Chaoying Electronics 2025 Annual Report Analysis: Revenue increased by 15.25% to 4.752 billion yuan, net profit decreased by 16.24%

Core Revenue Metric Interpretation

Operating Revenue: Steady Growth in Scale, Reaching a Record High

In 2025, Yoying Electronics achieved operating revenue of 475,233.996232 million yuan, up 15.25% year over year from 412,361.695732 million yuan in 2024, setting a new historical high. The growth was mainly driven by the steady expansion of its business scale, especially strong demand in the HDI market. Growth momentum remained robust in areas including storage devices, network communications and servers, as well as computers and interface equipment, supported by major customer demand.

Judging from quarterly data, revenue rose quarter by quarter:

Net Profit: Hit by Thailand Factory Drag, Year-on-Year Decline

In 2025, the net profit attributable to shareholders of listed companies was 23,134.967077 million yuan, down 16.24% year over year from 27,621.732425 million yuan in 2024; total profit was 26,705.722381 million yuan, down 18.81% year over year. The decline in net profit was mainly because the Thailand Yoying factory was in the capacity ramp-up stage. Capacity utilization did not meet expectations, production costs were higher, and the business was still in a loss position.

Quarterly net profit fluctuated significantly. In the fourth quarter alone, it recorded only 1,973.076853 million yuan:

Non-GAAP Net Profit: The Decline Is Larger Than That of Net Profit

Non-GAAP net profit attributable to shareholders of listed companies (after deducting recurring non-operating gains and losses) was 20,451.801736 million yuan, down sharply 21.52% year over year from 26,059.656410 million yuan in 2024. The magnitude of decline exceeded that of net profit, reflecting that the pressure on the profitability of the company’s core operating business was more pronounced.

The quarterly trend of non-GAAP net profit matches that of net profit:

Earnings per Share: Declining in Step with Net Profit

Basic earnings per share were 0.59 yuan/share, down 18.06% year over year from 0.72 yuan/share in 2024. Basic earnings per share after deducting non-recurring gains and losses were 0.52 yuan/share, down 23.53% year over year from 0.68 yuan/share in 2024, matching the decline in non-GAAP net profit.

In-Depth Breakdown of Period Expenses

Total Expenses: Clear Structural Divergence

In 2025, the company’s total period expenses were 615,785,062.07 million yuan. Changes across expense categories were notably differentiated: selling expenses management produced results and declined significantly, while management, financial, and R&D expenses all increased to varying degrees.

Selling Expenses: Strong Control, Down 20% Year Over Year

Selling expenses were 10,623.552477 million yuan, down 20.17% year over year from 13,308.462 million yuan in 2024. The decrease was mainly due to the company continuously strengthening expense management, improving business coordination capabilities, and effectively compressing selling-side expenditures.

Administrative Expenses: Thailand Factory Pushes Up Costs

Administrative expenses were 27,473.219484 million yuan, up 8.49% year over year from 25,323.904876 million yuan in 2024. The increase was mainly attributable to additional management costs after the Thailand factory started production, which pulled up the overall expense scale.

Financial Expenses: Interest Expense Jumps by More Than 50%

Financial expenses were 7,228.67378 million yuan, up significantly 52.11% year over year from 4,752.12912 million yuan in 2024. The increase was mainly due to a rise in interest expense during the reporting period, reflecting that the company’s debt financing scale and/or financing costs may have increased.

R&D Expenses: Continued Increase in Innovation Investment

R&D expenses were 16,253.060466 million yuan, up 20.37% year over year from 13,502.834077 million yuan in 2024. The company increased R&D investment mainly for technical breakthroughs in areas such as high-end AI products and automotive electronics, including processing of M9-grade material and multilayer PCB processes of 50 layers and above.

R&D Team and Technical Reserves

R&D Personnel and Technical Strength

By the end of the reporting period, the company established a professional R&D team through internal cultivation and external recruitment, developing a “knowledge management system” to facilitate technology accumulation and learning. It has already mastered multiple core technologies, including high-frequency millimeter-wave radar boards, high-speed server flash memory motherboards, and DDR5 product manufacturing. It is also advancing frontier technology R&D such as N+M+N design and TLPS processes, and has累计 obtained multiple invention patents. The company’s R&D is oriented toward customer needs, aiming to secure high-end orders through technological innovation and lay the foundation for future expansion in emerging fields such as AI and new energy vehicles.

Cash Flow Panorama Analysis

Operating Cash Flow: Procurement Payments Drag the Decline

Net cash flow from operating activities was 41,272.906102 million yuan, down 31.87% year over year from 60,580.012286 million yuan in 2024. The main reason was that during the reporting period, cash paid for purchasing goods and receiving labor services increased, and the cash increment brought by revenue growth failed to cover the expansion of cash outflows at the procurement side.

Operating cash flow also declined quarter by quarter:

Investing Cash Flow: Continuous Capacity Expansion Investment Increases

Net cash flow from investing activities was -151,135.828205 million yuan, with a further expansion of the net outflow scale compared with -128,490.0213 million yuan in 2024. The main reason was that during the reporting period, the company continued to invest in the purchase and construction of long-term assets, and in particular, capacity construction for the Thailand factory was still being advanced.

Financing Cash Flow: Fundraising and Borrowings Provide Dual Support

Net cash flow from financing activities was 156,605.571799 million yuan, up sharply 170.20% year over year from 57,959.99223 million yuan in 2024. The main reason was that during the reporting period, the company obtained raised funds and increased long-term borrowings, providing capital support for the company’s capacity expansion and operations.

Company Potential Risk Alerts

Capacity Ramp-Up and Profitability Risk

The Thailand factory is currently in the capacity ramp-up stage and has not yet become profitable. If capacity utilization increases less than expected and/or the certification progress of high-end customers slows down, it will continue to weigh down the company’s overall profits. At the same time, the high costs in the initial stage of factory production will also suppress gross margin levels. Although the company expects that gross margins will improve after high-end AI products reach mass production in the second half of 2026, there are still uncertainties.

Raw Material and Supply Chain Risk

The PCB industry is sensitive to price fluctuations of raw materials such as copper foil and copper-clad laminates. If upstream raw material prices continue to rise and the company cannot pass costs down to downstream customers in a timely manner, it will further compress profit space. In addition, high-end HDI base materials and high-end processing equipment still rely on imports, creating risks of supply chain disruption or cost increases.

Industry Competition and Technology Iteration Risk

Global PCB industry technology iteration is accelerating under AI-driven demand. If the company cannot continuously keep up with technology upgrades in areas such as high-end AI server PCBs and automotive electronics PCBs, or fail to respond to changes in customer needs in a timely manner, it may lead to a decline in product competitiveness and the loss of market share in high-end segments.

Compensation of Executives and Supervisors

During the reporting period, the total pre-tax compensation of chairman Huang Minghong was 1.083 million yuan, the total pre-tax compensation of general manager Qiu Chuming was 0.968 million yuan, and the total pre-tax compensation of deputy general manager Chen Renqun was 0.856 million yuan. The total pre-tax compensation of the CFO Qiu Chuming (the same person as the general manager) was also 0.968 million yuan. Overall compensation levels are basically in line with other PCB companies of similar scale in the industry, matching the company’s performance and the responsibilities of management.

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