AIA Ceiling Tiles 2025 Annual Report Analysis: Revenue Down 20.24%, Turning Losses into Profits, Net Profit of 12.37 million yuan

Key Profitability Indicators: Turnaround to Profit Amid Revenue Contraction

Operating Revenue: Down 20.24% Year over Year to RMB 498.0 Million

In 2025, Awingdang Ceilings achieved operating revenue of RMB 498,017,917.68, down 20.24% year over year from RMB 624,370,799.57 in 2024. By product category, revenue across all product lines saw declines to varying degrees: the auxiliary module category had the largest drop, reaching 26.26%; the gypsum board module fell directly from RMB 41,397.82 in 2024 to 0; the functional module, basic module, and wall cabinet module declined by 19.77%, 20.09%, and 16.43%, respectively.

By channel, engineering channel revenue fell in a “cut-in-half” manner, down 40.64%, which was the main drag on the overall revenue decline; revenue from dealer and end-customer channels fell 13.83%, showing relatively greater resilience. By region, revenue in Northeast China dropped 34.64%; declines in Southwest, Northwest, and Central China were also all above 20%, while only South China saw a decline below 10%.

Net Profit: Turnaround to Profit, Reaching RMB 12.37 Million

In 2025, the company achieved net profit attributable to shareholders of the listed company of RMB 12,370,464.03, turning around from the net loss of RMB -112,257,067.36 in 2024 to a profit. Net profit attributable to shareholders of the listed company after excluding non-recurring items was RMB 9,493,900.69, which also achieved a turnaround; the figure for the same period in 2024 was RMB -111,682,469.38.

Earnings per Share: From Negative to Positive

In 2025, basic earnings per share were RMB 0.10 per share; earnings per share after excluding non-recurring items were RMB 0.07 per share. Both turned around to profit. In the same period of 2024, basic earnings per share and earnings per share after excluding non-recurring items were RMB -0.86 per share and RMB -0.86 per share, respectively.

Expense Control: Multi-Dimensional Cost Reductions, Sales Expenses Down Nearly Half

Total Expenses: Down 28.72% Year over Year

In 2025, the company’s total expenses (sales + administration + finance + R&D) totaled RMB 96,866,202.80, down 28.72% year over year from RMB 135,990,759.99 in 2024, showing significant effects from expense control.

Sales Expenses: Down 47.63%, With Staff Compensation as the Core Reduction Target

Sales expenses fell from RMB 869 million in 2024 to RMB 455 million, a decrease of 47.63%. The primary reason was a reduction in sales personnel, which simultaneously reduced personnel compensation and travel expenses, as well as reduced items such as service fees. In 2024, marketing staff wages were RMB 44,178,309.68. In 2025, this item was not disclosed separately, but judging by the overall decline, personnel-related expenditures were reduced significantly.

Administrative Expenses: Down 14.24%, Cutting Non-Essential Spending

Administrative expenses decreased 14.24% year over year. The company mainly achieved this by reducing business entertainment expenses, vehicle expenses, travel expenses, and more: in 2025, business entertainment expenses were only RMB 1,319,693.63, down sharply by 66.21% from RMB 3,905,719.92 in 2024; vehicle expenses decreased from RMB 3,820,040.02 to RMB 2,083,533.77, a decline of 45.46%; travel expenses fell from RMB 635,741.71 to RMB 410,385.49, a decrease of 35.45%.

Finance Expenses: Net Increase Due to Lower Interest Income

Finance expenses (net) were RMB -6,060,856.87, up 17.25% year over year from RMB -7,324,048.28 in 2024. The main reason was lower interest income: in 2025, interest income was RMB 6,763,245.65, down RMB 1,888,413.70 from RMB 8,651,659.35 in 2024.

R&D Expenses: Down 29.68%, Primarily Due to Fewer R&D Personnel

R&D expenses fell from RMB 286 million in 2024 to RMB 201 million in 2025, a decrease of 29.68%. The main reason was a reduction in R&D personnel, which also reduced personnel compensation expenses. In 2025, labor wages were RMB 14,564,547.98, down RMB 4,983,320.54 from RMB 19,547,868.52 in 2024, a decline of 25.50%.

R&D Personnel: Headcount Reduced by More Than 20%

In 2025, the company had 62 R&D personnel, down 17 from 79 in 2024, a decline of 21.52%. By education level, the number of undergraduate, master’s, and other-education personnel decreased by 7, 1, and 9, respectively; by age composition, the number of personnel aged below 30 decreased by 8, a decline of 47.06%, and the number of personnel aged 30–40 decreased by 9, a decline of 23.68%.

Cash Flow: Operating Cash Flow Improves Significantly; Investing Cash Flow Pressured

Overall Cash Flow: Net Decrease in Cash and Cash Equivalents of RMB 44.16 Million

The company’s net increase in cash and cash equivalents in 2025 was RMB -44,163,480.19, improving 75.82% year over year compared with RMB -182,674,317.13 in 2024.

Operating Cash Flow: Net Amount Narrows to RMB -25.06 Million, With Clear Improvement

Net cash flow from operating activities was RMB -25,056,905.58, improving 78.06% year over year from RMB -114,182,508.17 in 2024. The main reason was a decrease in payments for materials and taxes during the current period. Subtotal cash inflow from operating activities was RMB 598,533,974.38, down 22.07% year over year; subtotal cash outflow was RMB 623,590,879.96, down 29.32% year over year. Because the decline in the outflow side was greater than that in the inflow side, the net amount improved significantly.

Investing Cash Flow: Net Amount Falls to RMB -27.75 Million, With Increased Outflow Pressure

Net cash flow from investing activities was RMB -27,753,443.49, down 80.44% year over year compared with RMB -15,381,179.83 in 2024. The main reason was that, in the prior period, the company recovered its investment in the Dun Jun Xiang Ye fund, and there was no such large recovery in the current period. At the same time, the company paid RMB 94,516,008.56 for investments in the current period, compared with RMB 114,420,832.80 in 2024, showing a decrease. However, cash received from recovery of investments on the inflow side fell from RMB 101,074,143.99 to RMB 66,161,097.50, a larger decline, which resulted in net pressure.

Financing Cash Flow: Net Amount Turns Positive to RMB 8.65 Million, Easing Financing Pressure

Net cash flow from financing activities was RMB 8,646,868.88, improving 116.28% year over year compared with RMB -53,110,629.13 in 2024. The main reason was that, in the prior period, dividends were distributed and shares were repurchased; there were no such large-scale expenditures in the current period. Meanwhile, cash received from borrowings obtained in the current period was RMB 39,016,592.66, which increased significantly from RMB 11,110,000.00 in 2024, turning financing cash flow from negative to positive.

Executive Compensation: Core Management Compensation Ranges Remain Stable

Chairman’s Pre-Tax Remuneration: RMB 450,000

The total pre-tax remuneration received by Chairman Shi Xiong during the reporting period from the company was RMB 450,000, which aligns with the company’s overall profitability situation. In 2025, the company turned around to profit, and compensation remained stable.

General Manager’s Pre-Tax Remuneration: RMB 1.2001 Million

The total pre-tax remuneration received by General Manager Hu Jiang during the reporting period from the company was RMB 1.2001 million. He was the highest-paid person among the company’s management, reflecting the value of his core management responsibilities.

Deputy General Manager’s Pre-Tax Remuneration: RMB 325,200

The total pre-tax remuneration received by Deputy General Manager Wu Weijiang during the reporting period from the company was RMB 325,200. He also fulfilled the duties of the secretary to the board of directors in parallel, and his compensation level matches his job positioning.

Chief Financial Officer’s Pre-Tax Remuneration: RMB 376,100

The total pre-tax remuneration received by Chief Financial Officer Yu Haifeng during the reporting period from the company was RMB 376,100. He is responsible for the company’s financial controls, and his compensation matches the importance of his role.

Risk Warning: Five Major Risks to Watch

Risk of Regulatory Changes in the Real Estate Industry

Integrated ceiling demand is highly correlated with the real estate market. In recent years, the number of new home transactions has declined, creating significant pressure on the industry and the company’s business development. In 2025, the company’s engineering channel revenue fell sharply by 40.64%, which already reflects the impact of a downturn in the real estate market. If the real estate market remains sluggish going forward, the company’s revenue and profitability will face further pressure.

Risk of Dealer Management

The company mainly operates with a dealer store model. If the dealer team expands but the company’s management level does not improve accordingly, or if market changes cause management rules to no longer fit, it could affect the company’s performance and brand image. Although in 2025, revenue from the dealer and end-customer channels was better than that of the engineering channel, it still declined by 13.83%, so the stability of the dealer system should be monitored.

Risk of Fluctuations in Raw Material Prices

The company’s main raw materials are aluminum sheets and steel plates, and their prices fluctuate significantly due to changes in the metals market. If raw material prices rise sharply in the short term, it will directly squeeze the company’s gross profit margin and operating performance. In 2025, the company’s consolidated gross profit margin was 25.74%, slightly up from 24.81% in 2024, but fluctuations in raw material prices remain a potential risk.

Risk of Product Counterfeiting and Imitation

The company’s products are industry trend benchmarks and are often imitated or counterfeited. If such incidents occur in large numbers, they will damage the company’s brand image and operating performance. The effectiveness of the company’s intellectual property protection measures should be continuously monitored.

Risk of Seasonal Fluctuations in Performance

The integrated ceiling industry has a clear seasonality. The first half of the year—especially the first quarter—is the off-season, while the second half is the peak season. In the first quarter of 2025, the company achieved net profit of only RMB 2,171,421.27, accounting for 17.55% of full-year net profit. Seasonal fluctuations in performance may cause significant differences in the company’s cash flow and profitability across different quarters. Risks related to tight off-season funding and profit fluctuations should be watched.

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