Shandong Haihua (000822) 2025 Annual Report Analysis: Net Profit Decreased 3638.09% Year-over-Year

According to publicly available data compiled by Securities Star, Shandong Haifa Chemical (000822) recently released its 2025 annual report. The financial statements show that Shandong Haifa’s net profit decreased by 36,638.09% year-over-year. As of the end of this reporting period, the company’s total operating revenue was 4.745 billion yuan, down 21.07% year-over-year, with a net loss attributable to shareholders of 1.388 billion yuan, a decline of 3,638.09%.

Looking at quarterly data, in the fourth quarter, total operating revenue was 1.182 billion yuan, down 0.98% year-over-year, and net loss attributable to shareholders was 991 million yuan, a decrease of 647.87%.

These figures fell short of most analyst expectations, which previously projected a net profit of around 1.137 billion yuan for 2025.

The financial data released this time is not very encouraging. The gross profit margin is 8.86%, down 36.57% year-over-year; net profit margin is -29.24%, a decrease of 4,583.1%; total selling, administrative, and financial expenses amount to 404 million yuan, accounting for 8.51% of revenue, up 28.53% year-over-year. The net asset value per share is 4.28 yuan, down 26.36%; earnings per share is -1.55 yuan, a decrease of 3,975%; and operating cash flow per share is -0.12 yuan, down 106.27%.

Securities Star’s valuation analysis tool indicates:

• Business Evaluation: Last year’s net profit margin was -29.24%, suggesting that after all costs, the company’s products or services have low added value. Historical annual report data shows that over the past 10 years, the median Return on Invested Capital (ROIC) was 11.72%, indicating average investment returns. The worst year was 2025, with an ROIC of -23.48%, reflecting poor investment returns. Historically, the company’s financial reports are relatively average; since its listing, there have been 27 annual reports, with 6 years of losses. Without factors like backdoor listings, value investors generally avoid such companies.
• Debt Servicing Ability: The company’s cash assets are very healthy.
• Business Breakdown: Over the past three years (2023/2024/2025), net operating asset returns were 104.8%, 2.9%, and – respectively; net operating profits were 1.044 billion yuan, 39.22 million yuan, and -1.388 billion yuan; net operating assets were 996 million yuan, 1.352 billion yuan, and 515 million yuan.

In the past three years, the company’s working capital to revenue ratio (the funds needed to generate each yuan of revenue during operations) was -0.17, -0.29, and -0.38; working capital (funds the company uses in operations) was -1.463 billion yuan, -1.758 billion yuan, and -1.804 billion yuan; revenue was 8.528 billion yuan, 6.013 billion yuan, and 4.745 billion yuan.

The financial health check tool suggests:

1. Pay attention to the company’s cash flow status (cash and cash equivalents/ current liabilities are only 64.11%; average operating cash flow over the past three years is only 12.23% of current liabilities).
2. Monitor the company’s debt situation (interest-bearing debt ratio has reached 23.45%).
3. Watch the company’s accounts receivable status (net profit attributable to shareholders is negative in the annual report).

All the above information is compiled by Securities Star from publicly available sources, generated by AI algorithms (Network Credit Backup 310104345710301240019), and does not constitute investment advice.