Zhiyang Innovation replied to a Shanghai Stock Exchange inquiry letter, stating that net operating cash flow in 2025 fell sharply by 76.04% year-on-year to 17.5264 million yuan, mainly because the growth rate of cash payments for procurement exceeded that of sales collections by 18.23 percentage points, along with increased raw material stockpiling and labour costs. The company's operating revenue in 2025 rose 21.69% year-on-year to 1.181 billion yuan, but cash paid for purchasing goods and receiving services grew 28.72% year-on-year, with the collection and payment structure showing a short procurement payment cycle and a long sales collection cycle. At the end of the period, the book balance of accounts receivable was 803 million yuan, accounting for 61.54% of revenue, of which accounts receivable over one year old amounted to 261 million yuan, up 39.28% year-on-year. Overall gross margin declined for three consecutive years to 28.98%, and the gross margin of artificial intelligence solutions for the water conservancy industry fell by 15.32 percentage points year-on-year to 39.01%, mainly due to rising hardware procurement costs, increased project implementation expenses, and intensifying competition.
Zhiyang Innovation Technology Co. Ltd. AOperating cash flow plunged 76%, gross margin declined for three consecutive years, and accounts receivable over one year old rose 39%.