Great Wisdom 2025 Annual Report Analysis: Revenue up 7.23% but still a loss of 44.02 million yuan; non-recurring loss widened to 77.80 million yuan

Revenue: Revenue Growth Achieved, Contribution from Advertising and Mobile Business

In 2025, DaZhiHui achieved a revenue of 826,557,300 yuan, an increase of 7.23% compared to 770,853,400 yuan in the same period last year. From the business structure, the growth mainly came from advertising and internet business promotion services, financial information and data mobile terminal service systems:

• Revenue from advertising and internet business promotion services was 121,682,600 yuan, a year-on-year increase of 14.99%, becoming one of the core drivers of revenue growth;
• Revenue from financial information and data mobile terminal service systems was 35,415,100 yuan, a significant year-on-year increase of 38.57%, with substantial progress in mobile business expansion;
• Revenue from traditional financial information and data PC terminal service systems was 421,766,200 yuan, a year-on-year increase of 7.80%, still forming the basic support of the company’s revenue.

However, some businesses experienced declines, such as revenue from the internet live streaming social platform system, which was 3,108,600 yuan, a year-on-year decrease of 29.49%, and revenue from the Hong Kong stock service system was 115,220,100 yuan, a year-on-year decrease of 3.58%.

Net Profit: Loss Narrowed but Still Not Turned Around, Non-Recurring Gains Mainly Contributed to Reduced Loss

In 2025, the company’s net profit attributable to shareholders of the listed company was -44,025,700 yuan, compared to -201,271,000 yuan in the same period last year, with a significant narrowing of the loss. However, the net profit after deducting non-recurring gains and losses was -77,796,500 yuan, a reduction in the loss scale compared to -200,015,300 yuan in the same period last year, but still at a high level.

Non-recurring gains and losses became a key factor in reducing losses, with total non-recurring gains and losses in 2025 amounting to 33,770,800 yuan, mainly from:

• Investment income of 31,644,100 yuan confirmed from the disposal of subsidiary Shanghai Tianlanlan Investment Management Co., Ltd.;
• Changes in fair value of financial assets and disposal income of 33,006,100 yuan;
• Government subsidies of 1,783,100 yuan.

Excluding these non-recurring gains and losses, the company’s core business profitability has not shown significant improvement, with the adjusted loss scale still close to 80 million yuan.

Earnings Per Share: Loss Narrowed, Adjusted Earnings Per Share Still Negative

In 2025, the basic earnings per share was -0.022 yuan/share, compared to -0.100 yuan/share in the same period last year; the basic earnings per share after deducting non-recurring gains and losses was -0.039 yuan/share, compared to -0.100 yuan/share in the same period last year. The changes in earnings per share are consistent with the trend of net profit changes, reflecting a narrowing of the loss, but the adjusted earnings per share remains negative, indicating that the company’s core business profitability pressure is still significant.

Expenses: Total Expenses Decreased Year-on-Year, Cost Reduction and Efficiency Improvement Evident but R&D Investment Decreased

In 2025, the company’s total expenses (selling expenses + management expenses + R&D expenses + financial expenses) amounted to 593,373,290.50 yuan, a year-on-year decrease of 8.55% from 648,828,773.15 yuan in the same period last year, indicating that cost reduction and efficiency improvement measures have achieved some results.

Selling Expenses: Decreased by 5.52% Year-on-Year, Reduction in Advertising and Human Resources Investment

In 2025, selling expenses were 15,901,510 yuan, compared to 16,831,060 yuan in the same period last year, a decrease of 5.52%. The main reasons for the changes were:

• Advertising expenses of 2,454,460 yuan, a year-on-year decrease of 20.86%;
• Employee compensation of 8,791,360 yuan, a year-on-year decrease of 5.40%;
• Service fees of 3,710,990 yuan, a year-on-year increase of 6.06%, becoming the only growing item in selling expenses.

Management Expenses: Decreased Significantly by 16.26% Year-on-Year, Reduced Severance Compensation is the Main Reason

In 2025, management expenses were 26,746,570 yuan, compared to 31,939,310 yuan in the same period last year, a decrease of 16.26%. The main reason is that the severance compensation amount for 2024 was relatively high, and the corresponding expenses decreased in 2025, while employee compensation decreased from 22,072,400 yuan to 17,578,240 yuan, a year-on-year decrease of 20.36%. Other expenses, such as property energy costs and travel expenses, also decreased to varying degrees.

Financial Expenses: Negative Amount Narrowed, Decrease in Interest Income

In 2025, financial expenses were -1,822,210 yuan, compared to -5,976,990 yuan in the same period last year, narrowing the negative amount. This was mainly due to interest income decreasing from 6,382,390 yuan to 2,230,240 yuan, a year-on-year decrease of 65.06%, while interest expenses decreased from 338,410 yuan to 163,180 yuan, a year-on-year decrease of 51.78%. The drop in interest income was much greater than the drop in interest expenses, leading to a significant reduction in financial expense income.

R&D Expenses: Decreased by 16.20% Year-on-Year, Significant Reduction in Human Resources Investment

In 2025, R&D expenses were 18,511,450 yuan, compared to 22,089,490 yuan in the same period last year, a year-on-year decrease of 16.20%. The main reason is that employee compensation for R&D personnel decreased from 21,098,500 yuan to 17,791,360 yuan, a year-on-year decrease of 15.68%, and depreciation costs and intangible asset amortization also saw slight decreases. The reduction in R&D investment may have certain impacts on the company’s long-term technological competitiveness.

R&D Personnel Situation: Number of R&D Personnel Decreased, Proportion Slightly Declined

In 2025, the number of R&D personnel in the company was 672, a decrease of 49 from 721 last year, with the proportion of R&D personnel to the total number of employees being 39.9%, down from 42.1% in the same period last year, indicating a slight decline. In terms of educational structure:

• 1 PhD, 120 Master’s degree holders, 479 Bachelor’s degree holders, 67 Associate degree holders, and 5 with high school education or below, with R&D personnel with a Bachelor’s degree or above accounting for 89.29%, indicating a high overall educational level of the R&D team;
• In terms of age structure, there were 342 R&D personnel aged 30-40, accounting for 50.89%, forming the core strength of the R&D team, while 156 personnel under 30 accounted for 23.21%, indicating a relatively reasonable age structure of the team.

Cash Flow: Operating Cash Flow Turned Positive, Investment Cash Flow Turned Positive from Negative, Financing Cash Flow Outflow Narrowed

In 2025, the net increase in cash and cash equivalents for the company was -358,470 yuan, compared to -49,761,210 yuan in the same period last year, showing a significant improvement in cash flow conditions.

Operating Cash Flow: Turned Positive from Negative, Increase in Collections + Decrease in Costs Together Drive Growth

In 2025, the net cash flow generated from operating activities was 1,198,250 yuan, compared to -16,073,920 yuan in the same period last year, achieving a turnaround. The main reasons were:

• Cash received from sales of goods and services was 88,773,140 yuan, a year-on-year increase of 10.75%, with improved customer payment situations;
• Cash paid to employees and for employee payments was 55,577,710 yuan, a year-on-year decrease of 11.77%;
• Cash paid for purchasing goods and receiving services was 18,681,900 yuan, a year-on-year decrease of 21.39%, with reduced cost expenditures also contributing to positive operating cash flow.

Investment Cash Flow: Turned Positive from Negative, Redemption of Financial Products + Disposal of Subsidiaries Contributed Inflows

In 2025, the net cash flow generated from investment activities was 7,461,330 yuan, compared to -18,639,970 yuan in the same period last year, achieving a turnaround. This was mainly due to:

• Cash received from recovered investments of 156,948,130 yuan, mainly from redeeming bank financial products;
• Cash received from the disposal of subsidiary Shanghai Tianlanlan Investment Management Co., Ltd. was 3,155,380 yuan;
• Cash paid for investments was 150,993,590 yuan, a year-on-year decrease of 45.41%, indicating reduced investment expenditures.

Financing Cash Flow: Outflow Narrowed, Share Buybacks and Lease Expenditures Decreased

In 2025, the net cash flow generated from financing activities was -8,535,740 yuan, compared to -15,398,910 yuan in the same period last year, with a narrowed outflow. The main reason was that last year, 6,284,000 yuan was paid for restricted stock buybacks, with no such expenditure this period; simultaneously, cash paid for share buybacks decreased from 57,252,700 yuan to 44,426,900 yuan, while lease expenditures slightly increased from 39,084,400 yuan to 40,503,900 yuan.

Potential Risks: Industry Competition, Market Volatility and Other Risks Remain

2. Risk of Intensified Industry Competition: The financial information service industry faces severe homogenization competition, with internet giants and financial institutions increasingly entering related businesses, leading to continuous market competition pressure on the company;
3. Market Volatility Risk: The company’s business is highly correlated with the securities market; if the market remains sluggish, demand for financial information services from investors will decline, affecting the company’s performance;
4. Technological Iteration Risk: Financial technology evolves rapidly; if the company cannot keep up with technological upgrades in a timely manner, it may lead to a decline in product competitiveness;
5. Overseas Business Risk: The company’s overseas business accounts for about 25.37%, facing risks such as exchange rate fluctuations and changes in overseas regulatory policies.

Executive Compensation: Core Executives’ Compensation Stable, Disclosure of Compensation for Some Departing Executives

In 2025, the compensation situation for the company’s directors, supervisors, and senior executives was as follows:

• Chairman and General Manager Zhang Zhihong: Total pre-tax compensation from the company during the reporting period was 1,132,400 yuan;
• Vice President Fang Tao: Total pre-tax compensation was 1,228,900 yuan;
• Vice President, Board Secretary, and CFO Shen Ruibo: Total pre-tax compensation was 1,240,000 yuan;
• Vice President Shen Jian: Total pre-tax compensation was 1,384,500 yuan;
• Departing Director and CFO Chen Zhi: Total pre-tax compensation during the reporting period was 1,080,000 yuan.

Overall, the compensation level of the company’s core executives is relatively stable and generally matches the company’s performance.

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