Haoshang Hao 2025 Annual Report Interpretation: Non-GAAP Net Profit Increased 198.89% While Operating Cash Flow Declined 4.24% YoY

Operating Revenue: Up 15.72% Year-over-Year, Domestic Business Remains the Growth Core

In 2025, the company achieved operating revenue of 8.37 billion yuan, a 15.72% increase from 7.233 billion yuan in 2024. From a business structure perspective, distribution remains the core support, generating 8.311 billion yuan, accounting for 99.29% of total revenue, up 15.66% YoY; IoT product design and manufacturing revenue was 57 million yuan, up 21.60%; chip customization revenue was 0.6489 million yuan, down 9.37%.

Regionally, domestic revenue reached 3.542 billion yuan, a significant increase of 50% YoY, accounting for 42.31% of total revenue and becoming the main driver of growth; overseas revenue was 4.829 billion yuan, a slight decrease of 0.90%, accounting for 57.69%, still the main source of revenue but with weak growth.

Profitability Indicators: Net Profit Doubled, Non-Recurring Profit Growth Surpassed Expectations

Net Profit: Up 152.79% YoY

In 2025, net profit attributable to shareholders of the listed company was 76.1997 million yuan, a substantial increase of 152.79% from 30.1433 million yuan in 2024, achieving a doubling, with significant improvement in profitability.

Non-Recurring Net Profit: Growth of 198.89%

Net profit attributable to shareholders after deducting non-recurring gains and losses was 73.7029 million yuan, up 198.89% from 24.6591 million yuan in 2024, far exceeding net profit growth, indicating a substantial enhancement in core business profitability and limited impact from non-recurring items.

Earnings Per Share: Basic and Non-Recurring EPS Grow in Tandem

• Basic earnings per share: 0.26 yuan/share in 2025, up from 0.10 yuan/share in 2024, a 160% increase, roughly matching net profit growth.
• Non-recurring earnings per share: 0.25 yuan/share in 2025, up from 0.08 yuan/share in 2024, a 212.50% increase, slightly higher than non-recurring net profit growth, reflecting positive effects from share capital changes.

Cost Control: Sales Expenses Surge, Financial Expenses Significantly Reduced

In 2025, total operating expenses were 268.4061 million yuan, up 6.22% YoY, lower than revenue growth, indicating overall effective cost management. However, the sharp increase in sales expenses warrants attention for its long-term impact on profitability.

R&D Investment: Workforce Expansion and Structural Optimization

R&D Personnel

In 2025, R&D staff numbered 115, up 9.52% from 105 in 2024. R&D personnel as a percentage of total employees decreased from 22.20% to 20.99%, mainly due to faster overall employee growth.

• Education level: Associate degree R&D staff increased from 23 to 31 (+34.78%); bachelor’s degree or above remained over 70%, with 82 staff, maintaining a stable educational structure.
• Age distribution: R&D staff aged over 40 increased from 18 to 31 (+72.22%), enriching team experience; those under 30 decreased from 48.57% to 41.74%, indicating a slight aging trend.

R&D Output

In 2025, R&D expenditure was 34.2288 million yuan, up 2.58%. The company filed 2 invention patents, 6 utility model patents, and 12 software copyrights, with steady output. Key projects include AI physiotherapy robots, XingShan technology applications, and industrial protocol conversion cards, supporting business expansion.

Cash Flow: Significant Increase in Financing Cash Flow, Operating Cash Flow Continues Net Outflow

In 2025, net increase in cash and cash equivalents was 242.6038 million yuan, mainly due to increased short-term borrowings and reduced idle funds used for bank wealth management. However, operating cash flow has been negative for two consecutive years, with further expansion, which warrants attention to long-term liquidity pressure.

Core Management Compensation: Chairman and CFO Leading

Chairman and General Manager Wang Yucheng’s pre-tax annual compensation is 1.32 million yuan, the highest among core management; Vice President and CFO Meng Zhenjiang’s pre-tax compensation is 790,000 yuan, comparable to other departing senior executives.

Risk Warnings: Multiple Risks to Watch

Agency Authorization Risk

If the company fails to secure new product line authorizations or existing ones are revoked, it could significantly impact operations. The company is strengthening cooperation with existing manufacturers and introducing new ones but must remain vigilant about industry competition affecting authorization.

Downstream Demand Risk

The company’s downstream markets include consumer electronics and automotive electronics. A decline in demand could lead to inventory buildup and increased capital pressure. The company is exploring new markets and optimizing business structure to diversify risks, but demand volatility remains uncertain.

Inventory Impairment Risk

With large inventory levels—77.81 billion yuan at year-end—market supply and demand changes could impair inventory value, requiring large write-downs. The company mainly stocks based on orders but must monitor market changes affecting inventory valuation.

Exchange Rate Fluctuation Risk

Over 50% of the company’s overseas business exposes it to currency risks from USD, HKD, etc. Fluctuations could impact foreign exchange gains and losses. The company adjusts import-export ratios to mitigate, but sudden exchange rate movements may still cause losses.

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