Dajin Heavy Industries Submits Best Annual Report Since IPO Amid Surging Overseas Orders and Rapidly Rising Financial Leverage Ratio

Reporter Zhao Yangge from Jiemian News

With the disclosure of the 2025 annual report, Dajin Heavy Industries (002487.SZ) delivered a performance report that set new highs in both revenue and net profit since its listing, stunning the market.

This offshore wind power equipment supplier has successfully seized the European energy transition opportunity through a forward-looking overseas expansion strategy, leading to explosive growth in export business, which has become the core engine driving its performance surge.

However, behind this impressive “going global” report, risks such as heavy reliance on major clients, asset expansion, and rising financial leverage are gradually surfacing, laying the groundwork for future stable development that requires close attention.

Dajin Heavy Industries achieved operating revenue of 6.174 billion yuan in 2025, a significant increase of 63.34% year-on-year; net profit attributable to shareholders of the listed company reached 1.103 billion yuan, up 132.82% year-on-year; net profit after deducting non-recurring gains and losses was 1.077 billion yuan, an increase of 148.68%. This performance set a new high since the company’s listing.

Along with the high growth in performance, Dajin Heavy Industries plans to distribute a cash dividend of 0.87 yuan (tax included) per 10 shares to all shareholders, totaling 55.4842 million yuan (tax included). Including the interim dividend of 54.8464 million yuan paid in 2025, the total annual cash dividend will reach 110 million yuan, accounting for 10% of the company’s net profit.

Public information shows that Dajin Heavy Industries is a core equipment supplier in the offshore wind power sector. Since 2019, the company has been exploring and developing the European offshore wind market, gradually securing multiple overseas project orders from 2022. By 2025, the company experienced a comprehensive explosion in export orders.

In 2025, Dajin Heavy Industries’ export revenue reached 4.597 billion yuan, a sharp increase of 165.26% year-on-year; export business revenue accounted for 74.46% of total revenue, up 28.61 percentage points from the previous year. Meanwhile, in 2025, the gross profit margin of export business reached 33.95%, and the contribution of exported products to overall gross profit increased significantly from 59.16% to 81.06%.

Export Business Data   Compiled by Jiemian News

Dajin Heavy Industries stated, “The company’s revenue structure is dominated by overseas business. As of the end of 2025, the total overseas order backlog exceeded 100 billion yuan, mainly concentrated in delivery over the next two years, covering offshore wind projects in the North Sea, Baltic Sea, and other regions.”

In contrast, the company’s domestic business declined, with revenue dropping from 2.047 billion yuan in 2024 to 1.577 billion yuan in 2025, and its proportion of total revenue decreasing from 55.15% to 25.54%.

Regarding the double growth in revenue and net profit in 2025, Dajin Heavy Industries attributes it to three main reasons:

• Rapid increase in delivery volume and value of overseas offshore wind projects;
• Higher standards in the construction of exported offshore engineering products, bringing greater added value;
• The company provides systematic services including offshore wind equipment construction, transportation, and localized installation, further increasing the overall project value.

Since 2022, geopolitical tensions in Europe have significantly heightened energy security concerns. Over the past five years, offshore wind auction capacity in Europe has totaled 60GW.

In 2025, Europe completed the second-highest auction scale in history, reaching 15.3GW, including: UK 8.44GW, Poland 3.44GW, France 1.5GW, Germany 1GW, Ireland 0.9GW.

Source: Announcement

Looking ahead to the next five years, according to the “European Wind Power Installation Outlook” report released by Wind Europe, Europe will add 151GW of installed capacity, with an average annual installation of 30GW. It is estimated that offshore wind will account for about 23% of the new capacity, meaning Europe’s offshore wind annual installation is expected to be around 7GW over the next five years.

It can be said that Dajin Heavy Industries’ rapid development in recent years has undoubtedly benefited from the strong momentum of Europe’s energy transition.

However, behind this fast growth, the annual report also reveals some noteworthy risks.

First, the concentration of major clients has significantly increased.

The 2025 annual report shows that the top five customers of Dajin Heavy Industries had a combined sales amount of 4.605 billion yuan, accounting for 74.59% of total sales. In 2022, this proportion was only 35.83%. This indicates the company’s operations are becoming increasingly dependent on key clients. Any fluctuations in the core clients’ business could directly transmit risks to Dajin Heavy Industries.

In the annual report, the company’s customer names are anonymized. Jiemian News contacted the listed company, and a relevant person explained that the company has confidentiality agreements with each customer, many of whom are overseas enterprises. Not disclosing their names is to better maintain cooperation and ensure smooth order acquisition.

Second, the company’s assets are “expanding”.

To accommodate continuous growth in project orders, Dajin Heavy Industries invested heavily in base construction, dock engineering, and other areas in 2025.

The annual report shows that the balance of construction in progress was 1.562 billion yuan at the end of the period, an increase of about 120% from 708 million yuan at the beginning; fixed assets increased from 2.309 billion yuan to 3.132 billion yuan, a growth of approximately 35%. As these construction-in-progress projects are gradually transferred into fixed assets, the subsequent depreciation and amortization will impact future profits, which warrants careful assessment.

Third, the level of financial leverage has increased.

According to the annual report, Dajin Heavy Industries’ net cash flow from operating activities in 2025 was 1.227 billion yuan, a 13.26% increase from 2024. However, net cash flow from investing activities was -2.664 billion yuan, a drastic change of -1322.79%.

To seize market opportunities and achieve rapid expansion, the company has significantly increased its financial leverage.

Specifically, short-term borrowings rose from 3.403 million yuan in 2024 to 289 million yuan in 2025, a year-on-year increase of about 750%; long-term borrowings increased from 2.65 billion yuan to 12.82 billion yuan, up approximately 384%; non-current liabilities due within one year reached 355 million yuan, far higher than 53.59 million yuan in 2024.

Under these combined effects, the company’s asset-liability ratio rose from 32.38% in 2023 to 42.86% in 2025. Additionally, the company increased R&D investment, which reached 288 million yuan in 2025, up 58.33% from 182 million yuan in 2024.

Source: Announcement

Fourth, growth slowed in the fourth quarter, with future performance to be observed.

Jiemian News noted that in the fourth quarter of 2025, Dajin Heavy Industries’ growth slowed. Revenue growth in this quarter was 7.12% year-on-year, and net profit growth was 12.59%, both significantly lower than the previous three quarters.

In response, a relevant person from Dajin Heavy Industries explained that the projects recognized each quarter vary, leading to performance fluctuations. “Due to factors such as project delivery and product structure, the company’s performance experiences phased reasonable fluctuations. The company strictly follows accounting standards to recognize revenue, and overall operations remain steady and orderly,” the company also stated that, based on current order shipment plans and production schedules, shipment in the first quarter remains highly optimistic.