Jingliang Holdings 2025 Annual Report Analysis: Non-GAAP Net Profit Plummeted by 2615.79%, Operating Cash Flow Turned from Loss to Profit

In-Depth Breakdown of Core Revenue and Profitability Metrics

Operating Revenue: A Major Drop Driven by Active Contraction

In 2025, Jingliang Holding achieved operating revenue of 7.859 billion yuan, down 31.28% year over year from 11.435 billion yuan in 2024. Judging by quarterly data, revenue declined quarter by quarter, with Q1 to Q4 respectively at 2.135 billion yuan, 2.073 billion yuan, 2.003 billion yuan, and 1.647 billion yuan, showing a clear downward trend.

The company said that the decline in revenue was mainly due to adjusting the positioning of its trading business and actively reducing the scale of its oil-and-fat trading business. As a company centered on oil-and-oilseed processing and food processing, the contraction of its trading business directly affects revenue volume, but it also, to a certain extent, reduces volatility risk in trading-related operations.

Net Profit: Turn from Profit to Loss, with a Sharp Performance Reversal

Net profit attributable to shareholders of the listed company was -266 million yuan, down sharply by 1118.30% year over year from 26 million yuan in 2024, representing a turnaround from profit to loss. Net profit after excluding non-recurring gains and losses was -279 million yuan, down 2615.79% year over year, indicating a significant deterioration in core profitability.

Based on quarterly data, Q1 and Q2 still generated profits, but the loss scale in Q3 and Q4 continued to expand. Loss in Q4 alone reached 215 million yuan, becoming the main source of the company’s full-year loss.

Earnings Per Share: Turn from Positive to Negative, Pressuring Shareholder Returns

Basic earnings per share were -0.37 yuan per share, down 1025% year over year from 0.04 yuan per share in 2024. Diluted earnings per share excluding non-recurring items was also -0.37 yuan per share, while it was 0.02 yuan per share in 2024. The sharp decline in earnings per share directly reflects a deterioration in the company’s ability to deliver returns to shareholders.

Analysis of the Structure of Period Expenses and R&D Spending

Total Period Expenses: Still Slightly Up Despite Scale Contraction

In 2025, the company’s total period expenses were 446 million yuan, up 8.93% year over year from 409 million yuan in 2024. Against the backdrop of a sharp drop in revenue, period expenses did not contract in tandem, which to a certain extent intensified pressure on profitability.

Breakdown of Expenses: Sales, administrative, and finance costs all increased, while R&D expenses declined

• Selling expenses: Up 9.86% to 154 million yuan. The increase was mainly driven by higher spending on market promotion and channel maintenance. However, against the background of declining revenue, the selling expense ratio rose from 1.23% in 2024 to 1.96% in 2025, indicating a decline in investment efficiency.
• Administrative expenses: Up 7.15% to 213 million yuan. Although the company’s scale contracted, administrative expenses still increased rigidly, possibly related to organizational structure adjustments and increased spending on compliance.
• Finance costs: Sharply increased by 28.72% to 58.41 million yuan, mainly due to higher interest expense. In 2025, interest expense reached 65.0817 million yuan, up 7.59% from 60.4924 million yuan in 2024. Meanwhile, interest income fell from 17.6285 million yuan to 14.0284 million yuan, further pushing up finance costs.
• R&D expenses: Down 22.85% to 19.2744 million yuan. Under profitability pressure, the company reduced R&D investment, which may affect long-term product innovation capability.

Cash Flow: Turnaround to Profit on the Operating Side, with Expanded Outflows for Investing and Financing

Overall Cash Flow: Net Amount Turns from Negative to Positive

In 2025, the company’s net increase in cash and cash equivalents was 393 million yuan, while in 2024 it was -145 million yuan, showing an overall improvement in cash flow conditions.

Cash Flow by Segment: Strong Operating Cash Flow, with Continued Net Outflows in Investing and Financing

• Net cash flow from operating activities: Turned from negative to positive, with net inflow of 647 million yuan, up sharply by 690.82% year over year. The main drivers were a significant decline in inventory scale (from 2.358 billion yuan to 1.422 billion yuan) and improved optimization of receivables and payables, showing a substantial improvement in the company’s ability to recover funds from operations.
• Net cash flow from investing activities: Net outflow was -61.16 million yuan; in 2024 it was net inflow of 33.747 million yuan. It shifted to net outflow mainly due to increased spending on purchases of long-term assets such as fixed assets and intangible assets (from 47.5077 million yuan increasing to 100.3185 million yuan), along with new external investments of 28.4556 million yuan.
• Net cash flow from financing activities: Net outflow expanded to 179 million yuan, mainly due to higher debt repayment expenditures (from 3.809 billion yuan increasing to 4.242 billion yuan). At the same time, interest payments and other financing expense spending rose.

Analysis of Assets, Liabilities, and Equity Structure

Asset Scale: Clear Contraction and Optimized Structure

At the end of 2025, the company’s total assets were 6.118 billion yuan, down 8.70% year over year from 6.701 billion yuan at the end of 2024. Of this, current assets decreased from 4.763 billion yuan to 4.189 billion yuan, and non-current assets decreased from 1.938 billion yuan to 1.929 billion yuan. The contraction in asset scale was mainly due to reductions in inventories and other receivables.

Liability Structure: Reduced Short-Term Liabilities, with Overall Leverage Stable

At the end of 2025, total liabilities were 2.907 billion yuan, down 8.86% from 3.190 billion yuan at the end of 2024. The asset-liability ratio was 47.51%, basically flat compared with 47.61% in 2024. Short-term borrowings decreased from 1.312 billion yuan to 1.136 billion yuan. The due portion of non-current liabilities decreased from 544 million yuan to 376 million yuan, easing short-term repayment pressure to some extent.

Equity Structure: State-Owned Capital Control Remains Firm

As of the end of 2025, the company’s largest shareholder was Beijing Food Group Co., Ltd., holding 39.68%; the second-largest shareholder was Beijing State-Owned Assets Management Co., Ltd., holding 6.67%. Both are persons acting in concert, and together they held 46.35%. The state-owned capital controlling position remained solid.

Risk Disclosure

2. Risk of Intensified Industry Competition: The concentration in the oil-and-fat processing industry is increasing, and consolidation by leading companies is accelerating; homogenous competition is severe in the food processing industry, and the company needs to continuously strengthen its brand and product differentiation.
3. Risk of Fluctuations in Raw Material Prices: The company’s reliance on imported oil and oilseeds means that international price fluctuations and exchange rate changes will directly affect costs. The company’s supply chain management and cost-control capabilities face tests.
4. Risk of Ongoing Losses: In 2025, core business turned from profit to loss. If cost pressure in oil-and-fat processing cannot be alleviated and the food business channel transformation does not meet expectations, performance may continue to face pressure.
5. Risk of Capital Chain: Although operating cash flow improved, financing activities continued to generate net outflows. The scale of liabilities remains at a relatively high level, and interest expense pressure is significant.

Overall, in 2025 Jingliang Holding’s active contraction of its trading business led to a sharp decline in revenue. Meanwhile, driven by factors including raw material cost and industry competition, the company fell into losses. However, the improvement in operating cash flow provides the company with a certain buffer space. In the future, the company needs to focus on its core business, optimize cost control, and accelerate the transformation of food business channels in order to reverse its deteriorating performance.

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