Jifeng Co., Ltd. 2025 Annual Report Analysis: Operating Cash Flow Increased by 54.919 billion yuan, Net Profit Turned from Loss to Profit of 454 million yuan

Operating Revenue: Structural Differentiation Behind a Slight Increase

In 2025, the company achieved operating revenue of RMB 22.783 billion, a year-on-year increase of 2.37%. If the impact of the U.S. TMD company already sold is excluded, revenue increased 8.23% year over year, and the underlying momentum for real growth is more significant. By product category, the passenger car seat back business performed notably, achieving operating revenue of RMB 5.115 billion, up significantly by 76.65% year over year, becoming the core engine driving the growth in operating revenue; the commercial vehicle seat back business also maintained steady growth, with operating revenue of RMB 5.798 billion, up 7.29% year over year. Meanwhile, the traditional headrests, seat armrests, center consoles and other interior components businesses saw declines to varying degrees, down 11.67%, 22.35%, and 20.99% year over year, respectively, indicating that the company’s product structure is in a transition period between old and new growth drivers.

Net Profit and Non-GAAP Net Profit: Turning Loss into Profit Successfully

In 2025, the company realized net profit attributable to shareholders of listed companies of RMB 454 million, turning losses into profits year over year (RMB -567 million in 2024); non-GAAP net profit was RMB 411 million, also turning losses into profits (RMB -548 million in 2024). This is mainly attributable to the continued implementation of the company’s all-round cost reduction and efficiency improvement measures, as well as a substantial improvement in profitability brought about by the scale effects of the passenger car seat back business.

Earnings Per Share: From Negative to Positive

In 2025, the company’s basic earnings per share were RMB 0.36 per share, and its non-GAAP earnings per share were RMB 0.33 per share—both achieved the transition from negative to positive (basic EPS in 2024 was RMB -0.46 per share, and non-GAAP EPS was RMB -0.45 per share), reflecting a significant improvement in the quality of the company’s earnings.

Expense Control: Results are Remarkable, with a Particularly Notable Drop in Administrative Expenses

In 2025, the company’s four major expenses totaled RMB 3.039 billion, down 7.52% year over year; the expense ratio was 13.34%, down 1.43 percentage points year over year, showing strong results in expense management.

• Selling expenses: RMB 317 million, up 10.17% year over year, mainly due to increased investment in business expansion and market promotion.
• Administrative expenses: RMB 1.703 billion, down 19.06% year over year significantly, becoming the core highlight of expense control. This is mainly thanks to the implementation of measures such as streamlining processes, optimizing personnel structure, and reducing labor costs.
• Finance expenses: RMB 327 million, down 11.38% year over year, mainly due to the company optimizing its debt structure and reducing interest expense.
• R&D expenses: RMB 692 million, up 31.72% year over year, mainly because the passenger car seat back business’s scale grew and corresponding R&D spending increased. The company continues to increase R&D investment, building technical strength to support future business development.

R&D Personnel: Team Size Continues to Expand

As of December 31, 2025, the number of the company’s R&D personnel reached 1,434, accounting for 7.62% of the company’s total headcount. Among them, there were 137 people with a master’s degree or above, 893 with a bachelor’s degree, and 404 with a junior college degree or below; the education structure of the R&D team is fairly reasonable. From an age structure perspective, there were 621 R&D personnel aged 30–40, the largest proportion at 43.3%. The company’s R&D team as a whole is in a strong and energetic golden stage, providing solid talent support for the company’s technological innovation.

Cash Flows: Operating Cash Flow Grows Sharply, Financing Cash Flow Turns Negative

• Net cash flow from operating activities: RMB 1.750 billion, up 549.19% year over year significantly, mainly due to improved operating efficiency, increased operating profit during the current period, better collection of accounts receivable, and a marked improvement in cash flow quality.
• Net cash flow from investing activities: RMB -1.253 billion, down 21.00% year over year, mainly due to reduced spending on the purchase and construction of fixed assets, intangible assets, and other long-term asset expenditures, as well as increased cash inflows from investing activities.
• Net cash flow from financing activities: RMB -939 million, changing from RMB 2.156 billion in 2024 to net cash outflow, mainly because the cash inflow from a one-time directed share placement received in the previous year did not occur again this year, and the company net repaid borrowings during the current year; financing activities are becoming more cautious.

Potential Risks

2. Risk of fluctuations in the macroeconomic cycle: The company’s products are mainly used in the automobile industry. Both global economic cycles and China’s macroeconomic cyclical fluctuations will affect automobile production and consumption, thereby impacting the company’s operating performance.
3. Risk of declining product prices: Full-vehicle manufacturers have strong pricing power over component suppliers and will pass the pressure from price cuts upstream. If the company cannot offset the impact of product price declines through cost reduction and efficiency improvement, it will have an adverse effect on profitability.
4. Risk of fluctuations in major raw material prices: The proportion of the company’s direct material costs in production costs exceeds 70%. Fluctuations in commodity prices will affect the company’s ability to control production costs, thereby impacting the stability of profitability.
5. Technical risk: As electrification and intelligentization trends accelerate in the automotive industry, if the company cannot timely develop new products that meet market demand, it will face the risk of a decline in market share.
6. Risk of market competition: The global market for automotive parts is highly competitive. If competitors launch more competitive products or pricing strategies, the company’s market position may be challenged.
7. Foreign exchange risk: The company has a relatively high proportion of overseas business. Fluctuations in exchange rates will affect the stability of the company’s financial data. If the RMB appreciates significantly, it will compress profit margins from the company’s export products.

Compensation of Directors, Supervisors, and Senior Management

• Chairman Wang Yiping: The total pre-tax compensation received from the company during the reporting period was RMB 1.5543 million.
• General Manager Feng Dian: The total pre-tax compensation received from the company during the reporting period was RMB 1.3563 million.
• Deputy General Manager Liu Jie: The total pre-tax compensation received from the company during the reporting period was RMB 0.8418 million.
• Chief Financial Officer Zhang Sijun: The total pre-tax compensation received from the company during the reporting period was RMB 1.3460 million.

The compensation of directors, supervisors, and senior management is linked to the company’s performance. In 2025, the company turned losses into profits, and the compensation of directors, supervisors, and senior management also reflects the improvement in the company’s operating results.

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