Yapu Co., Ltd. 2025 Annual Report Analysis: Revenue increased by 13.09% to 9.133 billion yuan, and financial expenses dropped by 43.57%

Core Profitability Index Interpretation

Operating Revenue: Steady Scale Expansion, Structural Optimization Begins to Show

In 2025, the company achieved operating revenue of 9.133 billion yuan, a year-on-year increase of 13.09%, setting a new record for revenue scale. From a business structure perspective, automotive parts manufacturing remains the core source of income, achieving revenue of 9.133 billion yuan for the year, accounting for 100% of total revenue. By product, the fuel tank business contributed revenue of 8.412 billion yuan, while new businesses such as rotary transformers, thermal management, and fuel pipes generated revenue of 396 million yuan, and other businesses such as materials, aftermarket parts, and tools sales contributed 325 million yuan, indicating that new business segments are gradually forming incremental contributions.

Net Profit: Profit Resilience Highlights, Limited Impact from Non-Recurring Gains and Losses

Net profit attributable to shareholders of the listed company was 528 million yuan, a year-on-year increase of 5.62%; net profit after deducting non-recurring gains and losses was 521 million yuan, a year-on-year increase of 2.47%. The net amount of non-recurring gains and losses was 7.0183 million yuan, having a minimal impact on net profit, with the company’s profit growth primarily relying on the stable support of its main business.

Earnings Per Share: Earnings Level Increases in Synchrony

Basic earnings per share were 1.03 yuan/share, a year-on-year increase of 5.10%; earnings per share after deducting non-recurring items were 1.02 yuan/share, a year-on-year increase of 3.03%. The growth in earnings per share is basically in line with the increase in net profit, and shareholder return levels have improved in tandem with the company’s profit scale.

In-Depth Analysis of Period Expenses

Overall, period expenses exhibited a “three increases and one decrease” pattern, with total period expenses in 2025 amounting to 659 million yuan (selling expenses + management expenses + R&D expenses + financial expenses), with changes year-on-year as follows:

Selling Expenses: Significant Increase, Enhanced Sales Investment

Selling expenses surged by 37.73% year-on-year, mainly due to increases in employee compensation and packaging costs, reflecting the company’s increased investment in sales resources to expand the market and maintain customer relationships.

Management Expenses: Steady Growth, Continuous Optimization of Management Efficiency

Management expenses grew by 12.94% year-on-year, with increases in employee compensation, office expenses, travel expenses, and intangible asset amortization costs being the main driving factors. The company has improved its management system in tandem with its scale expansion to ensure operational efficiency.

R&D Expenses: Continued Investment, Strengthening Technical Barriers

R&D expenses increased by 6.68% year-on-year, with total R&D investment of 338 million yuan for the year, all of which were capitalized R&D expenditures. The company focuses on the automotive energy storage system and core components of new energy, with R&D projects covering fuel tanks, rotary transformers, and thermal management systems, reserving technological strength for long-term development.

Financial Expenses: Significant Reduction in Losses, Highlighting Exchange Gains

Financial expenses achieved a net income of 50.5694 million yuan, reducing losses by 15.3462 million yuan year-on-year, mainly due to a decrease in exchange losses. The company has effectively reduced the negative impact of exchange rate fluctuations on profits by optimizing its foreign exchange management strategy.

Cash Flow and Capital Structure Analysis

Operating Cash Flow: Slight Decline in Scale, Quality Remains Stable

The net cash flow generated from operating activities was 745 million yuan, a year-on-year decrease of 2.45%, mainly due to an increase in cash paid for purchasing goods and accepting services. However, it still maintained a net inflow status, with a good match to net profit, indicating strong cash generation capability from the main business.

Investment Cash Flow: Net Outflow Narrowed, Structure Adjusted

The net cash flow from investment activities was -499 million yuan, a year-on-year decrease in net outflow of 441 million yuan, mainly due to an increase in net cash inflow related to bank time deposits this year. The company’s investment focus is on expanding its main business, completing the acquisition of Shanghai Yingshuang Motor Technology Co., Ltd. in 2025 to lay out the rotary transformer business and improve the product line of core components for new energy.

Financing Cash Flow: Expanded Net Outflow, Impact from Dividends and Buybacks

The net cash flow from financing activities was -379 million yuan, a year-on-year increase in net outflow of 60 million yuan, mainly due to an increase in cash paid for stock buybacks this year. The company optimizes its capital structure through share repurchases while maintaining a stable cash dividend policy to return to shareholders.

R&D and Innovation Capability Analysis

R&D Investment: Continued High-Intensity Investment, Focusing on Core Technologies

In 2025, R&D investment was 338 million yuan, accounting for 3.70% of operating revenue, slightly down from 3.92% in 2024, but the absolute scale continued to grow. R&D investment is primarily used for direct materials, personnel costs, depreciation, new product design fees, etc., covering the entire chain of innovation from fundamental research to product implementation.

R&D Personnel and Results: Team Support, Accelerated Results Transformation

The company has a professional R&D team, combining internal training and external recruitment to build a team of technical talents covering multiple fields. In 2025, 53 new patents were granted, including 23 invention patents, with continuous technological achievements emerging. New products such as rotary transformers and thermal management systems are gradually achieving mass production, and R&D investment is gradually transforming into actual production capacity and revenue contributions.

Risks Faced and Response Strategies

Macroeconomic and Market Risks

Factors such as a slowdown in global economic growth may lead to a decline in the growth rate of the automotive industry or even negative growth, potentially affecting the overall market demand for the company. The company will continue to optimize its customer structure and expand into emerging markets to reduce the impact of fluctuations in a single market.

Industry Transformation and Business Transition Risks

As automotive consumption demand shifts towards new energy, the continuous increase in the penetration rate of new energy vehicles may challenge the long-term development space of the company’s traditional fuel system business, posing a risk of gradual replacement of traditional businesses. The company has preemptively laid out its core components in the new energy sector, entering the rotary transformer field through the acquisition of Yingshuang Technology, while also advancing the R&D of thermal management systems, battery pack housings, and other products to accelerate business transformation.

International Operation Risks

The company’s extensive global layout may face adverse impacts on the operational efficiency and profitability of overseas subsidiaries due to political, economic, cultural differences, and trade barriers in the countries where they operate. The company will strengthen overseas market research, improve risk early warning mechanisms, optimize management models for overseas subsidiaries, and enhance localized operational capabilities.

Intensifying Market Competition Risks

Competition in the automotive parts industry is becoming increasingly fierce, especially with the continuous increase in participants in the new energy sector. If the company cannot maintain advantages in technology and cost, it may face risks such as declining product bargaining power and falling gross margins. The company will continue to strengthen technological innovation and achieve cost reduction and efficiency improvement through refined management to consolidate its core competitiveness.

Compensation Situation of Directors, Supervisors, and Senior Management

In 2025, the total compensation for key management personnel was 7.8282 million yuan, a decrease from 10.2186 million yuan the previous year. Among them, Chairman Ding Houwen reported a total pre-tax compensation of 0 yuan from the company during the reporting period, as his compensation was mainly received from related parties; General Manager Zhao Zheng’s total pre-tax compensation was 1.6548 million yuan; Vice General Manager Cui Longfeng’s total pre-tax compensation was 1.5441 million yuan, and Gao Dejun’s total pre-tax compensation was 1.3923 million yuan; Chief Financial Officer Li Pengyong had not received any compensation from the company during the reporting period due to his later appointment. The overall compensation system is linked to the company’s performance and individual job performance, reflecting the principle of balancing incentives and constraints.

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Editor: Xiaolang Express Report