Shenglan Co., Ltd. saw its 2025 revenue increase by 35.26%, while net profit rose by only 8.85%

Why is AI’s revenue soaring but net profit growing slowly?

Blue Whale News, April 2 — On April 2, Shenglan Co., Ltd. released its 2025 performance report. The data shows that the company achieved an operating revenue of 1.74B yuan in 2025, a year-on-year increase of 35.26%; net profit attributable to the parent company of 112 million yuan, up 8.85%; and net profit after deducting non-recurring gains and losses of 109 million yuan, an increase of 12.53%.

The total non-recurring gains and losses amounted to 3.0609 million yuan, accounting for 2.73% of net profit attributable to the parent company, mainly composed of government subsidies of 4.06M yuan and a reversal of 1.5028 million yuan from separate impairment tests.

Quarterly, in Q4 2025, the company achieved an operating revenue of 497 million yuan, net profit attributable to the parent of 9.0377 million yuan, and net profit after deducting non-recurring gains and losses of 5.3754 million yuan, accounting for 28.56%, 8.08%, and 4.94% of the annual figures, respectively.

The gross profit margin in manufacturing was 23.05%, down 0.81 percentage points year-on-year, mainly due to a 36.70% increase in operating costs, which exceeded the 35.26% growth in operating revenue, leading to a narrowing of net profit margin to 6.43%. Selling expenses reached 59.1644 million yuan, up 53.11% year-on-year, significantly higher than revenue growth, increasing from about 5.1% to 3.4% of revenue, exerting some dilution on overall profitability.

Net cash flow from operating activities was 143M yuan, up 24.42% year-on-year. Operating cash inflows and outflows increased by 23.28% and 23.17%, respectively, maintaining a basically synchronized rhythm, with overall cash flow quality remaining stable.

Product structure continues to focus on high-growth sectors. Revenue from consumer electronic connectors and components accounted for 60.35%, while revenue from new energy vehicle connectors and components rose to 24.47%, together making up over 80% of main business income. Domestic revenue accounted for 72.38%, and international revenue for 27.62%, with regional structure remaining stable and no obvious signs of contraction or expansion.

R&D investment was 95.5271 million yuan, up 14.05%, with R&D personnel increasing to 429, a rise of 26.18%, and R&D expense rate maintained at 5.49%.

In terms of dividends, based on 163.7M shares, the company distributed a cash dividend of 1.00 yuan (tax included) for every 10 shares, totaling 16.3705 million yuan in cash dividends.