Zhongyida 2025 Annual Report Analysis: Net Investment Cash Flow Drops by 1404.72%, Net Assets Attributable to Parent Increase by 81.16% to 120 million yuan

Operating Revenue: Slight Decline with Clear Product Structure Differentiation

In 2025, Zhongyida achieved operating revenue of 1,044,542,300 yuan, a year-on-year decrease of 5.01% compared to 1,099,674,500 yuan in the same period last year. The decline in revenue is mainly due to the differentiation of product structure: the core product series of pentaerythritol benefited from the improvement in market supply and demand, with sales revenue increasing by 11.74% year-on-year to 619,034,400 yuan; however, the edible alcohol and by-products business suffered a significant decrease in sales revenue by 23.89% to 261,580,800 yuan, while the revenue from the trimethylolpropane series products also saw a year-on-year decline of 20.72%, dragging down the overall revenue performance.

From the quarterly data, the company’s revenue showed a recovery trend quarter by quarter, with the fourth quarter achieving operating revenue of 282,896,500 yuan, the highest of the year, indicating a certain degree of marginal improvement in market demand in the second half of the year.

Net Profit: Successfully Turned from Loss to Profit, Better Performance in Deducted Non-recurring Net Profit

In 2025, the net profit attributable to shareholders of the listed company was 50,710,000 yuan, turning from a loss of -14,083,900 yuan in the same period last year to a profit; the net profit deducting non-recurring gains and losses was 51,162,800 yuan, also achieving a turnaround, and the scale was slightly higher than the attributable net profit, indicating that the company’s earnings mainly came from its core business, with non-recurring gains and losses having minimal impact on performance.

From a quarterly perspective, the second quarter had the best profit performance, with the attributable net profit reaching 25,774,000 yuan, while the fourth quarter’s deducted net profit was -9,864,200 yuan, showing a loss in a single quarter, necessitating attention to its seasonal fluctuations or the impact of short-term business adjustments.

Earnings Per Share: From Negative to Positive, Improved Earnings Quality

In 2025, the company’s basic earnings per share were 0.0473 yuan/share, and the deducted earnings per share were 0.0478 yuan/share, both turning from negative to positive compared to -0.0131 yuan/share and -0.0199 yuan/share in the same period last year, reflecting a fundamental improvement in the company’s earnings per share level, and the deducted earnings per share being slightly higher than the basic earnings per share further confirms that the core of profitability comes from the main business.

Expenses: Overall Control Shows Results, Significant Reduction in R&D Expenses

In 2025, the company’s total period expenses amounted to 1,009,324,308.3 yuan, a decrease from 1,139,155,133.1 yuan in the same period last year, indicating initial effectiveness in expense management.

Selling Expenses: Year-on-Year Decrease of 14.22%

During the reporting period, selling expenses were 13,127,400 yuan, a decrease of 14.22% compared to 15,304,200 yuan in the same period last year, mainly due to the company optimizing sales strategies and reducing related expenses, which is also related to the contraction of businesses such as alcohol.

Management Expenses: Slight Decline, Remain Stable

Management expenses were 42,876,100 yuan, a slight decrease of 1.48% compared to 43,518,200 yuan in the same period last year, remaining stable overall, indicating that the company’s management structure and cost expenditures are in a relatively stable state.

Financial Expenses: Year-on-Year Decrease of 13.93%

Financial expenses were 32,371,000 yuan, a decrease of 13.93% compared to 37,608,000 yuan in the same period last year, mainly benefiting from the optimization of the company’s debt scale, with a significant reduction in bank loan repayments this period, alleviating interest expenditure pressure.

R&D Expenses: Decrease of 33.90%, Adjustments in R&D Process

R&D expenses were 11,558,000 yuan, a significant decrease of 33.90% compared to 17,485,100 yuan in the same period last year, which the company stated was mainly due to different stages of R&D projects. It is important to monitor whether the phased decrease in R&D investment will affect the company’s long-term technological competitiveness.

R&D Personnel Situation: No Relevant Details Disclosed

Cash Flow: Operating Cash Flow Contracts, Investment Cash Flow Drastically Exits

Operating Activity Cash Flow: Year-on-Year Decrease of 17.76%

In 2025, the net cash flow generated from operating activities was 202,586,700 yuan, a year-on-year decrease of 17.76% compared to 246,325,500 yuan in the same period last year, mainly due to a slight decline in revenue scale and changes in cash collection rhythm caused by factors such as raw material procurement and production arrangements. However, from the quarterly data, the operating cash flow for the last three quarters was positive and increased quarter by quarter, reaching 81,648,500 yuan in the fourth quarter, indicating a recovery in the cash generation capacity of operating activities.

Investment Activity Cash Flow: Net Decrease of 1404.72%

The net cash flow generated from investment activities was -4,600,700 yuan, a significant year-on-year decrease of 1404.72% compared to 352,600 yuan in the same period last year, mainly due to an increase in cash paid for the purchase and construction of fixed assets this period, as the company continues to invest in production equipment, technical transformation, etc., aimed at improving production efficiency and product competitiveness.

Financing Activity Cash Flow: From Large Net Outflows to Small Net Outflows

The net cash flow generated from financing activities was -45,978,900 yuan, a significant narrowing compared to -206,693,100 yuan in the same period last year, mainly due to a significant reduction in bank loan repayments this period, alleviating the company’s debt pressure and greatly reducing cash consumption on the financing side.

Possible Risks: Multiple Challenges in Industry, Policy, and Operations

2. Industry Cycle Risk: The alcohol and by-products industry is highly cyclical; if industry overcapacity persists or raw material prices fluctuate, it will pressure the profitability of related businesses; while the polyol industry has opportunities for product structure upgrades, changes in demand from downstream industries such as coatings and lubricants may also affect the company’s performance.
3. Policy Compliance Risk: In 2025, policies in the hazardous chemicals and environmental protection fields were intensively introduced, including the “Hazardous Chemicals Safety Law” and solid waste treatment regulations, requiring the company to continuously invest to meet compliance requirements; failure to keep up in a timely manner may lead to penalties or production suspension risks.
4. Market Competition Risk: The competition among leading companies in the polyol industry is fierce; if the company cannot sustain its technological advantages and production scale, or if prices of core products such as pentaerythritol fluctuate, it will directly affect profitability levels.
5. Business Structure Risk: The company’s profitability heavily relies on the pentaerythritol series products, with the edible alcohol business continuously at a loss, and the risk of a single business structure still exists; if there are changes in the market for core products, there will be a lack of buffer space for performance.

Director and Supervisor Compensation: Executive Salaries Remain Stable

During the reporting period, the pre-tax total remuneration received by Chairman Shen Miao from the company was 650,000 yuan, while General Manager Cai Wenjie received a pre-tax total remuneration of 630,000 yuan, Deputy General Manager Zhu Xinguang received a pre-tax total remuneration of 550,000 yuan, and Finance Director Cai Wenjie (who is the same person as the General Manager) received a pre-tax total remuneration of 630,000 yuan. Overall, the executive salaries of the company are within a reasonable range, matching the company’s performance of turning a profit in 2025, with no abnormal fluctuations.

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Editor: Xiao Lang Quick Report