Eagle Eye Warning: China National Petroleum Corporation's Operating Revenue Declines

Sina Finance Listed Company Research Institute | Financial Report Eagle Eye Early Warning

On March 29, China National Petroleum Corporation (CNPC) released its 2025 annual report. The audit opinion was a standard unqualified (standard, unreserved) audit opinion.

The report shows that the company’s operating revenue for 2025 was RMB 2.86 trillion for the full year, down 2.5% year over year; net profit attributable to shareholders was RMB 157.302 billion, down 4.48% year over year; net profit after non-recurring items attributable to shareholders was RMB 161.671 billion, down 6.7% year over year; and basic earnings per share were RMB 0.86 per share.

Since the company went public in November 2007, it has paid cash dividends 36 times, with cumulative implemented cash dividends of RMB 875.28 billion. The announcement shows that the company plans to distribute cash dividends of RMB 2.5 per 10 shares to all shareholders (including tax).

The listed company financial report Eagle Eye early warning system conducts intelligent, quantitative analysis of CNPC’s 2025 annual report from four major dimensions: performance quality, profitability, capital pressure and safety, and operating efficiency.

I. Performance Quality

During the reporting period, the company’s revenue was RMB 2.86 trillion, down 2.5% year over year; net profit was RMB 172.005 billion, down 6.39% year over year; and net cash flow from operating activities was RMB 412.51 billion, up 1.47% year over year.

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

• Operating revenue declined. During the reporting period, operating revenue was RMB 28,644.7 billion, down 2.5% year over year.

• The growth rate of net profit attributable to shareholders continued to decline. In the past three annual reports, the year-over-year changes in net profit attributable to shareholders were 8.34%, 2.02%, and -4.48% respectively, with the downward trend continuing.

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

• The accounts receivable-to-operating revenue ratio continued to grow. In the past three annual reports, the accounts receivable-to-operating revenue ratios were 2.28%, 2.44%, and 2.72% respectively, showing continuous growth.

II. Profitability

During the reporting period, the company’s gross margin was 21.59%, down 4.31% year over year; net profit margin was 6%, down 3.99% year over year; and return on equity (weighted) was 10.1%, down 9.01% year over year.

From the company’s operating side, the following should receive particular attention:

• The gross margin from sales continued to decline. In the past three annual reports, the sales gross margin was 23.53%, 22.56%, and 21.59% respectively, with the trend continuing downward.

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

• Return on equity continued to decline. In the past three annual reports, the weighted average return on equity was 11.4%, 11.1%, and 10.1% respectively, with the trend continuing downward.

III. Capital Pressure and Safety

During the reporting period, the company’s asset-liability ratio was 36.37%, down 4.02% year over year; the current ratio was 1.1, and the quick ratio was 0.83; total debt was RMB 255.243 billion, of which short-term debt was RMB 91.781 billion, and the ratio of short-term debt to total debt was 35.96%.

From the perspective of long-term capital pressure, the following should receive particular attention:

• Short-term debt can be covered by broad monetary funds, but long-term debt cannot be covered. During the reporting period, the ratio of broad monetary funds/total debt was 0.88, and broad monetary funds were lower than total debt.

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

• The ratio of advance payments/ current assets continued to grow. In the past three annual reports, the ratio of advance payments/current assets was 1.89%, 2.4%, and 2.46% respectively, showing continuous growth.

• The growth rate of advance payments is higher than the growth rate of operating costs. During the reporting period, advance payments increased by 3.33% from the beginning of the period; operating costs grew -1.28% year over year; and the growth rate of advance payments was higher than the growth rate of operating costs.

| Item | 20231231 | 20241231 | 20251231 | | Advance payments growth rate vs. beginning of period | -10.48% | 13.89% | 3.33% | | Operating cost growth rate | -8.92% | -1.21% | -1.28% |

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

• The company’s capital is relatively abundant. During the reporting period, the company’s working capital needs were -145.61 billion, and working capital was RMB 56.5 billion; operating and investing/financing activities both brought relatively ample capital to the company. The company’s ability to make cash payments was RMB 202.102 billion, and the efficiency of capital use is worth further attention.

IV. Operating Efficiency

During the reporting period, the company’s accounts receivable turnover ratio was 38.31, down 8.32% year over year; the inventory turnover ratio was 14.09, up 8.03% year over year; and total asset turnover ratio was 1.03, down 3.7% year over year.

From operating assets, the following should receive particular attention:

• The accounts receivable turnover ratio continued to decline. In the past three annual reports, the accounts receivable turnover ratio was 42.77, 41.79, and 38.31 respectively, indicating weakening accounts receivable collection ability.

• The proportion of accounts receivable to total assets continued to grow. In the past three annual reports, the ratio of accounts receivable/total assets was 2.5%, 2.6%, and 2.76% respectively, showing continuous growth.

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

• The total asset turnover ratio continued to decline. In the past three annual reports, the total asset turnover ratio was 1.11, 1.07, and 1.03 respectively, indicating weakening total asset turnover ability.

• The unit fixed-asset income output value declined year by year. In the past three annual reports, the ratio of operating revenue/fixed asset original value was 6.43, 6.12, and 5.42 respectively, showing a continuous decline.

• Long-term deferred expenses had a relatively large change compared with the beginning of the period. During the reporting period, long-term deferred expenses were RMB 18.26 billion, up 30.25% from the beginning of the period.

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Sina Finance listed company financial report Eagle Eye early warning introduction: The listed company financial report Eagle Eye early warning is an intelligent, professional analysis system for listed company financial reports. Eagle Eye early warning tracks and interprets the latest financial reports of listed companies across multiple dimensions—such as growth of company performance, quality of earnings, capital pressure and safety, and operating efficiency—by aggregating large numbers of authoritative financial experts including accounting firms and listed company professionals. It also highlights potential financial risk points in a combination of text and images. It provides professional, efficient, and convenient technical solutions for identifying and issuing early warnings on financial risks for financial institutions, listed companies, regulatory authorities, and others.

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