China Water Fisheries (000798) 2025 Annual Report Brief Analysis: Net profit year-over-year increased by 180.52%, short-term debt pressure rising

According to data compiled from Securities Star’s public information, China Fisheries (000798) has released its 2025 annual report. As of the end of the reporting period, the company’s total operating revenue was 4.342 billion yuan, down 11.98% year over year, and its net profit attributable to shareholders was 83.7542 million yuan, up 180.52% year over year. Judging by single-quarter data, in the fourth quarter, total operating revenue was 1.375 billion yuan, down 18.37% year over year, and net profit attributable to shareholders in the fourth quarter was 30.346 million yuan, up 125.25% year over year. During this reporting period, China Fisheries’ short-term debt pressure increased, and the current ratio reached 0.99.

These figures are below expectations from most analysts; previously, analysts generally expected 2025 net profit to be around 134 million yuan (1.34亿元).

Overall, the indicators reported in this set of financial results are mediocre. Among them, the gross margin was 8.26%, up 155.95% year over year; the net profit margin was 3.26%, up 286.03% year over year. Selling expenses, administrative expenses, and financial expenses totaled 342 million yuan, with the three-fee-to-revenue ratio at 7.87%, up 6.27% year over year. Net assets per share were 1.18 yuan, up 19.77% year over year. Operating cash flow per share was 1.28 yuan, down 10.61% year over year. Earnings per share were 0.23 yuan, up 180.51% year over year.

Explanations in the financial statements for the reasons behind financial items with major changes are as follows:

1. The change in selling expenses was -29.34%. Reason: decreases in storage and custody fees, agency and intermediary fees, customs declaration fees, and publicity expenses, etc.
2. The change in the subtotal of cash inflows from operating activities was -19.65%. Reason: operating revenue同比下降 of subsidiaries engaged in the trading business during this period.
3. The change in the subtotal of cash outflows from operating activities was -20.54%. Reason: operating revenue同比下降 of subsidiaries engaged in the trading business during this period.
4. The change in the subtotal of cash inflows from investing activities was 62.32%. Reason: disposal of transport vessels and fishing vessels during this period.
5. The change in the subtotal of cash outflows from investing activities was -22.3%. Reason: year-over-year decrease in new ship investment during this period.
6. The change in net cash flows generated by financing activities was -263.78%. Reason: repayment of bank borrowings and payment of borrowing interest during this period.
7. The change in fixed assets was 13.13%. Reason: procurement of fuel-supply vessels, construction of new vessels converting to fixed assets, and tuna processing center converting to fixed assets.
8. The change in construction in progress was -95.61%. Reason: vessels under construction and tuna processing center converting to fixed assets.
9. The change in short-term borrowings was -13.56%. Reason: decrease in borrowings from financial institutions during this period.

The “Financial Report Analysis Tool” for price-investment forums on Securities Star shows:

• Business assessment: Last year’s ROIC of the company was 5.03%, indicating a general capital return. Last year’s net profit margin was 3.26%; after accounting for all costs, the added value of the company’s products or services is not high. Based on statistics from historical annual report data, over the past 10 years the company’s median ROIC was 3.97%, indicating relatively weak investment returns in the median. The worst year was 2020, when ROIC was -17.9%, reflecting extremely poor investment returns. The company’s historical financial reports are very average. Since the company has been listed for 28 annual reports, with 6 loss-making years, and without factors such as a backdoor listing, value investing typically does not look at this kind of company.

• Business model: The company’s performance mainly relies on R&D, marketing, and capital expenditure driven factors, and it is also necessary to重点关注 whether the company’s capital expenditure projects are worthwhile and whether capital spending is rigid and faces funding pressure. You need to carefully study the actual situation behind these driving forces.

• Business breakdown: Over the past three years (2023/2024/2025), the net operating asset return rate of the company was 0.1%/–/3.8% respectively. Net operating profit was 4.5524 million yuan/-85.4741 million yuan/142 million yuan respectively. Net operating assets were 3.204 billion yuan/3.659 billion yuan/3.707 billion yuan respectively.

  Over the past three years (2023/2024/2025), the company’s working capital/revenue (i.e., the funds the company needs to advance for every 1 yuan of revenue generated in production and operations) was 0.45/0.34/0.38 respectively. Of this, working capital (money the company puts up itself during production and operations) was 1.799 billion yuan/1.687 billion yuan/1.658 billion yuan respectively. Revenue was 4.042 billion yuan/4.933 billion yuan/4.342 billion yuan respectively.

The “Financial Report Health Check Tool” shows:

1. It is recommended to pay attention to the company’s cash flow situation (cash and cash equivalents/current liabilities were only 31.08%, and over the past 3 years the mean of operating cash flow/current liabilities was only 10.12%).
2. It is recommended to pay attention to the company’s debt situation (interest-bearing assets and liabilities ratio has reached 43.39%, and the current ratio is only 0.99).
3. It is recommended to pay attention to the company’s accounts receivable situation (accounts receivable/profit has reached 337.13%).

The above content was compiled by Securities Star based on publicly available information and generated by an AI algorithm (Network Security Record No. 310104345710301240019). It does not constitute investment advice.