QUANJUDE(SZ:002186) Sou Hu Cai Jing·2025-10-22 22:12Core Insights - The company Quanjude (002186) reported a significant decline in financial performance for Q3 2025, with total revenue of 958 million yuan, down 11.62% year-on-year, and a net profit attributable to shareholders of 26.17 million yuan, down 62.85% year-on-year [1] Financial Performance Summary - Total revenue for Q3 2025 was 329 million yuan, a decrease of 17.3% compared to the same quarter last year [1] - The gross profit margin fell to 17.79%, down 11.33% year-on-year, while the net profit margin dropped to 2.85%, down 56.85% year-on-year [1] - Total expenses (selling, administrative, and financial) amounted to 147 million yuan, accounting for 15.38% of revenue, an increase of 2.08% year-on-year [1] - Earnings per share decreased to 0.09 yuan, down 62.83% year-on-year, and operating cash flow per share was 0.32 yuan, down 25.65% year-on-year [1] Debt and Cash Flow Analysis - The company faces increased short-term debt pressure, with a current ratio of 0.77 [1] - Cash and cash equivalents decreased to 116 million yuan, down 19.88% year-on-year, while accounts receivable increased to 69.67 million yuan, up 22.44% year-on-year [1] - The company’s financial health is concerning, with financial expenses reaching 57.4% of the average operating cash flow over the past three years [4] Business Model and Historical Performance - The company's return on invested capital (ROIC) was 4.18% last year, indicating weak capital returns, with a historical median ROIC of 4.44% over the past decade [4] - The business model relies heavily on marketing, and the company has experienced three years of losses since its IPO, suggesting a fragile business model [4] - The net profit margin for the previous year was only 2.57%, indicating low added value for products or services [4]