Xinli Financial 2025 Annual Report: Operating Cash Flow Plummeted by 186.87%, Financing Cash Flow Increased by 179.94%

Operating Revenue: Steady Growth in Revenue Scale, Leasing Business Contributes Core Increment

In 2025, Xinli Financial achieved operating revenue of 352 million yuan, a year-on-year increase of 12.30%. Revenue scale delivered positive growth for two consecutive years, and the overall operating scale continued to expand. From the perspective of segment revenue, the financial leasing business contributed revenue of 236 million yuan, accounting for 67.03% of total revenue. It is the company’s most core source of income, with a year-on-year growth rate of 23.44%, becoming the core driver for overall revenue growth. Small-loan and pawn businesses achieved revenue of 69 million yuan and 23 million yuan respectively, with year-on-year growth rates of -3.62% and 28.15%. The rapid growth of the pawn business has become a new performance highlight. Software and information technology services and financing guarantee business revenue were 31 million yuan and 19 million yuan respectively, with year-on-year growth rates of -10.00% and -21.39%. They declined due to industry competition and business adjustments.

Net Profit: Profitability Level Improves Steadily, Non-Recurring Gains and Losses Have Limited Impact

In 2025, the company achieved net profit attributable to shareholders of listed companies of 35.6777 million yuan, up 14.49% year-on-year. Net profit after deducting non-recurring gains and losses was 34.4796 million yuan, up 14.62% year-on-year. The profit growth rate was higher than the revenue growth rate, and profitability continued to strengthen. Non-recurring gains and losses amounted to 1.1981 million yuan, having a small impact on net profit; the company’s profitability mainly comes from its core businesses. From the profit structure, the financial leasing business contributed net profit of 95 million yuan, the company’s most important profit source. The small-loan business contributed net profit of 29 million yuan. The guarantee and pawn businesses contributed net profit of 5 million yuan and 0.003 million yuan respectively. Software and information technology services contributed net profit of 15 million yuan. Dezhong Financial remained in a loss position, with a loss of 0.06 million yuan.

Earnings Per Share: Profit Indicators Improve in Tandem, Shareholder Return Capability Strengthens

In 2025, the company’s basic earnings per share was 0.07 yuan per share, up 16.67% year-on-year. Non-recurring earnings per share was also 0.07 yuan per share, up 16.67% year-on-year. The earnings per share indicators remained consistent with the net profit growth rate, showing a simultaneous improvement in shareholder return capability. The weighted average return on net assets was 3.32%, up 0.35 percentage points year-on-year. The non-recurring weighted average return on net assets was 3.21%, up 0.35 percentage points year-on-year. Net asset profitability strengthened steadily.

Expenses: Selling Expenses Surge, R&D Expenses Clearly Decline

R&D Personnel: R&D Team Size Stable, Bachelor’s-Degree Talent as the Core

The company’s number of R&D personnel is 25, accounting for 12.02% of the company’s total headcount. The R&D team size remains stable. In terms of educational background, all R&D personnel have at least a bachelor’s degree. Of them, 25 hold bachelor’s degrees, indicating that the overall educational level of the R&D team is high. In terms of age structure, there are 20 R&D personnel aged 30–40, accounting for 80% of total R&D personnel; they are the core force of the R&D team. There are 2 R&D personnel under 30, and 3 R&D personnel aged 40–50. The age structure is relatively reasonable.

Cash Flow: Operating Cash Flow Sees a Large Outflow, Financing Cash Flow Provides Strong Support

In 2025, the company’s operating activities cash flow changed from a large net inflow to a net outflow, mainly due to the significant expansion of the financial leasing business and an increase in project deployment funding. Financing activities cash flow changed from a net outflow to a large net inflow, mainly supported by raising funds through issuing corporate bonds, effectively meeting the capital needs for business expansion. The net cash flow from investing activities declined slightly, with limited overall impact.

Potential Risks Faced

Common Risks of Traditional Financial Businesses

2. Market risk: This includes exchange rate risk and interest rate risk. Exchange rate risk mainly comes from foreign currency borrowing businesses. Interest rate risk mainly comes from bank borrowing. Floating-rate liabilities face cash flow interest rate risk, while fixed-rate liabilities face fair value interest rate risk. Fluctuations in interest rates and exchange rates may affect the company’s financial costs and profitability.
3. Credit risk: This mainly comes from monetary funds, accounts receivable, other receivables, notes receivable, loans issued, and so on. Customer default may lead to asset losses for the company. The company controls credit risk through pre-event due diligence, dynamic management during the process, and post-event collections and recovery, but there are still cases where some customers default with overdue payments.
4. Liquidity risk: The company needs to raise funds to meet the needs for business deployment and debt repayment. If funds cannot be raised in a timely manner or market liquidity tightens, the company may face the risk of insufficient funds.

Risks of Software and Information Technology Services Business

2. Market competition risk: The internet financial cloud services market is highly competitive. If the company cannot provide high-quality products and services in a timely manner or maintain advantages in its business model, it may lead to a decline in market share.
3. Technology and product R&D risk: The industry’s technology advances quickly and product life cycles are short. If the company’s technological innovation cannot meet market demand, it may lose its competitive advantage.
4. Human resources risk: The industry has a high dependence on technical talent. If core technical personnel leave, it may affect the company’s ability to continuously innovate.

Risks of Supply Chain Services Business

2. Industry competition risk: The supply chain services industry is mature and highly competitive, and new business models continue to emerge. The company faces pressure to transform and upgrade.
3. Risk of contract default: Affected by macroeconomic uncertainties, there is a possibility that customers or suppliers may fail to fulfill their obligations in a timely manner, which may result in losses to the company.

Executive Compensation: Core Executive Compensation Is Stable, Incentive Mechanism Is Market-Oriented

2. Chairman Meng Qingli: During the reporting period, the total pre-tax remuneration received from the company was 700,900 yuan. His compensation level is consistent with the company’s operating scale and the industry level, reflecting his value contribution as the company’s core responsible person.
3. General Manager Meng Qingli: During the reporting period, the total pre-tax remuneration received from the company was 700,900 yuan, consistent with the chairman’s compensation, and in line with the company’s compensation system.
4. Vice President Yang Bin: During the reporting period, the total pre-tax remuneration received from the company was 734,500 yuan, slightly higher than the chairman and general manager. This is mainly because he concurrently serves as Chairman and General Manager of Derun Leasing, taking on more business management responsibilities.
5. CFO Dong Fei: During the reporting period, the total pre-tax remuneration received from the company was 504,200 yuan, consistent with his compensation positioning as the company’s person in charge of finance.

The compensation of the company’s senior executives is determined by the board of directors based on the positions they hold and their performance in their respective roles. Independent directors believe that the compensation payment procedures comply with laws and regulations and the requirements of the company’s articles of association, and there is no situation that harms the company or the interests of investors. The company’s compensation system is highly market-oriented and can effectively motivate the senior management team to perform their duties diligently.

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Responsible editor: Xiao Lang Kuai Bao