reports, the ratio of net cash flow from operating activities to current liabilities was 0.22, 0.05, and -0.06 respectively, continuing to decline.

From the perspective of capital coordination, the following should be given key attention:

• Capital coordination needs to be improved. During the reporting period, the company’s working capital requirements were -6.81 billion yuan, and working capital was -18.58 billion yuan; cash flow from operations cannot fully cover capital investment in long-term assets, and cash payment ability was -11.77 billion yuan.

| Item | 20251231 | | Cash payment ability (yuan) | -117.69e8 | | Working capital requirements (yuan) | -68.1e8 | | Working capital (yuan) | -185.79e8 |

IV. Operating Efficiency

During the reporting period, the company’s accounts receivable turnover was 55.22, down 1.4% year over year; inventory turnover was 7.07, down 2.38% year over year; and total asset turnover was 1.01, down 8.77% year over year.

From long-term assets, the following should be given key attention:

• Total asset turnover continued to decline. In the last three annual reports, total asset turnover was 1.28, 1.11, and 1.01 respectively, indicating weakening total asset turnover capability.

• Unit fixed-asset revenue productivity decreased year by year. In the last three annual reports, the ratio of operating revenue to original value of fixed assets was 2.31, 1.94, and 1.63 respectively, continuing to decline.

From the three-expense dimensions, the following should be given key attention:

• The ratio of selling expenses to operating revenue continued to increase. In the last three annual reports, the ratio of selling expenses to operating revenue was 0.28%, 0.28%, and 0.29% respectively, continuing to rise.

Click Benxi Steel Plate’s Hawk-Eye early warning to view the latest early-warning details and a visual preview of the financial report.

Introduction to Sina Finance’s listed-company financial report Hawk-Eye early warning: the Hawk-Eye early warning for listed-company financial reports is an intelligent professional analysis system for listed-company financial reports. Hawk-Eye early warning gathers a large number of authoritative financial experts, such as accounting firms and listed companies, and tracks and interprets the latest financial reports of listed companies across multiple dimensions—including company performance growth, earnings quality, capital pressure and safety, and operating efficiency—and uses text and charts to flag potential financial risk points. It provides professional, efficient, and convenient technical solutions for financial institutions, listed companies, regulators, and others to identify and issue early warnings for financial risks of listed companies.

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