Ningbo Ocean Year-End Report Analysis: Revenue increased by 15.86% to 6.107 billion, Operating Cash Flow rose by 29.47%

Revenue Interpretation

In 2025, Ningbo Ocean Shipping achieved operating revenue of 6,107,367,153.29 yuan (approximately 6.107 billion yuan), up 15.86% year over year from 5,271,538,477.37 yuan in 2024. By business segment, the transportation services segment’s revenue increased 20.42% year over year, mainly due to both higher cargo volumes and higher freight rates; the integrated logistics and agency services segment’s revenue decreased 6.59% year over year, due to lower service prices. For the full year, the company completed container transportation volume of 5.85 million TEU, up 14.04%; dry bulk transportation volume was 27.05 million tons, up 4.50%, with business scale expansion becoming the core support for revenue growth.

Net Profit Interpretation

During the reporting period, the company’s net profit attributable to shareholders of listed companies was 654,090,036.61 yuan (approximately 654 million yuan), up 18.12% year over year from 553,739,227.61 yuan in 2024. The growth rate was higher than the revenue growth rate, indicating an improvement in the company’s profitability efficiency. The increase in profit was mainly driven by the revenue growth resulting from higher transportation volume and higher pricing, as well as the effects of improved cost management. Operating costs increased 15.09% year over year, which was lower than the revenue growth rate.

Interpretation of Non-GAAP Net Profit

Net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses was 612,545,155.20 yuan (approximately 613 million yuan), up 16.96% year over year from 523,741,107.21 yuan in 2024. Non-recurring gains and losses mainly include government subsidies, gains or losses from disposal of non-current assets, etc. In 2025, total non-recurring gains and losses were 41,544,881.41 yuan, accounting for 6.35% of net profit. The company’s core operating business showed steady growth in earnings.

Interpretation of Basic Earnings Per Share

In 2025, basic earnings per share were 0.50 yuan per share, up 19.05% year over year from 0.42 yuan per share in 2024. The growth rate was higher than the increase in net profit, mainly because the company’s share capital did not undergo any significant changes, and the profit growth was directly transmitted to the level of earnings per share.

Interpretation of Non-GAAP Basic Earnings Per Share

Basic earnings per share after deducting non-recurring gains and losses were 0.47 yuan per share, up 17.50% year over year from 0.40 yuan per share in 2024. This roughly matches the growth rate of non-GAAP net profit, reflecting that the company’s main operating business provides stable support for earnings per share.

Overall Expense Interpretation

The company’s overall structure of period expenses changed somewhat. Administrative expenses increased year over year; financial expenses shifted from negative to positive; R&D expenses decreased slightly. The specific changes are as follows:

Interpretation of Selling Expenses

The annual report does not disclose selling expense-related data separately. Costs related to the company’s selling activities are either already included in the calculation of operating costs.

Interpretation of Administrative Expenses

In 2025, administrative expenses were 190,702,011.51 yuan, up 8.80% from 2024. The increase was mainly due to higher labor costs and professional service fees in the current period. As the company expands its business scale and advances more refined management, labor costs, professional consulting and other expenses have risen. Overall, the increase remains within a reasonable range.

Interpretation of Financial Expenses

Financial expenses changed from -40,365,846.05 yuan in 2024 (net gains) to 1,528,920.26 yuan in 2025 (net outflow). This was mainly due to an increase in foreign exchange losses. The company has a high proportion of international business, and foreign exchange fluctuations significantly affect financial expenses. In 2025, exchange rate movements reduced foreign exchange gains and even turned them into losses, which directly pushed up financial expenses.

Interpretation of R&D Expenses

R&D expenses in 2025 were 8,002,242.17 yuan, down 7.56% from 2024, mainly because R&D investment in the current period decreased. R&D investment totaled as a proportion of operating revenue was 0.13%, all of which was expensed and there was no capitalized R&D expenditure. The company’s R&D mainly focuses on areas such as green intelligent vessels and safety management systems. In 2025, the company added 2 national invention patents for vessel safety. While R&D investment declined, technical results continued to be produced.

Interpretation of R&D Personnel

As of the end of 2025, the company had 36 R&D personnel, accounting for 4.21% of the company’s total headcount. In terms of educational background, there were 5 master’s degree holders, 28 bachelor’s degree holders, and 3 junior college degree holders, with no PhD holders. The R&D team is mainly composed of people with bachelor’s degree or above. In terms of age structure, there were 15 people aged 30–40 and 9 people aged 40–50; mid-to-young professionals are the core force of the R&D team, and the team structure is relatively stable.

Overall Cash Flow Interpretation

In 2025, the company’s cash flow structure showed the characteristics of “a large net inflow from operating cash flow, a substantial net outflow from investing cash flow, and a small net inflow from financing cash flow.” The specific changes are as follows:

Interpretation of Cash Flow from Operating Activities

Net cash flow generated from operating activities was 1,406,780,142.66 yuan (approximately 1.407 billion yuan), up 29.47% from 2024. The growth rate was significantly higher than the increases in revenue and net profit. This was mainly due to higher cash collections driven by increases in business volume and freight rates; at the same time, the timing of cost payments remained relatively steady, and the company’s capability to generate operating cash improved significantly.

Interpretation of Cash Flow from Investing Activities

Net cash flow generated from investing activities was -1,486,025,230.82 yuan (approximately -1.486 billion yuan). The scale of net outflow expanded compared with 2024. This was mainly because payments for ship and container construction increased in the current period. In 2025, the company delivered and put into operation 8 1000TEU open-top container vessels, 2 740TEU pure electric container cargo ships Jishui, and signed construction for 4 2700TEU container vessels. The expansion of the fleet led to large capital expenditures.

Interpretation of Cash Flow from Financing Activities

Net cash flow generated from financing activities was 5,428,886.59 yuan (approximately 5.4289 million yuan). In 2024, it was a net outflow of 372 million yuan. The main reason was that the company paid less cash to repay debt in the current period. The company obtained a registered approval for the issuance of corporate bonds publicly in 2025, further broadening financing channels. At the same time, pressure from debt repayment eased somewhat, and financing cash flow shifted from negative to positive.

Interpretation of Potential Risks

Risk of Industry Cycle Volatility

The global container transportation market is affected by factors such as the pace of global economic recovery, geopolitical issues, and monetary policy. In 2025, China’s container export freight rate index (CCFI) fell by about 22.76% year over year in its full-year average, putting pressure on international freight rates. Although the domestic container transportation market saw some recovery, traditional main routes struggled to achieve strong cargo growth due to factors such as the sluggish real estate industry. The company’s proportion of international routes is approximately 12.82%. If global economic growth slows further, it will adversely affect the company’s international business revenue and profitability.

Risk of Fleet Capacity Expansion and Market Mismatch

In 2025, the company continued to advance fleet expansion; its container capacity exceeded 100,000 TEU, ranking it 24th among container liner companies globally. If future market demand growth falls short of expectations, the additional capacity may lead to lower berth/space utilization rates, diluting unit transportation earnings. At the same time, the costs of ship construction and operation are high, which will create pressure on the company’s cash flow and profitability.

Risk of Exchange Rate Fluctuations

The company’s international business involves settlement in multiple currencies. Financial expenses shifted from negative to positive in 2025 mainly due to increased foreign exchange losses. If the RMB exchange rate experiences significant fluctuations in the future, it will directly affect the company’s translated gains on foreign-currency assets and liabilities, thereby impacting profitability.

Risk of Green and Low-Carbon Transition

The shipping industry’s green and low-carbon transition is accelerating. The International Maritime Organization (IMO) has introduced multiple emission-reduction policies. The company needs to continuously invest funds for vessel energy-saving retrofits and the construction of new energy vessels, etc. If the transition progress lags, the company may face compliance risks and a decline in market competitiveness.

Interpretation of the Chairman’s Compensation

During the reporting period, the total pre-tax compensation received by Chairman Chen Xiaofeng from the company was 862,300 yuan. This level of compensation is basically in line with the company’s performance growth and industry compensation levels, reflecting that the company has aligned the interests of the company and the management with those of the operating team.

Interpretation of the General Manager’s Compensation

During the reporting period, the General Manager’s total pre-tax compensation was 793,500 yuan, slightly lower than the Chairman’s compensation. This is consistent with the compensation hierarchy setup in the company’s governance structure and is linked to the company’s operating performance, incentivizing management to improve operating efficiency.

Interpretation of the Deputy General Managers’ Compensation

The group of deputy general managers reported a pre-tax compensation total range of 543,200 yuan to 768,500 yuan during the reporting period. The compensation level matches their job responsibilities and performance contributions, forming a differentiated compensation and incentive system that helps stimulate the initiative of the management team.

Interpretation of the Chief Financial Officer’s Compensation

During the reporting period, the Chief Financial Officer’s total pre-tax compensation was 684,500 yuan. The compensation level matches the importance of the company’s financial management and control, reflecting recognition of the professional value of the finance executive, which helps ensure the safety of the company’s funds and sound financial operations.

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Responsible editor: Xiao Lang Express