Q4 revenue surpasses 10 billion yuan for the first time! Annual profit of 2.454 billion yuan still falls short of institutional expectations! Behind Desay SV's high growth, gross profit margin remains under pressure

Desay SV (SZ002920, stock price 114.61 RMB, market cap 68.4 billion RMB) disclosed its 2025 annual report on the evening of March 5. The company achieved approximately 32.557 billion RMB in revenue in 2025, a year-over-year increase of 17.88%; net profit attributable to shareholders of the listed company was about 2.454 billion RMB, up 22.38%; and non-recurring net profit was approximately 2.414 billion RMB, an increase of 24.05%. The company plans to distribute a cash dividend of 12.50 RMB (tax included) for every 10 shares to all shareholders, with no bonus shares or capital reserve conversion.

Image source: Desay SV announcement

The “Daily Economic News” reporter (hereafter “D.E.N. Reporter”) noted that this is the first time Desay SV’s annual revenue has exceeded 30 billion RMB, and both net profit attributable to the parent and non-recurring net profit have reached new highs. However, according to data compiled from Wind Financial Terminal, 17 institutions’ consensus forecast for Desay SV’s 2025 net profit attributable to the parent is about 2.597 billion RMB, so based on the company’s disclosed data, it falls short of expectations by approximately 5.53%.

Q4 Revenue Breaks 10 Billion RMB for the First Time

Quarterly-wise, Desay SV achieved revenue of 10.221 billion RMB in Q4 2025, with net profit attributable to the parent of about 666 million RMB, and non-recurring net profit of approximately 690 million RMB. Notably, Q4 was the highest revenue quarter of the year, with revenue surpassing 10 billion RMB for the first time, significantly higher than the first three quarters (Q1—Q3 recorded 6.792 billion RMB, 7.852 billion RMB, and 7.692 billion RMB respectively).

Image source: Desay SV announcement

The annual report shows that Desay SV’s intelligent driving business is the core growth engine, generating about 9.7 billion RMB in revenue in 2025, a 32.63% increase year-over-year, with new project orders exceeding 13 billion RMB in annualized sales; the smart cockpit business revenue was 20.585 billion RMB, up 12.92%.

In terms of production and sales, due to increased sales and order growth, the company’s sales volume in 2025 increased by 30.14% year-over-year, and production volume increased by 39.71%. Desay SV has ranked among the top 100 global auto parts suppliers for five consecutive years, climbing 16 places to 58th position. By the end of 2025, its capital reserve reached 6.995 billion RMB, a significant increase from 2.69 billion RMB at the beginning of the year.

Other highlights include a leap in product dimensions in 2025. For example, the company launched a full-stack cockpit fusion solution that maximizes performance under limited hardware resources, demonstrating the maturity of cockpit-driving fusion technology; it also released a robotic intelligent base, leveraging mature assisted driving technology to create a “standardized + modular” industrial empowerment system, helping partners solve core hardware and software adaptation issues, and has established strategic partnerships with multiple companies.

Additionally, Desay SV has built an operational system covering 16 overseas branches worldwide, achieving localization. Besides continuously securing new projects from key clients like Volkswagen and Toyota, the company has successfully entered the supply chains of Honda, Renault, and other new clients, further expanding its global high-quality customer matrix.

Revenue and Net Profit Fall Short of Institutional Expectations

Despite reaching new annual highs in revenue and net profit, data from Wind Financial Terminal shows that 17 institutions’ consensus forecast for Desay SV’s 2025 revenue is about 32.917 billion RMB, so the disclosed 32.557 billion RMB is slightly below expectations by approximately 1.09%. Similarly, the consensus forecast for net profit attributable to the parent in 2025 is about 2.59722 billion RMB, which is also below expectations by approximately 5.53% based on the company’s disclosed figures.

Image source: Wind

While performance has grown, the company’s leverage has also increased—by the end of 2025, total liabilities reached about 13.17 billion RMB, up from 11.099 billion RMB at the start of the year. As the business scale expands, accounts receivable have also grown. For example, receivables from related party Fusay Automotive Electronics Co., Ltd. reached approximately 475 million RMB at year-end, with an allowance for bad debts of about 23.73 million RMB.

Desay SV also openly stated in the annual report that China’s automotive industry is entering a period of deep penetration of intelligence and electrification, intensifying market competition. As OEMs seek cost reductions, Desay SV, as a component supplier, faces the risk of further compression of gross profit margins. The report shows that the core intelligent driving business had a gross margin of 16.36%, a significant decrease of 3.55% from the previous year; the overall automotive electronics gross margin also declined slightly by 0.81% year-over-year.

Image source: Desay SV announcement

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