Tongda Co., Ltd. 2025 Annual Report Analysis: Non-GAAP Net Profit Increased by 73.29%, Operating Cash Flow Doubled

Operating Revenue: Product Mix Adjustment Drives 6.57% Growth

In 2025, the company achieved operating revenue of 397,941,044.90 yuan, up 6.57% year over year. The main drivers of revenue growth were notable adjustments to the product mix:

• Revenue from superfine fiber base fabric totaled 154,509,060.23 yuan, up significantly by 69.93% year over year; its share rose from 24.35% in 2024 to 38.83%, making it the largest source of revenue;
• Revenue from superfine fiber suede finish leather totaled 83,950,124.96 yuan, down 31.54% year over year; its share fell from 32.84% to 21.10%;
• Revenue from superfine fiber gloss finish leather totaled 137,488,050.01 yuan, down slightly by 1.97% year over year; its share was 34.55%. By region, domestic revenue was 265,488,995.24 yuan, up 17.62% year over year; overseas revenue was 132,452,049.66 yuan, down 10.31% year over year. The domestic market became the core support for growth.

Net Profit: Improvements in Core Operations Drive 33.58% Growth

In 2025, net profit attributable to shareholders of listed companies was 11,220,917.08 yuan, up 33.58% year over year. Non-GAAP net profit was 9,819,960.43 yuan, up sharply by 73.29% year over year. The growth rate of non-GAAP net profit far exceeded that of net profit, indicating that profitability in core operations improved significantly. Total non-recurring gains and losses were 1,400,956.65 yuan, mainly including government grants of 1,282,742.92 yuan and gains from the disposal of trading financial assets of 260,493.83 yuan.

Earnings Per Share: Rising in Step with Profitability

In 2025, basic earnings per share were 0.1264 yuan per share, up 33.62% year over year; non-GAAP earnings per share were 0.1106 yuan per share, up 73.02% year over year. The increase in earnings per share matched the growth rates of net profit and non-GAAP net profit, reflecting a synchronized improvement in shareholders’ returns driven by the company’s earnings growth.

Expenses: Financial Expenses Jump Significantly as the Main Change

Sales Expenses: Down 7.80% as Scale Contracts

Sales expenses decreased 7.80% year over year, mainly because sales commissions fell from 550,965.10 yuan to 208,484.42 yuan. At the same time, expenses such as loading/unloading fees and rental fees also declined to varying degrees, showing the effectiveness of the company’s cost controls on the sales side.

Administrative Expenses: Mild Growth of 5.98%

Administrative expenses increased 5.98% year over year. The main driver was that consulting service fees rose from 1,381,868.24 yuan to 1,947,054.25 yuan, and business entertainment expenses rose from 405,325.41 yuan to 642,269.47 yuan. The combined increase of these two items was 802,110.07 yuan, making it the main reason for the growth in administrative expenses.

Financial Expenses: Up 72.37% Year over Year

Financial expenses increased 72.37% year over year, mainly because interest income fell from 4,801,344.10 yuan to 2,232,323.79 yuan, and foreign exchange gains turned into foreign exchange losses of 363,880.94 yuan. These two factors led to a significant increase in financial expenses.

R&D Expenses: Stable Investment, Up 2.64%

R&D expenses increased 2.64% year over year. Among them, employee compensation rose from 5,417,108.50 yuan to 6,651,224.51 yuan, an increase of 1,234,116.01 yuan. Meanwhile, consumed materials fell from 7,027,139.21 yuan to 6,013,194.95 yuan, a decrease of 1,013,944.26 yuan. Overall R&D investment remained stable, with a greater focus on R&D personnel compensation.

R&D Personnel Profile: Stable Team, Optimized Structure

In 2025, the number of R&D personnel was 90, unchanged from 2024. This accounted for 16.79% of total employees, up slightly by 0.09 percentage points. By age structure, the number of R&D personnel aged 30–40 increased from 41 to 44, raising their share; the number of R&D personnel under age 30 decreased from 5 to 3, and the overall team became more mature and stable.

Cash Flow: Operating Cash Flow Doubles; Investing Activities See Large Fluctuations

Operating Cash Flow: Doubles to 9.49 Million

Net cash flow from operating activities increased 99.39% year over year. This was mainly because cash paid for purchasing goods and receiving labor services fell from 208,753,954.62 yuan to 188,294,605.93 yuan. The decline was greater than the decline in cash received from selling goods, resulting in a significant increase in net cash flow from operating activities. This reflects the effectiveness of the company’s cash management on the procurement side.

Investing Cash Flow: Net Amount Narrows Significantly

Net cash flow from investing activities increased 95.33% year over year. The main reason was that in 2025, the company received cash of 240,260,493.83 yuan from the recovery of investments, whereas in 2024 there was no related income. At the same time, expenditures for purchases and construction of fixed assets, etc. fell from 33,809,005.43 yuan to 2,513,774.81 yuan, significantly reducing overall cash outflow pressure from investing activities.

Financing Cash Flow: Net Amount Turns Negative Due to Dividends

Net cash flow from financing activities was -3,818,398.80 yuan, mainly because in 2025 the company conducted a distribution of dividends and paid cash dividends of 3,818,398.80 yuan, while in 2024 there were no related expenditures.

Potential Risks Faced

Risk of Foreign Exchange Rate Fluctuations

The company’s export business accounts for 33.28%. At the same time, some raw materials rely on imports, so fluctuations in the RMB exchange rate will directly affect the pricing of exported products and the cost of imported raw materials. The company responds by expanding the domestic market, using hedging tools, and developing high value-added products, among other measures. However, the uncertainty caused by exchange rate fluctuations will still affect profitability.

Risk of Bad Debts on Accounts Receivable

At the end of 2025, the balance of accounts receivable was 96,999,124.84 yuan, up 25.46% year over year, accounting for 24.38% of operating revenue. Although the company’s major customers are high-quality customers with long-term cooperation, if a customer’s financial condition deteriorates, there is still a risk of bad debts. The company addresses this by improving credit management and strengthening collection mechanisms, but the growth in the size of accounts receivable still needs to be continuously monitored.

Risk of Core Technology and Personnel Loss

The company’s core competitiveness depends on technology accumulation and professional personnel. If core technology is leaked or core personnel leave, it will affect the company’s innovation capability and profitability. The company responds by optimizing compensation and incentives and improving training systems, but pressure in talent competition remains long-term.

Risk of Production Operations and Product Quality

The company’s product manufacturing processes are complex. Equipment failures, defects in raw materials, and other issues may lead to product quality problems, which in turn may affect customer cooperation and the company’s reputation. The company addresses this by improving quality control systems and strengthening equipment maintenance, but uncertainty in the production process cannot be completely eliminated.

Compensation for Senior Management and Directors/Supervisors: Chairman’s Pre-Tax Compensation Is 956,600 Yuan

During the reporting period, Chairman Kou Xiangdong’s pre-tax compensation was 956,600 yuan, General Manager Xu Xuri’s was 876,600 yuan, and Vice General Managers Li Yanxia and Zhang Tong were 714,000 yuan and 654,000 yuan, respectively. The compensation levels are basically in line with the company’s profitability scale and the industry level. At the same time, during the reporting period, the company’s directors, supervisors, and senior executives all reduced their holdings of some shares.

Click to view the original announcement>>

Disclaimer: There are risks in the market; invest cautiously. This article is automatically published by an AI large model based on third-party databases and does not represent Sina Finance’s viewpoints. Any information appearing in this article is for reference only and does not constitute personal investment advice. If there are any discrepancies, please refer to the actual announcement. If you have any questions, please contact biz@staff.sina.com.cn.

Large amounts of information and precise analysis—available on the Sina Finance app

责任编辑：小浪快报