Jingliang Holdings 2025 Annual Report Analysis: Net Profit Excluding Non-Recurring Gains and Losses Plummeted by 2615.79%, Operating Cash Flow Increased by 690.82%

Core Profitability Metrics In-Depth Interpretation

Operating Revenue: Scale Shrinkage Exceeds 30%

In 2025, the company achieved operating revenue of 7.859 billion yuan, a significant decline of 31.28% compared to 11.435 billion yuan in 2024, indicating notable revenue contraction. By business segment, the oil and fat sector generated revenue of 7.127 billion yuan, down 32.04% year-on-year; the food sector generated revenue of 689 million yuan, down 18.79% year-on-year; and other businesses generated revenue of 42 million yuan, down a sharp 57.86% year-on-year. By region, revenue in Northeast, South China, and East China declined by 73.02%, 85.89%, and 47.39% year-on-year, respectively, while only the Southwest region achieved a growth of 29.91%.

Net Profit: Transition from Profit to Loss with Significant Decline

In 2025, the net profit attributable to shareholders of the listed company was -266 million yuan, while it was a profit of 26 million yuan in 2024, representing a substantial decline of 1118.30%, marking a transition from profit to loss. The net profit excluding non-recurring items performed even worse, with a net loss of 279 million yuan in 2025, compared to a profit of 11 million yuan in 2024, a year-on-year decrease of 2615.79%, indicating a severe decline in core profitability.

Earnings Per Share: Comprehensive Turn to Negative

In 2025, the basic earnings per share was -0.37 yuan/share, while in 2024 it was 0.04 yuan/share, a year-on-year decline of 1025.00%; the earnings per share excluding non-recurring items was -0.38 yuan/share, compared to 0.02 yuan/share in 2024, also experiencing a significant drop, with earnings per share turning negative across the board, drastically worsening shareholder returns.

Expense Structure Change Analysis

Total Expenses: Rigid Growth

In 2025, the company’s total expenses amounted to 4.455 billion yuan, compared to 4.101 billion yuan in 2024, a year-on-year increase of 8.63%. Among these, selling expenses, management expenses, and financial expenses all saw growth, while research and development expenses declined.

Selling Expenses: Slight Increase

In 2025, selling expenses were 154 million yuan, compared to 141 million yuan in 2024, a year-on-year increase of 9.86%. In terms of structure, sample and product losses increased significantly by 230.38% year-on-year, and storage and management fees grew by 32.08% year-on-year; these two items were the main drivers of the increase in selling expenses, while employee compensation and promotional expenses both saw year-on-year declines.

Management Expenses: Steady Growth

In 2025, management expenses were 213 million yuan, up from 199 million yuan in 2024, marking a year-on-year increase of 7.15%. The growth was mainly due to a significant increase in intermediary service fees, which amounted to 12.914 million yuan in 2025, up from 6.439 million yuan in 2024, a year-on-year increase of 100.57%. Additionally, leasing and repair fees also increased to varying degrees.

Financial Expenses: Significant Growth

In 2025, financial expenses were 58.44 million yuan, compared to 45.38 million yuan in 2024, a year-on-year increase of 28.72%. The main reason was an increase in interest expenses, with total interest expenses of 65.0817 million yuan in 2025, compared to 60.4924 million yuan in 2024. Meanwhile, interest income dropped from 17.6285 million yuan in 2024 to 14.0284 million yuan in 2025, resulting in a significant growth in financial expenses due to the increase in one and decrease in the other.

R&D Expenses: Year-on-Year Decline

In 2025, R&D expenses were 19.27 million yuan, down from 24.98 million yuan in 2024, representing a year-on-year decrease of 22.85%. In terms of expense structure, wages, material costs, depreciation, and amortization expenses all saw varying degrees of decline, indicating a weakening of R&D investment intensity.

R&D Personnel Situation

In 2025, the number of R&D personnel in the company was 67, down from 86 in 2024, a decrease of 22.09%; the proportion of R&D personnel dropped from 3.55% in 2024 to 2.80% in 2025. In terms of educational background, the number of personnel with a bachelor’s degree decreased from 41 to 30, a year-on-year decrease of 26.83%; the number of master’s degree personnel decreased from 11 to 7, a year-on-year decrease of 36.36%. Regarding age structure, R&D personnel under 30 decreased from 13 to 8, a year-on-year decrease of 38.46%. The quantity and quality of R&D personnel have both declined, which may adversely affect the company’s long-term innovation capability.

Cash Flow Situation Analysis

Operating Activity Cash Flow: Transition from Negative to Positive with Significant Growth

In 2025, the net cash flow from operating activities was 6.467 billion yuan, while it was -1.09 billion yuan in 2024, representing a significant increase of 690.82%, achieving a transition from negative to positive. The main reason was an increase in cash received from sales of goods and a decrease in cash paid for purchases; in 2025, cash received from sales of goods and services was 9.757 billion yuan, down from 12.6 billion yuan in 2024, a year-on-year decline of 22.56%. However, cash paid for purchases decreased from 12.273 billion yuan in 2024 to 8.833 billion yuan in 2025, a year-on-year decrease of 28.03%, with the decrease in expenditures exceeding the decrease in revenues, resulting in a significant improvement in net operating cash flow.

Investment Activity Cash Flow: Transition from Positive to Negative with Significant Decline

In 2025, the net cash flow from investment activities was -0.61 billion yuan, down from 0.34 billion yuan in 2024, a year-on-year decline of 281.23%, transitioning from positive to negative. The main reason was an increase in cash outflows for fixed asset acquisitions; in 2025, cash paid for acquiring fixed assets, intangible assets, and other long-term assets was 100 million yuan, up from 48 million yuan in 2024, a year-on-year increase of 108.89%. Meanwhile, cash inflows from investment activities decreased from 83 million yuan in 2024 to 68 million yuan in 2025, a year-on-year decline of 18.54%.

Financing Activity Cash Flow: Net Outflow Expands

In 2025, the net cash flow from financing activities was -1.79 billion yuan, while it was -0.53 billion yuan in 2024, a year-on-year decline of 233.87%, expanding the net outflow scale. The main reason was a decrease in bank loans, with cash received from loans at 4.183 billion yuan in 2025, compared to 3.898 billion yuan in 2024, a year-on-year increase of only 7.34%. However, cash paid for debt repayment increased from 3.809 billion yuan in 2024 to 4.242 billion yuan in 2025, a year-on-year increase of 11.37%, while cash paid for dividend distribution, profit, or interest repayment also increased.

Potential Risks Faced

2. Risk of Intensified Market Competition: The oil and fat and food processing industries are highly competitive, with a significant decline in core business revenue, which may lead to market share being seized by competitors. The oil and fat sector’s revenue decline exceeds the overall revenue decline, increasing the market competition pressure faced.

3. Risk of Raw Material Price Fluctuations: The prices of raw materials such as soybeans and oils needed for production are significantly affected by international markets and climate factors. Price fluctuations can directly impact the company’s production costs and profitability. In 2025, the company’s core business incurred losses, and fluctuations in raw material prices may further exacerbate profitability pressures.

4. Risk of R&D Personnel Turnover: In 2025, both the quantity and quality of R&D personnel in the company declined, and turnover of R&D personnel may lead to a decrease in the company’s innovation capability, making it difficult to launch new products to meet market demands, further affecting the company’s market competitiveness.

5. Risk of Cash Flow Fluctuations: Although operating cash flow significantly improved in 2025, both investment and financing cash flows experienced net outflows, with the scale of net outflows expanding. The company’s capital chain may face certain pressures, and fluctuations in operating cash flow may impact normal production and operation.

Director and Senior Management Compensation Situation

In 2025, the total pre-tax compensation received by the company’s directors and senior management was 4.3998 million yuan, including:

• Chairman Wang Chunli: Received a total pre-tax compensation of 792,100 yuan from the company during the reporting period;
• General Manager Zhang Cunliang: Received a total pre-tax compensation of 170,900 yuan from the company during the reporting period (Zhang Cunliang assumed office in September 2025, with a short tenure);
• Deputy General Manager Dong Zhiling: Received a total pre-tax compensation of 539,000 yuan from the company during the reporting period;
• Deputy General Manager Lan Xiangdong: Received a total pre-tax compensation of 544,400 yuan from the company during the reporting period;
• Chief Financial Officer Guan Ying: Received a total pre-tax compensation of 664,700 yuan from the company during the reporting period.

Regarding the departing executives, former General Manager Gao Lei received a pre-tax compensation of 482,500 yuan during the reporting period, and former Deputy General Manager Zeng Changbai received a pre-tax compensation of 388,900 yuan. Overall, the compensation of the company’s directors and senior management is linked to the company’s performance. In 2025, as the company’s performance declined sharply, the total compensation for directors and senior management also saw a noticeable decrease compared to 8.4957 million yuan in 2024.

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Editor: Xiao Lang Quick Report