Eagle Eye Warning: Kone Elevator's Operating Revenue and Net Profit Diverge

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

On March 26, Konly Elevator released its 2025 annual report.

The report shows that the company’s total operating revenue for all of 2025 was RMB 4.448 billion, up 8.93% year over year; net profit attributable to shareholders was RMB 330 million, down 7.56% year over year; profit attributable to shareholders after deducting non-recurring items was RMB 260 million, down 17.11% year over year; and basic earnings per share were RMB 0.4137 per share.

Since listing in February 2010, the company has issued cash dividends 19 times, with cumulative cash dividends implemented totaling RMB 3.424 billion.

The listed company earnings hawk-eye early warning system conducts an intelligent quantitative analysis of Konly Elevator’s 2025 annual report from four major dimensions: performance quality, profitability, capital pressure and safety, and operating efficiency.

1. Performance Quality

In the reporting period, the company’s operating revenue was RMB 4.448 billion, up 8.93% year over year; net profit was RMB 333 million, down 7.22% year over year; and net cash flow from operating activities was RMB 521 million, up 1.09% year over year.

From the overall performance perspective, the following should receive重点 attention:

• The growth rate of net profit attributable to shareholders continues to decline. In the past three annual reports, the year-over-year changes in net profit attributable to shareholders were 33.11%, -2.17%, and -7.56%, respectively, with the downward trend continuing.

• The growth rate of profit attributable to shareholders after deducting non-recurring items continues to decline. In the past three annual reports, the year-over-year changes in profit attributable to shareholders after deducting non-recurring items were 30.05%, -2.59%, and -17.11%, respectively, with the downward trend continuing.

• Operating revenue and net profit move in opposite directions. In the reporting period, operating revenue increased by 8.93% year over year, while net profit decreased by 7.22% year over year, indicating a divergence between the changes in operating revenue and net profit.

Based on the quality of operating assets, the following should receive重点 attention:

• The growth rate of notes receivable is higher than the growth rate of operating revenue. In the reporting period, notes receivable increased by 55.42% compared with the beginning of the period, while operating revenue grew by 8.93% year over year; the notes receivable growth rate is higher than the operating revenue growth rate.

2. Profitability

In the reporting period, the company’s gross margin was 28.68%, down 1.48% year over year; net profit margin was 7.49%, down 14.82% year over year; and return on equity (weighted) was 9.28%, down 9.9% year over year.

Considering the company’s operating side and earnings, the following should receive重点 attention:

• Declining gross profit margin from sales. In the reporting period, gross margin from sales was 28.68%, down 1.48% year over year.

Based on the company’s asset side and returns, the following should receive重点 attention:

• Return on equity continues to decline. In the past three annual reports, the weighted average return on equity was 11.02%, 10.3%, and 9.28%, respectively, with the downward trend continuing.

3. Capital Pressure and Safety

In the reporting period, the company’s asset-liability ratio was 50.97%, down 3.1% year over year; the current ratio was 1.37, and the quick ratio was 1.1; total debt was RMB 949 million, of which short-term debt was RMB 949 million. The ratio of short-term debt to total debt was 100%.

From the perspective of capital management, the following should receive重点 attention:

• The ratio of interest income to cash and cash equivalents is less than 1.5%. In the reporting period, cash and cash equivalents were RMB 1.14 billion, short-term debt was RMB 0.1 billion, and the company’s average ratio of interest income to cash and cash equivalents was 1.193%, which is below 1.5%.

• The growth rate of advances to suppliers is higher than the growth rate of operating costs. In the reporting period, advances to suppliers increased by 25.73% compared with the beginning of the period; operating costs grew by 9.59% year over year; the growth rate of advances to suppliers is higher than the growth rate of operating costs.

From the perspective of capital coordination, the following should receive重点 attention:

• The company has relatively abundant funds. In the reporting period, the company’s working capital requirement was -0.4 billion yuan, and working capital was RMB 1.37 billion. Operating and investment/financing activities both brought the company relatively abundant funds. The company’s cash payment ability was RMB 1.42 billion, and the efficiency of fund usage is worth further attention.

4. Operating Efficiency

In the reporting period, the company’s accounts receivable turnover rate was 3.49, up 15.07% year over year; inventory turnover rate was 2.86, up 20.73% year over year; and total asset turnover rate was 0.6, up 8.93% year over year.

From long-term assets, the following should receive重点 attention:

• Other non-current assets changed significantly. In the reporting period, other non-current assets were RMB 530 million, up 56% compared with the beginning of the period.

Click Konly Elevator’s hawk-eye early warning to view the latest warning details and a visual preview of the financial report.

Sina Finance listed company earnings hawk-eye early warning introduction: The listed company earnings hawk-eye early warning is a specialized intelligent 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 from multiple dimensions, including corporate earnings growth, earnings quality, capital pressure and safety, and operating efficiency. It also uses text and graphics to flag potential financial risk points. It provides professional, efficient, and convenient technical solutions for identifying and issuing early warnings of financial risks for financial institutions, listed companies, regulatory authorities, and others.

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Responsible editor: Xiao Lang Express