Jinlei Co., Ltd. 2025 Annual Report Interpretation: Revenue Increased 26.54% to 2.489 Billion Yuan, Net Profit Surged 81.97% to 314 Million Yuan

MaticHoleFiller · 2026-03-26T04:54:01+00:00

The company achieved a strong profit rebound in 2025, with operating revenue and net profit showing significant year-over-year growth, primarily driven by market expansion in offshore wind power projects and precision shaft products. Simultaneously, research and development expenses increased, improving the educational structure of the R&D team. However, cash flow faced pressure, with operating cash flow turning negative from positive, triggering short-term liquidity risks. Additionally, risk factors such as industry cycle fluctuations, changes in trade policies, raw material prices, and production capacity absorption warrant continued attention. Management compensation is tied to performance, promoting interest alignment.

MaticHoleFiller

2026-03-26 04:54:01

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Core Profitability Metrics Significantly Recovered

During the reporting period, the company’s profitability rebounded strongly, with several key indicators showing substantial year-over-year growth:

Indicator	2025	2024	Year-over-Year Change
Operating Revenue (billion yuan)	2.489	1.967	+26.54%
Net Profit Attributable to Shareholders of the Listed Company (billion yuan)	0.314	0.173	+81.97%
Non-Recurring Net Profit Attributable to Shareholders (billion yuan)	0.315	0.174	+81.24%
Basic Earnings Per Share (yuan/share)	0.9870	0.5363	+84.04%
Non-Recurring Basic Earnings Per Share (yuan/share)	0.9898	0.5392	+83.57%

The revenue growth was mainly driven by two factors: first, the capacity release of the “Offshore Wind Power Core Components Digital Manufacturing Project,” which led to increased shipments and prices of wind turbine shaft products, boosting wind power industry revenue by 29.92% to 1.87 billion yuan; second, the expansion of other precision shaft markets, with revenue increasing by 27.62% to 480 million yuan.

Net profit growth far exceeded revenue growth, primarily due to profitability recovery: as capacity utilization improved, the overall gross profit margin of wind turbine shaft products increased by 6.24 percentage points year-over-year to 27.21%. Meanwhile, the impact of non-recurring gains and losses was minimal, with non-recurring net profit and net profit growth rates remaining aligned, indicating high profit quality.

Expense Structure Shows R&D-Driven Characteristics

In 2025, the company’s total operating expenses reached 272 million yuan, up 21.17%, with noticeable changes in expense structure alongside business expansion:

Expense Item	2025 (10,000 yuan)	2024 (10,000 yuan)	YoY Change	Reason for Change
Selling Expenses	28,343.9	23,291.4	+21.69%	Expanded other precision shaft businesses, strengthened sales team and market development
Management Expenses	136,673.6	120,919.3	+13.03%	Employee compensation, depreciation, etc., increased naturally with business scale
Financial Expenses	-12,791.0	-24,212.0	+47.17%	Increased procurement and project construction costs for assembly business, decreased interest income due to lower deposit rates
R&D Expenses	119,652.6	87,243.9	+37.15%	Increased investment in new products for casting and industrial forging, several new projects underway

R&D investment for the year totaled 1.20 billion yuan, up 37.15%, accounting for 4.81% of operating revenue, up from 4.43%. R&D personnel increased from 221 to 264, a 19.46% rise, including an increase in master’s degree holders from 10 to 17, a 70% growth, significantly optimizing the team’s educational structure.

Cash Flow Under Pressure, Short-Term Liquidity Risks Need Attention

In 2025, the company’s cash flow showed significant fluctuations, with operating cash flow turning negative:

Cash Flow Item	2025 (10,000 yuan)	2024 (10,000 yuan)	YoY Change
Net Cash from Operating Activities	-18,959.85	32,805.62	-157.79%
Net Cash from Investing Activities	-25,121.73	-32,529.65	+22.77%
Net Cash from Financing Activities	-1,881.85	-62,088.58	+96.97%

The negative operating cash flow was mainly due to increased procurement in assembly business, with payments for goods rising 62.44% to 1.853 billion yuan, while sales cash inflows (2.223 billion yuan) could not fully cover expenses. The narrowing of net cash from investing activities was due to the completion of offshore wind power core components digital manufacturing projects, reducing capital expenditures by 33.88%. The significant easing of financing cash flow pressure was mainly because last year’s large debt repayments (3.666 billion yuan), with no large repayment this period.

Overall, the company’s ending cash and cash equivalents decreased from 1.127 billion yuan to 684 million yuan, a net reduction of 455 million yuan, indicating increased short-term liquidity pressure.

Risks Still Require Ongoing Attention

Industry Cycle Risks: If downstream wind power demand slows or technological routes change, company orders and capacity utilization could be pressured, affecting profitability.
Trade Policy Risks: With over 30% of overseas business, changes in global green energy trade rules and regional trade barriers could raise operating costs and impact international expansion.
Raw Material Price Risks: Fluctuations in prices of key raw materials like steel, influenced by environmental policies and geopolitical conflicts, could pressure cost control and gross margins.
Capacity Absorption Risks: After the commissioning of high-end transmission equipment projects like the Sci-Tech Industrial Park, if market expansion falls short, new capacity may not be fully absorbed, and fixed asset depreciation costs will increase.

Executive and Director Compensation Tied to Company Performance

During the reporting period, compensation for directors, supervisors, and senior management increased in line with performance growth. Key management salaries were as follows:

Chairman Yi Tinglei: pre-tax total of 440,000 yuan;
General Manager Zhang Zhen: pre-tax total of 1.3948 million yuan;
Vice General Manager Wang Ruiguang: pre-tax total of 620,900 yuan;
Vice General Manager Lin Liyuan: pre-tax total of 567,700 yuan;
Vice General Manager Guo Fu: pre-tax total of 944,700 yuan;
Vice General Manager Lu Huilong: pre-tax total of 977,200 yuan;
CFO Zhou Li: pre-tax total of 987,300 yuan.

Compensation decisions are compliant with procedures, with senior management’s pay directly linked to company performance and individual responsibilities, effectively aligning management interests with shareholders.

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