Eagle Eye Warning: Southern Power Grid Technology's accounts receivable growth rate exceeds the revenue growth rate

Sina Finance Listed Company Research Institute | Earnings Eagle-Eye Warning

On March 30, NWS Technology released its 2025 annual report.

The report shows that the company’s total operating revenue for 2025 was RMB 3.685 billion, up 22.27% year over year; net profit attributable to shareholders was RMB 421 million, up 15.28% year over year; net profit after deducting non-recurring items attributable to shareholders was RMB 403 million, up 16.9% year over year; and basic earnings per share were RMB 0.75 per share.

Since listing in December 2021, the company has paid cash dividends 6 times, with total cash dividends implemented of RMB 443 million.

The listed-company earnings eagle-eye warning system conducts intelligent quantitative analysis of NWS Technology’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 operating revenue was RMB 3.685 billion, up 22.27%; net profit was RMB 428 million, up 15.57%; and net cash flow from operating activities was RMB 485 million, up 31.68%.

From the overall performance perspective, the following require particular attention:

• The growth rate of net profit attributable to shareholders has continued to decline. In the past three annual reports, the year-over-year changes in net profit attributable to shareholders were 36.71%, 29.79%, and 15.28%, respectively, with the downward trend continuing.

• The growth rate of net profit attributable to shareholders after deducting non-recurring items has continued to decline. In the past three annual reports, the year-over-year changes in net profit attributable to shareholders after deducting non-recurring items were 36.53%, 30.6%, and 16.9%, respectively, with the downward trend continuing.

结合经营性资产质量看，需要重点关注：

• The growth rate of notes receivable is higher than the growth rate of operating revenue. During the reporting period, notes receivable increased 733.64% compared with the beginning of the period; operating revenue increased 22.27% year over year; and the growth rate of notes receivable is higher than the growth rate of operating revenue.

• The growth rate of accounts receivable is higher than the growth rate of operating revenue. During the reporting period, accounts receivable increased 28.25% compared with the beginning of the period; operating revenue increased 22.27% year over year; and the growth rate of accounts receivable is higher than the growth rate of operating revenue.

• The ratio of accounts receivable to operating revenue continues to grow. In the past three annual reports, the accounts receivable-to-operating-revenue ratio was 16.47%, 16.96%, and 17.79%, respectively, showing continuous growth.

II. Profitability

During the reporting period, the company’s gross margin was 29.79%, down 3.37% year over year; net profit margin was 11.62%, down 5.48% year over year; and return on net assets (weighted) was 13.31%, up 6.14% year over year.

结合公司经营端看收益，需要重点关注：

• Declining gross margin on sales. During the reporting period, the gross margin on sales was 29.79%, down 3.37% year over year.

III. Capital Pressure and Safety

During the reporting period, the company’s asset-liability ratio was 35.53%, down 0.66% year over year; the current ratio was 2.55, and the quick ratio was 2.06; total debt was RMB 31.8639 million, of which short-term debt was RMB 31.8639 million. Short-term debt accounted for 100% of total debt.

From the perspective of short-term capital pressure, the following require particular attention:

• A significant increase in the ratio of short-term to long-term debt. During the reporting period, the ratio of short-term debt to long-term debt increased significantly to 0.58.

From the perspective of capital management and control, the following require particular attention:

• The ratio of interest income to monetary funds is less than 1.5%. During the reporting period, monetary funds were RMB 1.18 billion, short-term debt was RMB 0.3 billion, and the company’s average ratio of interest income to monetary funds was 0.347%, which is below 1.5%.

• Changes in advances to suppliers are relatively large. During the reporting period, advances to suppliers were RMB 0.2 billion, and the change rate versus the beginning of the period was 80.84%.

• The growth rate of advances to suppliers is higher than the growth rate of operating costs. During the reporting period, advances to suppliers increased 80.84% compared with the beginning of the period; operating costs increased 24.11% year over year; and the growth rate of advances to suppliers is higher than the growth rate of operating costs.

IV. Operating Efficiency

During the reporting period, the company’s accounts receivable turnover ratio was 6.32, down 2.64% year over year; inventory turnover ratio was 3.22, up 28.77%; and total asset turnover ratio was 0.75, up 15.96%.

From the perspective of operating assets, the following require particular attention:

• The proportion of accounts receivable to total assets continues to grow. In the past three annual reports, the accounts receivable-to-total-assets ratio was 9.05%, 10.85%, and 12.79%, respectively, showing continuous growth.

Click on NWS Technology’s eagle-eye warning to view the latest warning details and a visual preview of the financial report.

Introduction to Sina Finance’s listed-company earnings eagle-eye warning: The listed-company earnings eagle-eye warning is an intelligent professional analysis system for listed-company financial reports. By bringing together a large number of authoritative financial experts, such as accounting firms and listed-company professionals, the eagle-eye warning 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 graphics to flag potential financial risk points. It provides technical solutions for financial institutions, listed companies, regulatory bodies, and others to identify and issue warnings about financial risks of listed companies in a professional, efficient, and convenient manner.

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