Shuanglin Co., Ltd. 2025 Annual Report Analysis: Non-recurring Net Profit Increased by 36.63%, R&D Expenses Rose by 30.71%

Core Profitability Metrics Interpretation

Operating Revenue Grows Steadily

In 2025, the company achieved operating revenue of RMB 5.484 billion, up 11.67% year over year, continuing the growth trend since 2024. By business segment, the intelligent powertrain drive business generated revenue of RMB 3.270 billion, up 14.83%, and its share of total revenue increased to 59.63%, becoming the core engine of growth; the interior and exterior trim parts business generated revenue of RMB 1.946 billion, up 10.36%, maintaining stable contribution; other businesses generated revenue of RMB 0.260 billion, down 10.86% year over year, mainly due to adjustments in non-core businesses.

Profit Growth Slows, Non-GAAP Net Profit Performs Well

Net profit attributable to shareholders of the listed company was RMB 0.503 billion, up only 1.25% year over year, with a clearly slowed growth rate. The main reason is that in 2024 the company’s non-recurring gains and losses were RMB 171 million, while in 2025 they fell to RMB 57.24 million, down 66.4% year over year.

Non-GAAP net profit attributable to shareholders of the listed company was RMB 0.446 billion, up significantly 36.63% year over year. The growth rate far outpaced net profit, highlighting a substantial improvement in the company’s core operating profitability.

Earnings Per Share Remain Stable

Basic earnings per share were RMB 0.89 per share, consistent with the company’s adjusted figure in 2024; non-GAAP earnings per share were RMB 0.78 per share, up 36.63% year over year, consistent with the growth rate of non-GAAP net profit, reflecting an improvement in the quality of the company’s core earnings.

Deep Dive into Expense Structure

Total Period Expenses Rise Overall, R&D Spending Increases

In 2025, the company’s total period expenses amounted to RMB 0.627 billion, up 16.32% year over year, with a growth rate faster than revenue.

R&D Team Expands, Structure Optimizes

In 2025, the company had 811 R&D personnel, up 27.72% year over year. The proportion of R&D staff among total employees increased from 13.18% to 16.58%. The educational structure improved significantly: the number of R&D personnel with master’s degrees increased from 20 to 66, up 230% year over year; the number with bachelor’s degrees increased from 202 to 273, up 35.15% year over year. The age structure became even younger: R&D personnel under 30 increased from 119 to 212, up 78.15% year over year, injecting fresh momentum into the company’s innovation.

Cash Flow and Financing & Investment Analysis

Operating Cash Flow Continues to Improve

In 2025, net cash flow from operating activities was RMB 0.7814 billion, up 16.44% year over year. It has continued to grow for three consecutive years and its growth rate outpaced revenue. This was mainly driven by improved cash collection from core businesses and higher turnover efficiency of accounts payable after optimizing supply chain management.

Investment Activities See Significant Net Cash Outflow

Net cash flow from investing activities was RMB -0.5544 billion, down 411.84% year over year. The main reasons are: first, payment of RMB 135 million to acquire Wuxi Kezhixin Mechanical Technology Co., Ltd.; second, increased investment for the construction of a Thai intelligent manufacturing base and the purchase of fixed assets; third, in 2024 the company received Jinshi performance compensation, and there were no such large inflows in 2025.

Financing Activities’ Cash Flow Pressure Eases

Net cash flow from financing activities was RMB -0.1772 billion, down 56.05% year over year, with the cash flow pressure clearly easing. Mainly due to improved operating cash flow, lower external financing needs, repayments of part of maturing debts, and cash inflow supplemented by employee equity incentive payments.

Risk Warnings and Executive Compensation

Key Risk Factors

2. Macroeconomic and Policy Risks: The auto industry is significantly affected by macroeconomic cycles. If the economy turns downward or new energy vehicle subsidy policies are adjusted, it will affect the company’s business; the U.S. tariff increase policy may raise export costs and intensify uncertainty in market competition.
3. Risk of Raw Material Prices: Fluctuations in the prices of raw materials such as plastics and steel will directly affect the company’s manufacturing costs. Although the company responds through strategic procurement and cost control, there is still pressure for costs to rise.
4. Product Pricing Risk: Competition in the auto industry is intense. If full vehicle manufacturers’ price-cutting pressure is transmitted to upstream component enterprises, it may compress the company’s profit margins.

Executive Compensation

In 2025, the total compensation for company executives increased 71.62% year over year, mainly because the company’s performance improved, core management compensation is strongly linked to performance, and additional executive personnel were added. Specific core executives’ pre-tax compensation is as follows:

• Chairman and General Manager Wu Jianbin: RMB 1.5696 million
• Executive Vice President Zhang Zisheng: RMB 1.9006 million
• Vice President Chen Youfu: RMB 1.4666 million
• Vice President Ge Haian: RMB 1.6653 million
• Vice President Qian Xueming: RMB 1.4867 million
• Vice President Wei Yong: RMB 1.1570 million
• Financial Controller Wu Huaiying: RMB 0.4639 million
• Board Secretary Zhu Liming: RMB 0.9847 million

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Responsible editor: Xiao Lang Express