Haopeng Technology 2025 Annual Report Analysis: Net profit excluding non-recurring gains and losses increased by 158.95%, net operating cash flow increased by 61.44%

Operating Revenue: Up 14.84% Year over Year; Full-Year Performance Unfolds Quarter by Quarter

During the reporting period, the company achieved operating revenue of CNY 5.867 billion, up 14.84% year over year from CNY 5.108 billion in 2024 (CNY 4.541 billion in 2023), maintaining a growth trend for three consecutive years. By quarter, revenue followed a pattern of “lower in the first half, higher in the second half”: revenue was CNY 1.225 billion in Q1, increased to CNY 1.538 billion in Q2, reached the full-year peak of CNY 1.629 billion in Q3, and then declined to CNY 1.475 billion in Q4. Overall, this reflects the steady release of order demand in the company’s consumer electronics and AI edge-side energy solutions.

Net Profit: Doubling Growth; Profitability Quality Significantly Improved

In 2025, the net profit attributable to shareholders of listed companies was CNY 203 million, up significantly by 122.54% year over year from CNY 91.3 million in 2024, representing a breakthrough in profitability capability. Net profit after excluding non-recurring gains and losses was CNY 193 million, with an even higher year-over-year growth rate of 158.95%, far exceeding the growth rate of net profit. This indicates that the core business’s profitability contribution has continued to strengthen, the impact of non-recurring gains and losses on profit has further decreased, and overall profitability quality has improved significantly.

Earnings per Share: Doubles Alongside Profit Growth

The sharp increase in earnings scale directly drove higher earnings per share. In 2025, basic earnings per share were CNY 2.47 per share, up 112.93% year over year from CNY 1.16 per share in 2024. Diluted earnings per share after excluding non-recurring items were CNY 2.34 per share (calculated as net profit after excluding non-recurring items divided by total share capital), up 151.61% year over year from CNY 0.93 per share in 2024. This matches the high growth rate of net profit after excluding non-recurring items, reflecting that the company’s earnings growth has significantly bolstered shareholder returns.

Cost Control: Increased R&D Spending; Overall Structure Optimized

From the expense side, the company’s total period expenses in 2025 expanded in step with revenue growth. Structurally, however, the emphasis was more on R&D investment, reflecting a “technology-driven” strategic orientation.

• Selling Expenses: In the reporting period, selling expenses were CNY 321 million, up 11.85% year over year from CNY 287 million in 2024. The growth rate was lower than the revenue growth rate. This mainly resulted from the company’s focus on a strategy targeting top-tier customers, leading to more precise deployment of sales resources. At the same time, under the effect of scale, unit selling costs were diluted to some extent.
• Administrative Expenses: Administrative expenses were CNY 276 million, up 12.65% year over year from CNY 245 million in 2024. The increase mainly came from higher demand for management services driven by the expansion of the company’s business scale, as well as investments in building a digital management system.
• Finance Expenses: Finance expenses were -CNY 32.05 million, further expanding from -CNY 18.02 million in 2024. This was mainly because the company’s cash flow was ample, interest income increased, and foreign exchange rate fluctuations led to foreign exchange gains; overall finance costs were negative, reflecting the company’s strong capital management capability.
• R&D Expenses: R&D expenses were CNY 412 million, up 22.99% year over year from CNY 335 million in 2024. The growth rate was significantly higher than the revenue growth rate. The company continued to increase investment in frontier areas such as solid-state batteries and AI edge-side energy solution. Full-year R&D investment as a percentage of operating revenue was 7.02%, up further from 6.56% in 2024.

R&D Personnel: High-Education Team Supports Technological Breakthroughs

As of the end of 2025, the company’s total number of R&D personnel reached 892, accounting for 16.87% of the total employee count. This increased by 13.63% from 785 at the end of 2024, showing continued expansion of the team size. The proportion of R&D personnel with master’s degree or above was 22.53%, up by 3.12 percentage points from the prior year, further optimizing the education structure of the R&D team. The company’s R&D team is led by experts in electrochemistry and artificial intelligence, as well as academicians, covering technology directions across multiple disciplines. The company also carries out joint research with universities such as The University of Hong Kong and Central South University, providing talent support for breakthroughs in frontier technologies including solid-state batteries and AI edge-side energy.

Cash Flow: Operating Cash Flow Improves Significantly; “Blood-Generating” Capability Strengthens

In 2025, the company’s cash flow performance was impressive. Cash flows from operating activities, investing activities, and financing activities followed a pattern of “one increase, one decrease, one decline”:

• Cash Flow from Operating Activities: Net cash inflow was CNY 757 million, up 61.44% year over year from CNY 469 million in 2024. This was mainly due to the increase in revenue driving higher collections. In addition, with improved supply chain management, the payment schedule was more reasonable. The ratio of operating cash flow to net profit was 3.73, down from 5.14 in 2024 but still at a high level. The cash conversion rate of earnings remained good.
• Cash Flow from Investing Activities: Net cash inflow was -CNY 623 million, compared with -CNY 315 million in 2024, decreasing by 97.78% year over year. This was mainly because the company increased capital expenditures for solid-state battery mass-production lines and AI intelligent manufacturing equipment, as well as investment plans in equity-participating enterprises across the upstream and downstream of the industrial chain.
• Cash Flow from Financing Activities: Net cash inflow was -CNY 215 million, compared with a positive CNY 87.02 million in 2024, representing a significant year-over-year decline of 347.13%. This was mainly due to increased expenditures such as dividends and debt repayments during the year. Meanwhile, since cash flow was ample, external financing decreased, reflecting that the company’s strengthened self-driven “blood-generating” ability reduced its reliance on external financing.

Risk Warning: Three Areas Need Ongoing Attention

In its annual report, the company highlighted multiple operational risks and urged key focus on:

1. Technology Iteration Risk: In areas such as AI edge-side energy and solid-state batteries, technologies evolve rapidly. If the company’s R&D progress falls behind expectations or cannot timely match customer needs, its technological advantages may be lost, affecting market share.
2. Market Competition Risk: Concentration among leading enterprises in consumer electronics and energy storage is increasing. At the same time, new entrants continue to emerge. If the company cannot continuously enhance product competitiveness, it may face risks such as order loss and a decline in gross margin.
3. Supply Chain Volatility Risk: Upstream raw material prices fluctuate significantly due to global supply and demand, policy factors, and more. If the company cannot effectively respond through measures such as price transmission and hedging, profitability levels may be impacted.

Compensation for Directors, Supervisors, and Senior Executives: Core Management Remuneration Linked to Performance

During the reporting period, the company’s core management’s pre-tax remuneration was positively linked to the company’s profit growth:

• Chairman Pan Dangyu: Total pre-tax remuneration received from the company in the reporting period was CNY 1.2856 million, up 30.88% year over year from CNY 0.9823 million in 2024. This matched the growth rate of the company’s net profit, reflecting a compensation-performance binding mechanism.
• General Manager Li Wenliang: Total pre-tax remuneration was CNY 1.1689 million, up 30.52% year over year from CNY 0.8956 million in 2024, consistent with the company’s overall performance growth pace.
• Deputy General Managers: Multiple deputy general managers’ total pre-tax remuneration fell in the range of CNY 0.75–0.95 million, averaging an increase of about 25% compared with 2024, aligning with the expansion of the company’s operating scale and performance improvement.
• CFO Qin Runqiong: Total pre-tax remuneration was CNY 0.8245 million, up 26.61% year over year from CNY 0.6512 million in 2024, reflecting recognition of the finance team’s contributions to areas such as cash flow management and capital operations.

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