Lushare Observation | Net profit year-over-year increased by 32.87%, Victory Shares' 2025 annual report released

By Zhou Tao

On March 24, 2025, Shandong Shengli Co., Ltd. (000407.SZ, hereinafter referred to as “Shengli Shares”) released its 2025 annual report.

Public information shows that Shengli Shares is located in the Jinan High-tech Zone in Shandong Province. Its incorporation date is May 11, 1994, and its listing date is July 3, 1996. The company’s main business covers plastic pipes, biotechnology, domestic and international trade, and chemical pesticides. It also provides natural gas terminal application services. Its current controlling shareholder is China Petroleum Gas Investment Group Co., Ltd.

In 2025, as the “dual carbon” strategy is further deepened and the energy mix continues to adjust, this long-established listed company, which is primarily focused on clean natural gas, achieved operating revenue of RMB 4.17B, a year-on-year slight decrease of 1.44%. Net profit attributable to shareholders of the listed company reached RMB 156 million, up 32.87% year over year. Notably, the growth rate of net profit after deducting non-recurring gains and losses is as high as 60.09%, far exceeding the growth rate of net profit.

During the reporting period, the company’s total expenses were RMB 407 million, down 19.12% year over year. In particular, the reduction in selling expenses and financial expenses was especially significant. Selling expenses decreased 17.69% year over year. The company attributed this to an optimization of its market expansion model; financial expenses fell by 30.02%, mainly benefiting from adjustments to its financing structure, reduced loans, and lower financing costs. With revenue scale remaining basically on par, the strong control over expenses directly created room for profit growth.

At the same time, the company leveraged asset optimization to improve efficiency through a “quality enhancement and efficiency improvement” initiative, and investment gains reached RMB 36.2422 million, accounting for 13.65% of total profit. The report states that the growth in net profit benefited from “increased investment gains, precise control of costs and expenses, and effective improvement in asset efficiency.”

By business segment, natural gas and value-added businesses are its core lines, accounting for 78.44% of revenue. In 2025, its natural gas and value-added businesses generated operating revenue of RMB 3.27B, only a slight year-on-year decrease of 0.56%, maintaining near parity amid fluctuations in industry and market conditions, with strong operational stability.

In 2025, the equipment manufacturing business achieved operating revenue of RMB 898 million, down 4.50% year over year; gross margin was 5.44%, up slightly by 0.12 percentage points year over year. As a leading supplier of polyethylene (PE) pipeline solutions in China, Shengli Shares is a core supplier for major public utility enterprises such as Towngas, China Resources Gas, and China Gas. Its brand and quality barriers are solid.

Image source: Sina Finance (Sino pictures)

However, the company’s R&D investment amount in 2025 was only RMB 22.5556 million, a sharp year-on-year decline of 58.37%; the number of R&D personnel decreased from 259 to 203, including master’s degree holders decreasing from 18 to 10. Among the more than twenty R&D projects listed in the annual report, most are already in a “completed” status.

Focusing on the clean energy core business that it depends on for survival, the report reveals the general challenges faced by the industry as well as the company’s own regional strategic choices. Its Shandong base region revenue fell by 4.61%, while the Henan region saw an even sharper decline of 14.79%.

In sharp contrast, revenue in the Guangxi region surged 54.21%, and provinces such as Jiangxi and Liaoning also achieved double-digit growth. This regional performance clearly outlines the shift in the company’s strategic focus—while stabilizing its existing market share, it has put full effort into developing emerging markets such as the Southwest and South China, and has already achieved notable results. The company said that the number of industrial customer development grew against the trend, which is a highlight of its market work.

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