Tonghé Technology 2025 Annual Report Interpretation: Revenue Increased 28.78% to 1.557 Billion Yuan, Non-GAAP Net Profit Surged 79.80%

Key Profitability Indicators Analysis

Operating Revenue

In 2025, the company achieved an operating revenue of 1,557.1551 million yuan, a year-on-year increase of 28.78%, marking a new milestone in revenue scale. By industry, the new energy sector contributed 1,090.6999 million yuan, accounting for 70.04%, up 28.05% year-on-year, remaining the core engine of revenue growth; the power industry generated 257.3824 million yuan, up 17.27%; aerospace and other industries reached 189.9011 million yuan, a significant increase of 82.57%, becoming a new growth highlight. Regionally, the Northern and South China regions saw revenue growth of 42.92% and 45.83% respectively, indicating effective regional market expansion.

Net Profit and Non-Recurring Profit

In 2025, net profit attributable to shareholders of the listed company was 40.1533 million yuan, up 67.72% year-on-year; non-recurring net profit was 34.2409 million yuan, a substantial increase of 79.80%, indicating improved profitability quality. The total non-recurring gains and losses amounted to 5.9123 million yuan, mainly from government subsidies, bank structured deposits, etc., with limited impact on net profit. The core driver of performance improvement remains the growth in main business profits.

Earnings Per Share (EPS)

In 2025, basic EPS was 0.23 yuan per share, up 64.29%; non-recurring EPS was 0.20 yuan per share, up 71.43%. The growth rate of EPS aligns with net profit growth, reflecting a corresponding increase in shareholder returns per share.

Cost Structure Analysis

Overall Expense Situation

In 2025, the company’s total operating expenses were 331.3354 million yuan, an increase of 18.84%, with expense growth lower than revenue growth, demonstrating effective cost control. The specific expense details are as follows:

R&D Expenses and Personnel

In 2025, R&D expenses reached 138.3767 million yuan, accounting for 8.89% of operating revenue. The company continued to advance technological research in new energy, smart grids, and other fields, completing projects such as bidirectional high-frequency storage and charging modules, heat pump integrated controllers, and launching new products like the Taihang series 80kW charging modules and CE Class B and cTUVus compliant 40kW charging modules, consolidating industry technological leadership.

At the end of the reporting period, the company had 574 R&D personnel, accounting for 31.23% of total employees, an increase of 8.10% from 2024. R&D staff over 40 years old increased by 47.22%, with a higher proportion of senior R&D personnel, providing stable technical support; over 86% of R&D staff hold bachelor’s degrees or higher, indicating a high overall educational level of the R&D team.

Cash Flow Analysis

Overall Cash Flow

In 2025, the company’s net increase in cash and cash equivalents was 38.3147 million yuan, a decrease of 4.99% compared to the previous year. While cash flow remained stable, growth slowed. The three major cash flow components are as follows:

Risk Warnings

Industry Policy Risks

The company’s business focuses on policy-driven sectors such as new energy, smart grids, and aerospace. Significant policy adjustments—such as reductions in new energy subsidies or changes in grid investment plans—could adversely affect market demand and profitability. The company needs to closely monitor policy developments and adjust its business layout accordingly to mitigate policy risk.

Accounts Receivable Growth Risk

As of the end of the reporting period, accounts receivable totaled 951.77 million yuan, a 30.40% increase from the beginning of the period. With revenue expanding, receivables continue to grow. If downstream customers’ operations deteriorate, there is a risk of bad debts. The company should strengthen credit management, improve collection mechanisms, and optimize cash flow management.

R&D Risks

In the fast-evolving power electronics industry, despite increased R&D investment, the commercialization of new technologies and market promotion of new products face uncertainties. If R&D efforts do not align with market needs, expected benefits may not materialize. The company should enhance market research, accurately grasp technological trends, and improve project success rates.

Gross Margin Decline Risks

Intense competition in the new energy sector and downward pressure on product prices could lead to declining gross margins. In aerospace, if entry barriers lower and more competitors enter, margins may compress. The company needs to maintain technological innovation and cost control to sustain stable gross margins.

Inventory Growth Risks

At the end of the reporting period, inventory was valued at 32.8247 million yuan, a 24.20% increase from the beginning of the period. Growing inventory levels tie up working capital. If market demand shifts and inventory becomes unsellable, there is a risk of inventory write-downs. The company should optimize inventory management, implement “produce-to-demand” and “safe stock” policies to reduce inventory holdings.

Goodwill Impairment Risks

The company acquired Huwei Power in 2019, resulting in goodwill of 151.6952 million yuan. If Huwei Power’s future operations do not meet expectations, there is a risk of goodwill impairment, directly impacting current profits. The company should strengthen integration and management of Huwei Power to improve its profitability and reduce impairment risk.

Management and Directors’ Compensation

During the reporting period, the chairman Ma Xiaofeng received a pre-tax remuneration of 1.4443 million yuan; the general manager (also Ma Xiaofeng) received the same amount; vice presidents Feng Zhiyong and Xu Weidong received 1.148 million yuan and 1.0013 million yuan respectively; CFO Liu Qing received 780,000 yuan. Compensation for directors and senior management is linked to company performance, incentivizing management to improve operational results.

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