Antai Technology 2025 Annual Report Analysis: Profit After Deducting Non-Recurring Items Increased by 38.16%, Financial Expenses Rose by 90.75% Year-over-Year

Operating Revenue: 4.73% Steady Growth, Business Structure Optimized

In 2025, Aitai Technology achieved operating revenue of RMB 7.932 billion, up 4.73% year over year, compared with RMB 7.573 billion in 2024, representing a steady increase. By product segment, revenue from advanced functional materials and devices was RMB 3.096 billion, up 10.47% year over year, with its share rising to 39.04%; revenue from high-quality special steel and welding materials was RMB 1.859 billion, up 12.59% year over year, with its share rising to 23.43%; revenue from special powder metallurgy materials and products was RMB 2.977 billion, a marginal increase of 0.51% year over year, with its share declining somewhat. By region, domestic market revenue was RMB 5.922 billion, up 7.50% year over year, with its share rising to 74.67%, becoming the core driver of growth; overseas market revenue was RMB 2.009 billion, down 2.67% year over year, with its share falling to 25.33%.

Net Profit: Parent-Attributable Slight Decline, Non-GAAP Surges Significantly; Profitability Improves

In 2025, the company’s net profit attributable to shareholders of listed companies was RMB 365 million, down slightly by 2.02% year over year; however, net profit excluding non-recurring gains and losses reached RMB 322 million, up significantly by 38.16% year over year, showing a notable improvement in profitability. Regarding non-recurring gains and losses, the company’s total non-recurring gains and losses in 2025 were RMB 43.0254 million, a substantial decrease from RMB 139 million in 2024. The main reason was that gains from disposal of non-current assets dropped from RMB 113 million to -RMB 1.8874 million, while government grants increased from RMB 27.4783 million to RMB 55.7338 million, which, to a certain extent, offset the decline in disposal gains.

Earnings Per Share: Basic EPS Slightly Down; Non-GAAP EPS Jumps Clearly

In 2025, basic earnings per share were RMB 0.3509 per share, down 2.80% year over year; non-GAAP earnings per share were RMB 0.3064 per share, up 38.09% year over year. This is consistent with the growth trend of non-GAAP net profit, reflecting an improvement in the profitability level of the company’s core business.

Expenses: Total Slightly Down; Clear Divergence in Structure

In 2025, the company’s total period expenses were RMB 96,714.08 million, down 5.38% year over year from RMB 102,215.43 million in 2024, showing effectiveness in expense management. However, changes in different expense items varied significantly:

R&D Personnel and Investment: Headcount Slightly Down; Structure Optimized; Investment Remains Stable

R&D Personnel Overview

In 2025, the number of R&D personnel at the company was 816, down slightly by 0.73% year over year, but the proportion of R&D personnel increased from 16.29% to 16.87%. In terms of educational background, the proportion of R&D personnel with a bachelor’s degree or above increased. Specifically, the number of master’s-degree R&D personnel increased from 197 to 242, up 22.84% year over year; the number of bachelor’s-degree R&D personnel increased from 335 to 381, up 13.73% year over year. The education levels of the R&D team continued to improve. In terms of age structure, the number of R&D personnel aged 30–40 decreased from 421 to 357, down 15.20% year over year; R&D personnel under age 30 decreased slightly by 3.04%. Overall, the R&D team has become more mature.

R&D Investment Overview

In 2025, R&D investment was RMB 51,955.78 million, down slightly by 0.07% year over year. R&D investment as a percentage of operating revenue was 6.55%, slightly lower than 6.87% in 2024, but it still remains at a relatively high level. The amount of R&D capitalization was RMB 65.55 million, up 93.13% year over year. The capitalization rate was 0.13%, up 0.06 percentage points from the previous year, indicating that the efficiency of converting R&D results improved.

Cash Flow: Operating Cash Flow Steady; Investing and Financing Cash Flows More Volatile

In 2025, the net increase in cash and cash equivalents was -RMB 263 million, down 266.98% year over year from RMB 157 million in 2024, mainly due to a substantial net cash outflow from financing activities:

Potential Risks

Risk of Demand Falling Short of Expectations

In 2026, the global economy is expected to recover weakly. The IMF predicts the global economy will grow only 3.3% for the full year. Repair of consumption confidence domestically and internationally is lagging, and disruptions to the industrial chain, together with artificial intelligence substitution, will lead to a contraction in demand for intermediate goods, resulting in a market characterized by “insufficient total volume and differentiated structure.” The company’s operating performance may face pressure. The company will build a new coordinated marketing mechanism, coordinate the layout of domestic and international businesses, and accelerate digital transformation to respond to market volatility.

Risk of Fluctuations in Raw Material Prices

The supply of strategic minor metals such as rare earths and tungsten is highly concentrated. Tightening of mining quotas and longer expansion cycles, together with the surge in demand from strategic emerging industries, create a risk of raw material prices experiencing high-level volatility. Since raw materials account for a relatively high proportion of the company’s product costs, this will affect operating performance with uncertainty. The company will improve procurement management systems, expand digital procurement platforms, build a safe and stable supply chain system, and mitigate the risk of price fluctuations.

Risk of International Trade Environment and Exchange Rate Fluctuations

The United States frequently adjusts its tariff policies. The expected growth rate of global goods trade is only 0.5%. The RMB may show “two-way volatility under relative resilience.” The company’s export business faces risks of reduced settlement gains and increased tariff costs. The company will strengthen the construction of overseas sales networks, enhance its assessment of foreign exchange rate trends, use instruments such as forward settlement and sale/repurchase of foreign exchange to lock in exchange rates, and reduce foreign exchange losses.

Compensation of Directors, Supervisors, and Senior Executives

In 2025, the chairman, Li Junfeng, had total pre-tax remuneration of RMB 816,000; the general manager, Bi Lingsheng, had total pre-tax remuneration of RMB 816,000; the deputy general managers, Chen Zhe, Liu Jingsong, and Liu Tao, had total pre-tax remuneration of RMB 711,100, RMB 759,400, and RMB 27,600 respectively (Liu Tao was appointed in December 2025, and the remuneration is only for the portion of that month); the financial director, Wang Linlin, was appointed in December 2025 and did not receive remuneration from the company during the reporting period. Compensation of directors, supervisors, and senior executives is linked to the company’s operating performance and the fulfillment of individual responsibilities. The compensation decision-making process complies with relevant procedures, and the remuneration is determined based on the company’s operating performance and management performance evaluation results.

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