Andamoy A (000553) 2025 Annual Report Summary: Narrowing Losses, High Proportion of Goodwill

According to public data compiled by Securities Star, Andon A (000553) recently released its 2025 annual report. The financial report shows that Andon A’s losses have narrowed, and the goodwill ratio is relatively high. As of the end of this reporting period, the company’s total operating revenue was 28.945 billion yuan, a year-on-year decrease of 1.84%, and the net profit attributable to shareholders was -1.046 billion yuan, a year-on-year increase of 63.98%. Looking at the quarterly data, the total operating revenue in the fourth quarter was 7.266 billion yuan, a year-on-year decrease of 8.77%, and the net profit attributable to shareholders was -623 million yuan, a year-on-year increase of 41.52%.

This data is below the expectations of most analysts, who previously generally expected a net profit of around 410 million yuan for 2025.

The data indicators released in this financial report show average performance. Among them, the gross profit margin is 26.34%, a year-on-year increase of 15.24%, the net profit margin is -3.61%, a year-on-year increase of 63.3%, and the total selling, administrative, and financial expenses amount to 7.693 billion yuan, accounting for 26.58% of revenue, a year-on-year increase of 6.54%. The net asset value per share is 7.54 yuan, a year-on-year decrease of 7.45%, the operating cash flow per share is 1.74 yuan, a year-on-year increase of 7.66%, and the earnings per share is -0.45 yuan, a year-on-year increase of 64.0%.

The financial report analysis tool in Securities Star shows:

• Business Evaluation: Last year’s net profit margin was -3.61%. Considering all costs, the added value of the company’s products or services is not high. From historical annual report data statistics, the median ROIC for the company over the past 10 years is 2.77%, indicating weak median investment returns, with the worst year being 2024, where ROIC was -5.55%, reflecting extremely poor investment returns. The company’s historical financial reports are very average, with 32 annual reports since its listing and four years of losses. Generally, value investing does not look at such companies without factors like backdoor listings.

• Business Model: The company’s performance mainly relies on marketing-driven strategies. A careful study of the actual situation behind these driving forces is needed.

• Business Breakdown: The company’s net operating asset returns for the past three years (2023/2024/2025) were --/–/–, and the net operating profit was -1.606 billion/-2.903 billion/-1.046 billion yuan, while the net operating assets were 37.987 billion/33.861 billion/31.724 billion yuan.

  The company’s working capital/revenue (the funds the company needs to advance for every yuan of revenue generated in its production and operation process) for the past three years (2023/2024/2025) were 0.45/0.42/0.4, with working capital (the money the company spends on its production and operation) being 14.85 billion/12.336 billion/11.585 billion yuan, and revenues being 32.779 billion/29.488 billion/28.945 billion yuan.

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/total assets is only 7.12%, cash and cash equivalents/current liabilities is only 20.39%).
2. It is recommended to pay attention to the company’s debt situation (the interest-bearing asset liability ratio has reached 35.26%).
3. It is recommended to pay attention to financial expense conditions (financial expenses/average operating cash flow over the past three years have reached 64.24%).

The above content is organized by Securities Star based on publicly available information and generated by AI algorithms (Internet Information Office Registration No. 310104345710301240019) and does not constitute investment advice.