Haili Co., Ltd. 2025 Annual Report Analysis: Net profit attributable to parent company increases by 112.18%, operating cash flow decreases by 28.27%

Significant Growth in Core Profitability Indicators

During the reporting period, Haili Co., Ltd. delivered strong performance on the profit side, with multiple key indicators achieving substantial growth.

The company’s revenue growth is mainly driven by the replacement-of-old-for-new policy boosting demand in the air-conditioner market; sales of its main business related to heating and cooling increased against the trend, and sales of its rotor-type compressors reached 48.18 million units, up 29% year over year. Overseas sales exceeded 10 million units. The automotive parts main business significantly reduced losses; sales of electric compressors for new energy vehicles increased by over 100% year over year. The synergy of the two main businesses drove an improvement in performance.

Cost Structure Shows Divergence

The company’s period expenses show a divergent trend: selling expenses increased significantly, while financial expenses decreased noticeably.

R&D Investment Grows Steadily

During the reporting period, the company continuously increased its R&D efforts. Full-year R&D expenses were 1.014 billion yuan, up 8.48% year over year. R&D investment accounted for 4.95% of operating revenue. The company has developed independent R&D capabilities across multiple fields, such as mechanical technology, motor technology, and control technology. Cumulatively, it has filed 3,645 domestic patent applications, including 1,457 invention patents; cumulatively, it has been granted 2,340 patents, including 429 invention patents. Meanwhile, it has advanced a pilot of IPD project management, built a shared technology platform, and carried out industry-university-research cooperation with Shanghai Jiao Tong University and Xi’an Jiao Tong University, laying a solid technological foundation for long-term development.

Cash Flow Shows Structural Changes

The company’s cash flows have shown clear structural changes: operating cash flow fell sharply, investment cash flow outflows narrowed, and financing cash flow outflows expanded.

Compensation of Executives and Supervisors

During the reporting period, compensation for the company’s core management was as follows:

• Chairman Li Yilong’s pre-tax total compensation: specific data not disclosed
• General Manager Li Yilong’s pre-tax total compensation: specific data not disclosed
• Vice General Manager’s pre-tax total compensation: specific data not disclosed
• CFO Yan Yuan’s pre-tax total compensation: specific data not disclosed

Multiple Risk Warnings

Industry Environment Risk

The overall scale of the household air-conditioner industry decreased by 3.1% year over year; sales volume in the rotor-type compressor industry decreased by 2.8% year over year, and industry competition intensified. Although the automotive industry grew overall, factors such as fluctuations in overseas markets and the phase-out of subsidies for new energy vehicles may affect demand.

Technology Risk

As refrigeration and automotive thermal management technologies iterate faster, if the company’s R&D investment is insufficient or if it makes an incorrect judgment on its technology route, it may lead to a decline in product competitiveness.

Risk of Transactions with Counterparties

The company has a high dependency on upstream and downstream counterparties. If operational issues arise with key customers or suppliers, it may affect the company’s production and sales.

Litigation Risk

During the reporting period, other-than-operating expenses increased by 136.71% year over year, mainly due to an increase in additional tax payments. In the future, the company may face litigation risks related to taxation, contracts, and other matters.

Risk to Profitability

Although the company’s net profit after deducting non-recurring items has turned positive, the profit scale is still small. If the industry environment deteriorates or cost control is not effective, losses may occur again.

Risk of Goodwill Impairment

The company acquired Haili Maruili to form goodwill. If the future performance of the underlying assets fails to meet expectations, the company may face a risk of goodwill impairment.

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Responsible editor: Xiao Lang Express