Dongyue Silicon Material 2025 Annual Report Analysis: Net profit shifts from profit to loss, down 134.02%; R&D personnel sharply reduced by 39.41%

Operating Revenue: Down 26.80% Year-on-Year, Main Business Under Significant Pressure

In 2025, the company achieved operating revenue of 3.77 billion yuan, a year-on-year decrease of 26.80% from 5.15B yuan last year, mainly due to deep adjustments in the organosilicon industry and falling product prices. From the business structure:

• Organosilicon chemical raw material manufacturing revenue was 3.67B yuan, down 27.52% year-on-year, accounting for 97.39% of total revenue, which is the core factor for the revenue decline; among them, the core product 107 glue revenue was 1.7B yuan, a sharp decrease of 39.27% year-on-year, with its proportion dropping from 54.33% last year to 45.08%, showing a clear trend of declining volume and price.
• Other business income was 98 million yuan, up 15.88% year-on-year, accounting for 2.61%, mainly from sales of waste materials, with limited offsetting effect on the main business decline.

Net Profit: From Profit to Loss, Net Loss Narrows After Non-Recurring Items

During the reporting period, net profit attributable to shareholders of the listed company was -0.19 billion yuan, compared to a profit of 19M yuan in the same period last year, a significant decline of 134.02%, marking the first annual loss, mainly due to industry downturn and a fire accident affecting production. After deducting non-recurring gains and losses, net profit attributable to shareholders was -3 million yuan, down 103.58% year-on-year, with the loss margin smaller than net profit, mainly because non-recurring gains and losses dragged down net profit by about 17 million yuan.

Earnings Per Share: From Positive to Negative, Profitability Under Pressure

In 2025, basic earnings per share was -0.02 yuan/share, compared to 0.05 yuan/share last year, a decrease of 140.00% year-on-year; after deducting non-recurring items, basic earnings per share was -0.002 yuan/share, compared to 0.06 yuan/share last year, a sharp decline. The shift from positive to negative earnings directly reflects a significant deterioration in the company’s profitability.

Expenses: Slight Increase Overall, Structural Differentiation Evident

In 2025, the company’s total period expenses were 191 million yuan, a slight decrease of 2.00% from 195 million yuan last year, but with clear structural differences:

Selling Expenses: Basically Stable, Structural Optimization

Selling expenses were 19.2 million yuan, down 1.45% year-on-year, mainly due to the company’s optimization of sales system and streamlining personnel, as well as control of travel and entertainment expenses. The selling expense ratio increased from 0.38% last year to 0.51%, indicating passive elevation due to revenue decline.

Management Expenses: Up 10.73% YoY, Share-based Payment Adds Drag

Management expenses were 50.2 million yuan, up 10.73%, mainly due to recognition of share-based payment expenses of 4.63 million yuan, compared to only 1.05 million yuan last year. Excluding this factor, management expenses remained relatively stable.

Financial Expenses: Up 12.28% YoY, Decrease in Exchange Gains

Financial expenses were -57M yuan, up 12.28% (decrease in gains), mainly because foreign exchange gains decreased by 1.12 million yuan compared to last year, while bank fees increased.

R&D Expenses: Down 18.76% YoY, Investment Scale Shrinks

R&D expenses were 133.5 million yuan, down 18.76%, partly due to a reduction in R&D personnel leading to lower salary costs, and partly due to the company’s proactive reduction of some non-core R&D projects. R&D investment intensity increased from 3.19% last year to 3.54%, indicating that despite revenue decline, the company maintained relatively strong R&D efforts.

R&D Personnel: Sharp Drop of 39.41%, Team Significantly Reduced

As of the end of 2025, the company had 143 R&D personnel, a sharp decrease of 39.41% from 236 last year, with the proportion of total employees dropping from 19.31% to 11.83%. Structurally:

• R&D personnel aged 30-40 decreased by 50, a 40.00% reduction; those over 40 decreased by 28, a 53.85% reduction, indicating significant loss of core R&D talent.
• R&D personnel with undergraduate or higher degrees decreased from 127 to 119, a reduction of 8, or 6.30%, affecting overall team size and talent pipeline.

Cash Flow: Operating Cash Flow Stable, Net Investment and Financing Both Negative

Operating Cash Flow: Slight Decrease of 0.55%, Still Maintaining Positive Cash Flow

In 2025, net cash flow from operating activities was 12M yuan, a slight decrease of 0.55% from 216M yuan last year. Despite losses, the company maintained positive cash flow, mainly due to strengthened receivables collection and optimized procurement and payment rhythm. Operating cash outflow decreased by 24.42%, larger than the decrease in inflow (21.99%).

Investing Cash Flow: Net Decrease of 22.36%, Driven Mainly by Structural Deposits Changes

Net cash flow from investing activities was -17 million yuan, down 22.36% year-on-year. Inflows increased significantly by 6185.72% to 154 million yuan, mainly due to maturity of structured deposits; outflows increased by 924.66% to 171 million yuan, mainly due to new structured deposits, representing a structural adjustment of cash rather than actual investment gains.

Financing Cash Flow: First Net Outflow, Dividends Cause Cash Outflow

Net cash flow from financing activities was -18M yuan, compared to zero last year, mainly due to the company’s dividend payout of 18 million yuan and recovery of dividend guarantee deposits of 1 million yuan. Overall, it shows a net outflow, indicating the company maintained dividend policy despite losses.

Potential Risks: Industry and Operational Risks Intertwined

2. Macroeconomic and Industry Cycle Risks: The demand for organosilicon is highly correlated with macroeconomic conditions. If downstream real estate, construction, and other traditional sectors remain sluggish, or if emerging sectors underperform expectations, company performance will face further pressure.
3. Market Competition Intensification Risks: Global organosilicon capacity is concentrated in China, with overcapacity issues persisting domestically. Continued low-price competition may squeeze profit margins; additionally, intensified export market competition and slowing overseas demand could impact the company’s export business.
4. Raw Material Price Fluctuation Risks: Prices of silicon metal, methanol, and other raw materials are heavily influenced by supply-demand and geopolitical factors. Significant price increases will directly raise production costs and affect profitability.
5. Safety and Environmental Risks: The fire accident at the synthesis workshop in July 2025 has already impacted production. Future safety or environmental incidents could lead to shutdowns, fines, and increased environmental compliance costs, further compressing profits.

Senior Management Compensation: Chairman Receives 1.1914 Million Yuan, Core Executives Remain Stable

During the reporting period, the total compensation of directors, supervisors, and senior management was 3.5423 million yuan, a slight increase from last year, mainly due to shorter tenures of some executives following board changes. Specific key executives’ compensation:

• Chairman Wang Weidong received a pre-tax total of 1.1914 million yuan, the highest among the company’s executives, also receiving remuneration from related party Dongyue Fluorosilicone Technology Group.
• General Manager Su Lin received no pre-tax remuneration from the company, with all compensation from related parties.
• Vice President Yi Gang received 1.1061 million yuan pre-tax, close to Chairman Wang’s level.
• CFO Wang Haibo received 552.2k yuan pre-tax, at middle management level.

| Position | | — | — | — | | Pre-tax Total Compensation (ten thousand yuan) | From Related Parties? | | — | — | — | | Chairman (Wang Weidong) | 119.14 | No | | General Manager (Su Lin) | 0.00 | Yes | | Vice President (Yi Gang) | 110.61 | No | | CFO (Wang Haibo) | 55.22 | No |

Click to view the original announcement>>

Disclaimer: Market risks exist; investment should be cautious. This article is automatically published by an AI model based on third-party databases and does not represent Sina Finance’s views. All information herein is for reference only and does not constitute personal investment advice. Please refer to official announcements for accuracy. For questions, contact biz@staff.sina.com.cn.