Noli Co., Ltd. 2025 Annual Report Analysis: Non-recurring Net Profit Down 17.30%, Financial Expenses Drop 428.34%

Operating Revenue: Year-over-year Slight Decline of 4.14%, Business Structure Diverges

In 2025, the company achieved operating revenue of RMB 6.69B, down 4.14% year over year. Of this, revenue from its main business was RMB 6.66B, down 4.04% year over year. By business segment, its intelligent manufacturing equipment business generated revenue of RMB 3.82B, up 2.81% year over year, demonstrating steady performance. The smart logistics systems business, affected by geopolitical fluctuations and regional trade disputes, generated RMB 2.84B in revenue, down sharply by 11.94% year over year, becoming the main factor dragging down overall operating revenue. By region, domestic revenue was RMB 2.74B, up 4.40% year over year; overseas revenue was RMB 3.92B, down 9.19% year over year, and overseas market performance was lackluster.

Net Profit and Non-GAAP Net Profit: Both Profits Decline, Non-Recurring Gains’ Support Becomes More Prominent

Net profit attributable to shareholders of listed companies was RMB 428 million, down 7.08% year over year; net profit after deducting non-recurring gains and losses was RMB 328 million, down significantly by 17.30%, with the decline far exceeding that of net profit. Total non-recurring gains and losses were RMB 101 million, mainly from government grants, fair value changes in financial assets, and gains/losses from disposals, etc. Their contribution to net profit increased to 23.6%, which to a certain extent cushioned the impact of the decline in main-business profitability.

Earnings per Share: Falling in Step With Declining Profitability

Basic earnings per share were RMB 1.67 per share, down 6.70% year over year. Basic earnings per share after deducting non-recurring gains and losses were RMB 1.27 per share, down 17.53% year over year, consistent with the trends in changes of net profit and non-GAAP net profit, reflecting an overall retreat in the company’s profitability level.

Expenses: Financial Expenses Shift From Profit to Loss, R&D Investment Continues to Grow

The company’s period expenses saw a significant change in overall structure:

• Selling expenses: RMB 308 million, down 2.01% year over year, mainly due to optimized market promotion activities and expense controls.
• Administrative expenses: RMB 393 million, down 0.91% year over year, a relatively small decline, staying relatively stable.
• Financial expenses: -RMB 70.25 million, down sharply by 428.34% year over year, shifting from profit to loss compared with the prior year, mainly due to large foreign exchange gains caused by exchange rate movements.
• R&D expenses: RMB 273 million, up 13.07% year over year; the R&D expense ratio to operating revenue increased to 4.08%. The company continued to expand R&D investment in fields such as intelligent machinery technology and intelligent upgrades. During the full year, 95 R&D projects were approved for initiation; among them, 6 provincial-level new product identifications were completed, and key technology breakthroughs achieved phased results.

R&D Personnel: Team Size Stable, Structure Optimized

The number of R&D personnel was 724, accounting for 15.41% of the company’s total headcount. The team’s size remained stable. In terms of educational structure, there were 11 doctoral students, 87 master’s students, and 418 undergraduates; the proportion of high-education talent exceeds 70%. In terms of age structure, R&D personnel under 30 accounted for 38.5%, and those aged 30–40 accounted for 34.8%. Young R&D personnel became a core force, injecting vitality into technological innovation.

Cash Flow: Operating Cash Flow Steady, Cash Flows From Investing and Financing Activities Under Pressure

• Net cash flow from operating activities: RMB 837 million, up 9.39% year over year, mainly benefiting from improved quality of sales collections and cost control. Cash flow from operating activities remained steady.
• Net cash flow from investing activities: -RMB 477 million, down 32.68% year over year, mainly because the period saw an increase in payments for short-term wealth management products and operating equity investment payments, expanding investment outlays.
• Net cash flow from financing activities: -RMB 389 million, down 32.51% year over year, mainly due to a reduction in operating borrowings obtained during the period, along with increased repayment of debt and increased dividend distribution expenditures.

Potential Risks Ahead: Multiple Risks Interwoven, With Overseas Market and FX Risks Stand Out

2. Risk of Overseas Geopolitical Volatility: More than half of the company’s revenue comes from overseas markets. Factors such as global geopolitical conflicts and the rise of trade protectionism may lead to a decline in overseas demand, affecting performance.
3. Risk of Exchange Rate Fluctuations: Exports and overseas business account for a significant share. Large fluctuations in exchange rates will directly affect the company’s financial condition. Risk needs to be hedged through approaches such as foreign exchange derivative transactions.
4. Risk of Collection of Accounts Receivable: As the scale of operations expands, the size of accounts receivable grows accordingly. If customers encounter credit issues, it may lead to delayed collections or losses from bad debts.
5. Risk of Management Integration: As the company extends its industrial chain and has more subsidiaries, the difficulty of management increases across different regions and cultural backgrounds. If integration falls short of expectations, it may affect operational efficiency.

Compensation of Executives and Directors/Senior Management: Core Executive Compensation Stable, Part of Management Affected by Changes in Shares

• Chairman Ding Yi: The total pre-tax remuneration received from the company during the reporting period was RMB 1.06M, with compensation staying stable.
• General Manager Mao Ying: Total pre-tax remuneration was RMB 1.01M, basically the same as last year.
• Deputy General Manager Ding Sheng: Total pre-tax remuneration was RMB 1.24M. Due to personal capital needs, he reduced holdings by 2.5621 million shares, but the compensation level remained the highest among executives.
• Deputy General Manager Zhong Suoming: Total pre-tax remuneration was RMB 880,000, with no obvious year-over-year change.
• Chief Financial Officer Mao Xingfeng: Total pre-tax remuneration was RMB 882.5k, with compensation staying stable.

Overall, Noli Co., Ltd. saw both revenue and profit decline in 2025 due to weak overseas market conditions and drag from the smart logistics business. However, operating cash flow remained steady, and R&D investment continued to ramp up. In the future, it will be important to focus on risks in overseas markets, exchange rate fluctuations, and internal management integration, while also improving business structure and the quality of profitability by relying on technological innovation to drive optimization.

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Responsible Editor: Xiao Lang Express