Tuobang Co., Ltd. 2025 Annual Report Analysis: Net profit drops by 45.81%, operating cash flow plummets by 37.88%

Revenue: Steady Growth at the “Hundreds of Billions” Scale

In 2025, the company reported operating revenue of RMB 11.08B, up 5.53% year over year from RMB 10.5B in 2024. Building on its achievement of crossing the RMB 10-billion mark in 2024, the company expanded steadily. By business segment, the tools and home appliances segment—serving as the mainstay—generated revenue of RMB 8.47B, up 6.14% year over year. The automotive and high-end equipment segment became the growth engine, achieving revenue of RMB 1.29B, up 50.84% year over year. The new energy segment recorded revenue of RMB 1.1B, up 10.42% year over year.

Judging from quarterly data, revenue is distributed relatively evenly. The four quarters generated RMB 2.67B, RMB 2.83B, RMB 2.69B, and RMB 2.9B respectively, with the company maintaining a stable business cadence throughout the year.

Profit: Major Decline in Performance—Impairment Is the Main Drag

In 2025, net profit attributable to shareholders of listed companies was RMB 364 million, a sharp decline of 45.81% year over year from RMB 671 million in 2024. Net profit after deducting non-recurring items was RMB 373 million, down 41.93% year over year. Basic earnings per share fell from RMB 0.55 to RMB 0.30. Net profit after deducting non-recurring items per share also declined in parallel, and all profit indicators shrank significantly.

The performance decline was mainly due to asset impairment and disposal losses in the fourth quarter. During the reporting period, the company disposed of and impaired related assets such as battery cell production equipment, and it also recorded goodwill impairment; these items together impacted net profit by approximately RMB 95 million, directly leading to net profit attributable to shareholders of listed companies of RMB -57 million in the fourth quarter. After excluding the impact of share-based payments, net profit was RMB 421 million, which still decreased 38.06% year over year, indicating evident pressure on core business profitability.

Expenses: Multiple Expense Lines Increased, Eroding Profitability Space

In 2025, the company’s total period expenses were RMB 1.511 billion, up 9.49% from RMB 1.380 billion in 2024. The increase in expenses was significantly higher than the increase in revenue, further squeezing profitability space.

Selling Expenses: Slight Increase Along with Business Expansion

Selling expenses were RMB 383 million, up 3.60% year over year. This was mainly due to the increase in the company’s business scale, along with corresponding higher spending on market development and customer maintenance, which matched the revenue growth cadence to a large extent.

Administrative Expenses: Increase Is Significant, Management Pressure Evident

Administrative expenses were RMB 417 million, up 16.32% year over year, with the growth far exceeding the revenue increase. This shows that the company faces pressure in cost control in management and operations, or that it may be related to factors such as adjustments to organizational structure and growth in staff compensation.

Financial Expenses: Turned from Positive to Negative—FX Gains Contributed

Financial expenses were RMB -12 million, sharply down from RMB 23 million in 2024. This was mainly due to foreign exchange gains arising from currency rate fluctuations during the reporting period, which to a certain extent offset the growth in other expenses.

R&D Expenses: Continued High Investment, Strengthening Technical Barriers

R&D expenses were RMB 723 million, up 8.96% year over year, accounting for 6.52% of operating revenue. The company continued to invest in the “Four-Electric-One-Network + AI” technology system. In 2025, the number of R&D personnel reached 2,462, representing 18.65% of total employees, up from 2,312 in 2024 (an increase of 6.49%). This provided support for technology iteration and expansion into new business.

R&D Personnel: Steady Expansion in Scale, Increased Proportion

In 2025, the company’s number of R&D personnel reached 2,462, an increase of 150 from 2,312 in 2024, up 6.49% year over year. The proportion of R&D personnel rose from 17.76% in 2024 to 18.65%. The company continued to strengthen R&D team building, focusing on the application of AI technology in three directions: product intelligence, manufacturing intelligence, and R&D intelligence. This provided talent support for iteration of the “Four-Electric-One-Network + AI” technology system and the launch of independent intelligent products.

Cash Flow: Operating Cash Flow Plunged—Both Investing and Financing Cash Flows Declined

In 2025, the company’s net increase in cash and cash equivalents was RMB -150 million. Compared with RMB 1.102 billion in 2024, it turned from positive to negative, putting pressure on cash flow conditions.

Operating Cash Flow: Sharply Down by Nearly 38%—Receivables Collection Weakened

Net cash flow from operating activities was RMB 678 million, down sharply by 37.88% from RMB 1.092 billion in 2024. This was mainly affected by factors such as fluctuations in downstream demand and changes in the timing of accounts receivable collections, leading to a significant decline in the company’s ability to generate cash from operating activities.

Investing Cash Flow: Continued Net Outflows—Scale Narrowed

Net cash flow from investing activities was RMB -520 million, with outflows reduced by RMB 211 million year over year from RMB -731 million in 2024. This was mainly because the scale of fixed-asset investment contracted in 2025, while the disposal of certain assets brought some cash inflow.

Financing Cash Flow: Net Outflows Widened—Stronger Debt Repayment

Net cash flow from financing activities was RMB -308 million, with the scale of net outflows expanding year over year from RMB -41 million in 2024. This was mainly because the company increased efforts in dividend distribution and debt repayment. In 2025, the company plans to distribute cash dividends of RMB 0.7 for every 10 shares, for a total cash payout of approximately RMB 860 million.

Risk Warning: Multiple External Challenges Overlap

Risk of Intensifying Industry Competition

The industry’s intelligent control sector is seeing faster technology iteration. The penetration of AI technology is reshaping the competitive landscape. The technical barriers of leading companies continue to rise, smaller and mid-sized enterprises are accelerating in clearing, and the company needs to continuously maintain technological leadership to consolidate its market position.

Supply Chain and Cost Risks

Adjustments in trade patterns have led to the regional restructuring of supply chains. Factors such as fluctuations in prices of key raw materials and currency exchange rate fluctuations continue to affect costs. In 2025, the gross margin of the tools and home appliances segment declined by 1.69 percentage points year over year, while the gross margin of the automotive and high-end equipment segment fell by 1.20 percentage points. This indicates that pressure on cost control has become evident.

Risk of Technology Iteration

If AI technology evolves rapidly, and if the company’s iteration pace for the “Four-Electric-One-Network + AI” technology system lags behind the industry, or if the rollout of its self-developed intelligent products does not meet expectations, it will affect long-term competitiveness.

Risk in Overseas Markets

Overseas revenue accounts for more than 50%. The overseas capacity layout faces multiple risks including geopolitical issues, tariff policies, and local regulations. Escalation of trade frictions may adversely affect business development.

Remuneration for Executives and Board Members: Compensation for Core Executives Remains Stable

During the reporting period, the total pre-tax remuneration received by Wu Yongqiang, Chairman and General Manager, from the company was RMB 1.5855 million. Pre-tax remuneration for Zhang Xianzhi, Vice General Manager, was RMB 1.0230 million. Pre-tax remuneration for Luo Muchen, Chief Financial Officer, was RMB 0.8085 million. Compensation for core executives remained stable, contrasting with the company’s declining performance. Going forward, attention should be paid to whether the compensation-to-performance linkage mechanism is reasonable.

Click to view the full text of the announcement >>

Disclaimer: There are risks in the market; investment is需 be cautious. This article is automatically published by an AI large model based on third-party databases and does not represent Sina Finance’s viewpoints. Any information appearing in this article is only for reference and does not constitute personal investment advice. If there are discrepancies, please refer to the actual announcement. If you have any questions, please contact biz@staff.sina.com.cn.