StarMap Telemetry and Control 2025 Annual Report Analysis: Net profit increased by 18.66% to 101 million yuan, financial expenses dropped by 161.21%

Interpretation of Core Profitability Metrics

Stable Growth in Operating Revenue

In 2025, Star Map Measurement & Control achieved operating revenue of 321,235,941.89 yuan, up 11.41% from 288,346,125.83 yuan in 2024. By business segment, technology development and services remain the core source of revenue, generating revenue of 245,318,497.13 yuan, up 9.52% year over year. Software sales posted an impressive growth rate, with revenue of 14,348,672.57 yuan, up 47.07% year over year. System integration revenue was 44,147,273.71 yuan, doubling year over year with a 116.10% increase. However, the revenue from measurement and control ground system construction dropped 49.00% year over year to 17,421,498.48 yuan, becoming the only business segment with declining revenue.

Divergence Between Net Profit and Non-GAAP Net Profit

In 2025, the company’s net profit attributable to shareholders of listed companies was 100,831,643.17 yuan, up 18.66% year over year. However, non-GAAP net profit was 63,881,752.34 yuan, up only 5.92% year over year; the gap in growth rates between the two is significant. The main reason is that the net amount of non-recurring gains and losses during the period was 36,949,890.83 yuan. Among this, government subsidies included in profit or loss for the current period amounted to as much as 40,908,427.57 yuan. Non-recurring gains and losses accounted for over 36% of the contribution to net profit, highlighting the non-recurring nature of the company’s profitability.

Earnings Per Share Decline

Due to the capital increase through stock transfer, the company’s basic earnings per share in 2025 was 0.63 yuan, down 14.86% from 0.74 yuan in 2024. Non-GAAP earnings per share was 0.40 yuan, also lower than the prior year’s level; the performance of earnings per share lagged behind the growth rate of net profit.

In-Depth Analysis of Expense Structure

Overall Expense Situation

In 2025, total period expenses of the company amounted to 86,461,240.46 yuan, up 13.00% from 76,514,225.90 yuan in 2024. The growth rate of expenses was higher than the growth rate of operating revenue, which eroded profitability to some extent.

Slight Increase in Selling Expenses

Selling expenses increased only slightly by 1.09%. Among them, labor costs rose from 9,421,653.34 yuan to 10,359,711.98 yuan, which was the main driver of the increase in expenses. Meanwhile, business entertainment and marketing promotion expenses decreased from 3,439,671.95 yuan to 3,280,363.56 yuan, indicating that the company reduced its spending on market expansion.

Administrative Expenses Surge Significantly

Administrative expenses surged 41.19% year over year. The core driving factor was that labor costs jumped from 8,185,021.72 yuan to 13,177,731.63 yuan, an increase of over 60%, reflecting an expansion of the company’s management team and/or higher compensation. At the same time, office expenses and fees for intermediary institutions also increased to varying degrees.

R&D Expenses Continue to Increase

R&D expenses grew 24.75% year over year, with the investment scale further expanding to 50,106,768.46 yuan. As a proportion of operating revenue, it rose from 13.93% to 15.60%. Specifically, technology service fees increased from 16,627,567.34 yuan to 20,663,075.54 yuan, a rise of 24.27%. The company’s investment in external technology cooperation continued to increase.

Financial Expenses Turn from Positive to Negative

Financial expenses moved from net expenditures of 496,901.41 yuan in the prior year to net income of 304,155.92 yuan, dropping sharply by 161.21% year over year. This was mainly because interest income increased significantly from 547,113.54 yuan to 1,573,916.41 yuan, far exceeding the scale of interest expense.

Interpretation of R&D Personnel

In 2025, the company’s R&D personnel expanded significantly, increasing from 45 at the beginning of the period to 80 at the end of the period. The proportion of R&D personnel in total employees rose from 19.31% to 26.14%. Among them, PhD holders increased from 2 to 6, master’s degree holders increased from 20 to 24, and bachelor’s degree holders increased from 22 to 48. Both the educational structure and headcount scale of the R&D team were notably optimized, laying a talent foundation for the company’s technological innovation.

Cash Flow Analysis

Overall Cash Flow Situation

In 2025, the company’s net decrease in cash and cash equivalents was 53,136,719.70 yuan, while in 2024 it was a net increase of 172,931,371.57 yuan, indicating a significant reversal in cash flow conditions.

Slight Improvement in Net Cash Flow from Operating Activities

Net cash flow generated from operating activities was 12,250,878.56 yuan, up 5.17% year over year. Of this, cash received from the sale of goods and the provision of services increased dramatically from 186,619,557.22 yuan to 350,452,084.09 yuan, showing improved collection from sales. However, cash paid for purchasing goods and receiving services also rose from 81,583,381.11 yuan to 228,544,486.58 yuan; the scale of net cash inflow from operating activities remains relatively small.

Major Net Cash Outflow from Investing Activities

Net cash flow from investing activities was -75,976,983.29 yuan. The scale of net outflow widened 3.62 times year over year. This was mainly because the company increased its investment efforts. In the current period, cash paid for investments was 20,750,000.00 yuan, and cash paid for the purchase and construction of fixed assets, intangible assets, and other long-term assets was 64,531,364.87 yuan. The company’s spending on industrial layout and capacity building increased significantly.

Sharp Drop in Cash Flow from Financing Activities

Net cash flow from financing activities was 10,589,385.03 yuan, down 94.04% year over year. This was mainly because in 2024 the company completed a public offering of shares to raise a large amount of funds, while in 2025 financing was only conducted through means such as short-term borrowings, leading to a substantial contraction in financing scale.

Key Risk Disclosures

Risk of Technological Iteration

The company operates in the aerospace measurement and control and digital simulation sector, where technology updates are fast. If it cannot continuously keep up with technological iteration, it may lose its technological advantages and market opportunities.

Policy Dependence Risk

The company’s business is highly affected by national aerospace industry policies. If the strength of industry support policies weakens, it will adversely affect operating performance.

Risk of Small Scale

Compared with international peers, the company’s current scale still has a gap. Its ability to withstand risks needs to be enhanced. Changes in external and internal environments may affect stable operations.

Risk of Talent Loss

Core technical and management personnel are the company’s core competitiveness. If talent incentives are not in place and talent leaves, it will affect business development.

Risk of Changes in Tax Preferential Policies

The company currently enjoys a preferential corporate income tax rate of 10% for key software enterprises. If tax policies change in the future, it will directly affect profitability levels.

Risk of Seasonal Fluctuations in Revenue

The company’s revenue is concentrated in the fourth quarter. Revenue in the first three quarters has a low share, creating a clear risk of seasonal fluctuations in performance.

Compensation of Directors, Supervisors, and Senior Executives

In 2025, the chairman, Hu Yu, reported total pre-tax compensation received from the company during the reporting period of 85.23 hundred thousand yuan. The general manager, Niu Wei, reported total pre-tax compensation of 51.90 hundred thousand yuan. The deputy general managers, Zhang Zihang, Li Ning, and Li Pan, reported total pre-tax compensation of 62.47 hundred thousand yuan, 37.48 hundred thousand yuan, and 55.29 hundred thousand yuan, respectively. The financial director is concurrently served by Zhang Zihang, whose total pre-tax compensation has already been included in the aforementioned 62.47 hundred thousand yuan. Overall, the company’s compensation for its core executives is linked to the company’s performance growth, and the compensation level aligns with industry characteristics.

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