Daodao Quan's 2025 Revenue and Net Profit Show Steady Dual Growth, Laying a Solid Foundation for High-Quality Development

Reprinted from: Securities Daily

This newspaper report (Reporter Xiao Wei) on the evening of March 18th announced that Daodaoquan Grain & Oil Co., Ltd. (hereinafter referred to as “Daodaoquan”) released its 2025 annual report. Despite fluctuations in raw material prices and intensified market competition in the edible oil industry, the company achieved growth in both revenue and net profit for the year. Cost reduction and efficiency improvements showed notable results, core business foundations remained solid, and the momentum for high-quality development continued to strengthen, delivering a steady and positive annual performance for investors.

In 2025, the company maintained steady progress in scale, achieving operating revenue of 6.195 billion yuan, a year-on-year increase of 4.24%. Its profitability was impressive, with net profit attributable to shareholders reaching 234 million yuan, up 32.02% year-on-year. The quality of earnings also substantially improved, with net profit after deducting non-recurring gains and losses at 187 million yuan, up 53.25%. Meanwhile, shareholder returns improved accordingly, with basic earnings per share of 0.679 yuan, up 32.02%, and the weighted average return on net assets at 10.68%, an increase of 2.12% from the previous year. The company also proposed a profit distribution plan for 2025, intending to pay 1.20 yuan (including tax) per 10 shares to all shareholders. Coupled with the interim dividend already paid this year, the total dividends for 2025 will exceed 101.8 million yuan (including tax), accounting for 43.59% of the net profit attributable to the parent company for the year. This approach ensures the company’s operational development while sharing the results with all shareholders.

In 2025, Daodaoquan focused on digital management, comprehensively deepening supply chain collaboration and refined full-chain operations, continuously releasing cost-saving and efficiency-enhancing results. By optimizing production scheduling, strictly controlling inventory levels, and improving capital turnover efficiency, the company effectively reduced operating costs and increased asset utilization, steadily improving operational quality. In terms of expense control, sales expenses decreased by 21.35% year-on-year, and financial expenses dropped significantly by 91.35%, mainly due to improved channel efficiency, optimized fund management, and reduced exchange losses. The ongoing improvement in expense structure further increased profit margins. Additionally, the company effectively hedged raw material price fluctuations through optimized hedging strategies, with gains and losses from hedging instruments and related projects totaling approximately 304 million yuan for the year, enhancing risk resistance and operational efficiency.

As a leading enterprise in China’s rapeseed oil segment, Daodaoquan continued to improve channel construction, deepening national market penetration through differentiated layout strategies, with core business competitiveness continuously strengthening. In 2025, the company targeted precise channel development and layered promotion: first, strengthening provincial capital benchmarks in mature markets and expanding to lower-tier cities; second, focusing on potential regions in weaker or blank markets, increasing market development and channel deployment efforts, with the number of distributors rising to 1,455, an 11.49% increase. Regional distributor teams expanded steadily, and market penetration deepened nationwide. Regarding core business, packaged oil, serving as the company’s “ballast stone,” was further consolidated, generating revenue of 3.788 billion yuan, up 6.21%, accounting for 61.16% of total revenue. Online and offline channels worked together, with online direct sales revenue increasing by 9.69% and distributor model revenue rising by 7.87%, solidifying market coverage through dual channels. The company also continued to enrich its product matrix, steadily expanding high-end and specialty oils such as high-oleic rapeseed oil, tea oil, and prickly ash oil, aligning with consumer upgrade trends and injecting new momentum into performance growth.

In 2025, Daodaoquan focused on optimizing core product technologies, conducting technical research and process upgrades on key products like flavored tea oil and high-oleic rapeseed oil. The flavor tea oil enhancement project completed small-scale and pilot testing, with parameters verified, and will soon launch tea seed oil products with unique flavor and stable quality. The breeding and industrial application of two new high-oleic rapeseed varieties were completed, providing high-quality germplasm resources for industrialization, further strengthening product competitive advantages.

Looking ahead to 2026, Daodaoquan will focus on product marketing and market development as its core strategies, continuing to concentrate on its main grain and oil business. On one hand, it will promote deep integration of online and offline channels, accelerate digital management transformation, and expand its nationwide market presence. On the other hand, it will optimize product structure, strengthen cost control, and steadily advance key projects such as the Changsha headquarters and Shaanxi Weinan. The company will actively seize opportunities in high-end, branded, and diversified development within the edible oil industry, aiming to deliver more solid operational results to reward shareholders and consumers.

(Editor: Huang Li)