Shanghai Jiubai 2025 Annual Report Analysis: Operating Cash Flow Increased by 114.75%, R&D Expenses Decreased by 39.11%

Operating Revenue: Steady Growth, Leasing Business Drives Results

In 2025, Shanghai Nine Hundred achieved operating revenue of 95,645,629.14 yuan, up 3.17% from 92,704,824.99 yuan in the same period of the previous year. Judging by the business mix, shop leasing is the core source of revenue, generating 32,624,958.44 yuan and accounting for 34.11% of total revenue; next is the commercial segment revenue of 32,832,140.41 yuan, accounting for 34.33%; industrial segment revenue was 25,694,808.14 yuan, accounting for 26.86%.

By region, Shanghai remains the main contributor to revenue, generating 83,483,924.88 yuan and accounting for 87.29% of total revenue, down 23.02% year over year; revenue outside Shanghai was 7,667,982.11 yuan, accounting for 8.02%, up 6.49% year over year.

• |
• | 34.33% | | Shop leasing | 32,624,958.44 |
• |
• | 34.11% | | Industrial | 25,694,808.14 |
• |
• | 26.86% |

Net Profit and Non-recurring Net Profit: Double Growth, Limited Contribution from Non-recurring Gains and Losses

In 2025, the company reported net profit attributable to shareholders of listed companies of 45,330,714.53 yuan, up 7.85% from 42,031,556.46 yuan in the previous year; net profit after excluding non-recurring gains and losses was 44,381,611.97 yuan, up 6.10% from 41,831,784.66 yuan in the previous year. The amount of non-recurring gains and losses for the current period was 949,102.56 yuan, mainly including government grants of 1,685,811.00 yuan, gains from disposal of fixed assets of 36,104.88 yuan, and net losses from other non-operating items of 787,893.11 yuan, etc. The contribution to net profit is approximately 2.09%; the company’s profitability mainly comes from its core operating business.

Earnings per Share: Rising in Step with Profitability

Basic earnings per share were 0.11 yuan per share, up 10% from 0.10 yuan per share in the previous year; basic earnings per share after excluding non-recurring gains and losses were also 0.11 yuan per share, up 10% from 0.10 yuan per share in the previous year. The change basically matches the growth rate of the company’s net profit, reflecting that the company’s per-share earnings improve in parallel with the overall increase in profit scale.

Expenses: Divergent Structure, Strong Management Effectiveness and Adjusted Investment Coexist

Selling Expenses: Sharp Decrease, Notable Management Effectiveness

In 2025, selling expenses were 14,676,224.55 yuan, down 2,968,998.23 yuan from 17,645,222.78 yuan in the previous year, a year-over-year decrease of 16.83%. The main reductions came from payroll and social insurance expenses (from 9,409,541.64 yuan down to 8,075,588.51 yuan), selling and administrative expenses (from 5,410,873.04 yuan down to 4,371,534.88 yuan), and depreciation of right-of-use assets (from 988,965.77 yuan down to 450,968.43 yuan), showing that the company achieved clear results in cost management on the sales side.

Administrative Expenses: Slight Increase, Increased Investment

Administrative expenses were 32,001,703.15 yuan, up 2,155,414.01 yuan from 29,846,289.14 yuan in the previous year, a year-over-year increase of 7.22%. The growth mainly came from payroll and social insurance expenses (from 19,250,701.02 yuan up to 21,034,332.99 yuan) and depreciation of right-of-use assets (from 1,537,308.49 yuan up to 2,451,829.13 yuan), reflecting that the company’s spending on employee compensation, leasing of office premises, and other areas increased somewhat.

Financial Expenses: Interest Income Decreases, and Outflows Tighten Year over Year

Financial expenses were -2,505,896.87 yuan (net gain), decreasing by 1,366,927.92 yuan from -3,872,824.79 yuan in the previous year. The main reason is that interest income on bank deposits decreased from 4,801,166.46 yuan to 3,292,894.35 yuan, while interest expense decreased from 872,315.53 yuan to 739,274.99 yuan, resulting in a narrower net interest gain.

R&D Expenses: Down Nearly 40% Year over Year, Reduced Investment Intensity

R&D expenses were 353,687.91 yuan, down 227,218.69 yuan from 580,906.60 yuan in the previous year, a year-over-year decrease of 39.11%. Among them, staff compensation decreased from 492,732.26 yuan to 310,976.02 yuan, and direct materials inputs decreased from 6,731.71 yuan to 0, indicating a clear reduction in R&D investment intensity.

R&D Personnel: Specific Headcount and Structure Not Disclosed

The annual report does not separately disclose specific information such as the number of R&D personnel, their educational background structure, or compensation. It only shows the change in staff compensation within R&D expenses, making it impossible to analyze the allocation and stability of the company’s R&D team.

Cash Flows: Operating Cash Flow Doubles; Investment and Financing Cash Flows Narrow

Cash Flow from Operating Activities: Net Amount Doubles, Driven by Both Receipts and Cost Controls

Net cash flow generated from operating activities was 4,629,040.41 yuan, up 114.75% from 2,155,526.72 yuan in the previous year, achieving a doubled growth rate. This was mainly due to cash received from selling goods and providing services increasing from 102,778,905.71 yuan to 105,340,233.12 yuan, while cash paid for other items related to operating activities dropped significantly from 17,221,180.89 yuan to 11,058,871.76 yuan. The effect of controlling cash outflows from operating activities was notable.

Cash Flow from Investing Activities: Net Amount Down 14% Year over Year, and Cash Inflows from Gains Reduce

Net cash flow generated from investing activities was 70,687,968.62 yuan, down 11,504,151.72 yuan from 82,192,120.34 yuan in the previous year, a year-over-year decline of 14%. The main reason is that cash received for investment returns decreased from 86,774,453.87 yuan to 72,790,658.56 yuan, while cash paid for purchasing and constructing fixed assets, intangible assets, and other long-term assets decreased from 4,582,333.53 yuan to 2,157,689.94 yuan. The decline in the scale of cash inflows exceeded the reduction in investment outflows.

Cash Flow from Financing Activities: Reduced Outflows, and Net Amount Narrows Year over Year

Net cash flow generated from financing activities was -19,292,759.92 yuan, increasing by 8,453,145.79 yuan from -27,745,905.71 yuan in the previous year. This was mainly because cash paid for distributing dividends, profits, or paying interest decreased from 18,862,774.82 yuan to 12,828,220.96 yuan, and at the same time cash paid for other items related to financing activities decreased from 8,883,130.89 yuan to 6,464,538.96 yuan, resulting in a reduction in net cash outflows on the financing side.

Potential Risks: Single Main Business and Profit Pressure Coexist

2. Risk of Revenue Dependence on a Single Region: Shanghai’s revenue accounts for as much as 87.29%, but it declined 23.02% year over year. If local consumption demand in Shanghai continues to remain weak, it will directly impact the company’s overall revenue.
3. Risk of Concentrated Profit Structure: The company’s net profit mainly comes from investment returns from Shanghai Nine Hundred City Plaza Co., Ltd. and Shanghai Jiuguang Department Store Co., Ltd., both of which are equity-accounted investees. In 2025, investment returns recognized using the equity method reached 62,482,354.73 yuan, accounting for 137.80% of profit before tax. The company’s own core business profitability is relatively weak, and the stability of its earnings depends on the operating performance of its equity-accounted investees.
4. Risk of Pressure on Cost Management: Changes in administrative expenses and financial expenses show that the company still faces pressure regarding manpower and capital costs. Meanwhile, the significant reduction in R&D expenses may affect long-term product competitiveness.

Compensation of Executives and Board Members: Clear Disclosure of Core Leadership Compensation

The annual report discloses compensation information for some directors and senior executives of the company:

• Chairman Xu Li: The total pre-tax remuneration received from the company during the reporting period was not disclosed separately; he also receives remuneration from the controlling shareholder, Shanghai Xinnanxi (Group) Co., Ltd.
• General Manager Dai Tian: Total pre-tax compensation during the reporting period was 0.9552 million yuan.
• Deputy General Manager Shen Liping: Total pre-tax compensation during the reporting period was 0.4740 million yuan.
• Chief Financial Officer Jiang Xuehao: Total pre-tax compensation during the reporting period was 0.3991 million yuan.

Overall, while the company’s 2025 revenue grew steadily, its profitability improved in parallel and the quality of operating cash flow improved significantly. However, there are also risks such as high dependence on its main business and a relatively single profit structure. Going forward, attention should be paid to improving its core business operating capability and changes in its reliance on external investment returns.

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