Shengxin Lithium Energy (002240) 2025 Annual Report Summary: Revenue Growth Without Profit Increase, Significant Rise in the Proportion of Three Expenses

According to publicly available data compiled by Securities Star, Shengxin Lithium Energy (002240) recently released its 2025 annual report. As of the end of this reporting period, the company’s total operating revenue was 5.064 billion yuan, an increase of 10.54% year-on-year, while the net profit attributable to shareholders was -888 million yuan, a decrease of 42.87% year-on-year. Looking at the quarterly data, the total operating revenue for the fourth quarter was 1.97 billion yuan, an increase of 81.81% year-on-year, while the net profit attributable to shareholders was -136 million yuan, an increase of 15.12% year-on-year. During this reporting period, Shengxin Lithium Energy saw a significant increase in the proportion of three expenses, with the total of financial expenses, selling expenses, and management expenses accounting for a year-on-year increase of 32.54% of total revenue.

This data falls short of most analysts’ expectations; previously, analysts generally expected a net profit of around 242 million yuan for 2025.

The data indicators released in this financial report performed moderately. Among them, the gross profit margin was 18.35%, a year-on-year increase of 657.42%, the net profit margin was -19.1%, a year-on-year decrease of 38.05%, and the total of selling expenses, management expenses, and financial expenses was 893 million yuan, with the three expenses accounting for 17.64% of revenue, a year-on-year increase of 32.54%. The net asset value per share was 11.2 yuan, a year-on-year decrease of 14.77%, the operating cash flow per share was 1.04 yuan, a year-on-year decrease of 27.86%, and the earnings per share was -0.98 yuan, a year-on-year decrease of 42.03%.

The reasons for the significant changes in financial items in the financial statements are as follows:

1. The change in selling expenses was 37.85%, due to an increase in employee compensation and office expenses this period.
2. The change in management expenses was 18.13%, due to an increase in depreciation and amortization expenses, intermediary, and information disclosure expenses this period.
3. The change in financial expenses was 102.05%, due to an increase in exchange losses caused by currency fluctuations this period.
4. The change in research and development expenses was 67.07%, due to an increase in lithium product R&D investment compared to the same period last year.
5. The change in net cash flow from operating activities was -27.86%, due to a decrease in cash received from selling goods, providing services, and government subsidies compared to the same period last year.
6. The change in net cash flow from investing activities was 32.31%, due to a decrease in cash paid for acquiring fixed assets, intangible assets, and other long-term assets compared to the same period last year.
7. The change in net cash flow from financing activities was 415.86%, due to an increase in cash received from loans compared to the same period last year.
8. The change in cash and cash equivalents was 60.35%, due to a decrease in investment expenditure this period.
9. The change in receivables was 157.89%, due to an increase in sales of lithium salt products this period.
10. The change in long-term equity investments was -74.5%, due to the acquisition of equity in Qicheng Mining this period.
11. The change in fixed assets was 42.29%, due to the capitalization of construction in progress this period.
12. The change in construction in progress was -82.65%, due to the capitalization of construction in progress this period.
13. The change in short-term loans was 9.44%, due to an increase in working capital loans this period.
14. The change in long-term loans was 13.08%, due to an increase in long-term loans this period.
15. The change in intangible assets was 344.81%, due to an increase in mining rights and exploration rights assets from the acquisition this period.

Securities Star’s value investment circle financial report analysis tool shows:

• Business Evaluation: Last year’s net profit margin was -19.1%, indicating that the added value of the company’s products or services is not high after accounting for all costs. Historical annual report data shows that the median ROIC for the company over the past 10 years is 2.52%, indicating weak investment returns, with the worst year, 2025, having an ROIC of -4.03%, reflecting extremely poor investment returns. The company’s historical financial reports have been quite mediocre, with 17 annual reports since its IPO, and it has recorded losses in 6 of those years. Without shell listing or other factors, value investors typically do not consider such companies.

• Business Model: The company’s performance primarily relies on capital expenditure; it is essential to closely monitor whether the company’s capital expenditure projects are cost-effective and whether capital expenditures are rigid and face funding pressure. A careful study of the actual circumstances behind these driving forces is necessary.

• Business Breakdown: The company’s net return on operating assets over the past three years (2023/2024/2025) was 6.2%/–/–, with net operating profits of 693 million/-634 million/-967 million yuan, and net operating assets of 11.21 billion/11.954 billion/14.817 billion yuan.

  The company’s working capital/revenue over the past three years (2023/2024/2025), which reflects the amount of funds the company needs to advance for every yuan of revenue generated, was 0.4/0.31/0.28, with working capital (the money the company spends in its operations) being 3.207 billion/1.427 billion/1.419 billion yuan, and revenues being 7.951 billion/4.581 billion/5.064 billion yuan.

The company’s financial health check tool indicates:

1. It is advisable to pay attention to the company’s cash flow situation (cash and cash equivalents/short-term liabilities is only 40.12%, and the average operating cash flow over the past three years/short-term liabilities is only 17.62%).
2. It is advisable to pay attention to the company’s debt situation (the interest-bearing asset-liability ratio has reached 34.91%, with a current ratio of only 0.85).
3. It is advisable to pay attention to the company’s accounts receivable situation (the annual report’s net profit attributable to shareholders is negative).

This company is held by two star fund managers, who have recently increased their positions. The most followed fund manager holding this company is Shi Cheng from Guotou Ruibin Fund, who ranks among the top fifty fund managers in the 2025 Securities Star public fund manager leaderboard, with a current total fund size of 9.964 billion yuan, having accumulated 7 years and 1 day of experience. Analyzing his past performance, this fund manager has outstanding fundamental stock-picking ability and excels in uncovering value and growth stocks.

The fund with the largest holding in Shengxin Lithium Energy is GF Advanced Manufacturing Stock A, which currently has a scale of 4.067 billion yuan, with the latest net value being 1.5264 (March 27), up 0.63% from the previous trading day, and up 19.92% over the last year. The current fund manager is Zheng Chengran.

The above content is organized by Securities Star based on publicly available information and generated by AI algorithms (Internet Information Office Filing No. 310104345710301240019), and does not constitute investment advice.