Jiyou Co., Ltd. 2025 Annual Report Analysis: Revenue down 62.64% Year-over-Year, Non-Recurring Net Profit Turns Losses and Declines by Over 149%

Core Financial Indicator Interpretation

Operating Revenue: Dramatic Decline, Core Business Under Pressure

In 2025, the company achieved operating revenue of 171,118,461.49 yuan, a significant decrease of 62.64% compared to 457,976,137.09 yuan in 2024. From a business split perspective, the packaging and printing sector, as the core business, had an annual revenue of 164,327,549.20 yuan, down 63.57% year-on-year, with a gross profit margin of only 4.55%, a reduction of 29.63 percentage points from the previous year, severely shrinking the profitability of the main business.

By product, cigarette labels generated revenue of 74,520,246.51 yuan, down 60.55% year-on-year, with a gross profit margin of -2.96%, falling into a situation of increasing revenue but not profit; social packaging and printing products generated revenue of 36,879,377.25 yuan, down 63.43% year-on-year; only products like aluminum foil and composite paper saw significant revenue growth, but due to the low base, their contribution to overall revenue was limited.

Net Profit: Loss Narrowed, but Deducted Net Profit Turned Negative

In 2025, the net profit attributable to shareholders of the listed company was -18,204,781.97 yuan, a narrower loss compared to -72,458,096.46 yuan in 2024, but the deducted net profit was -23,602,663.22 yuan, a significant turnaround from a profit of 47,382,635.73 yuan in 2024, with a decline of 149.81%, indicating a fundamental decline in the company’s main business profitability and concerning profit quality.

Earnings Per Share: From Profit to Loss, Shareholder Returns Shrink

Basic earnings per share were -0.04 yuan/share, and deducted earnings per share were -0.05 yuan/share, turning from profit to loss compared to 0.09 yuan/share in 2024, reflecting a significant shrinkage in shareholder returns per share and deterioration in the company’s profitability.

Expense Control: Significant Cost Reduction Effects, But R&D Investment Cut

Overall Decrease in Period Expenses, Control Effects Evident

In 2025, the company’s selling expenses, management expenses, and R&D expenses all saw varying degrees of decline, indicating the company took proactive measures in cost reduction and efficiency enhancement.

• Selling Expenses: Totaled 2,247,761.20 yuan for the year, down 58.22% year-on-year, mainly due to reduced employee compensation and changes in the scope of consolidation.
• Management Expenses: Totaled 24,765,576.88 yuan for the year, down 51.39% year-on-year, similarly affected by employee compensation and consolidation scope.
• R&D Expenses: Totaled 13,645,492.28 yuan for the year, down 42.72% year-on-year, with reduced R&D investment potentially impacting the company’s long-term competitiveness.
• Financial Expenses: Totaled -9,034,888.56 yuan for the year, mainly due to interest income, indicating the company has a relatively ample capital reserve.

R&D Personnel and Investment: Scale Reduced, Innovation Drive to be Observed

Regarding the number of R&D personnel, the company did not disclose specific changes, but the significant decrease in R&D expenses indicates weakened investment efforts. Employee compensation and external R&D fees within R&D expenses have also seen a clear decline. If R&D investment continues to shrink, it may affect the company’s technological leadership and new product development capabilities in the packaging and printing industry.

Cash Flow: Operating Cash Flow Continues to Net Outflow, Reliance on Financing to Recover

Operating Cash Flow: Net Outflow Expands, Main Business Lacks Blood Generation Ability

The net cash flow from operating activities in 2025 was -86,041,645.78 yuan, further expanding from -58,568,310.50 yuan in 2024, mainly due to a decrease in cash received from sales of goods and provision of services, reflecting a decline in the company’s main business receivables ability and a continued inadequacy in operational blood generation ability.

Investment Cash Flow: Net Amount Declined Year-on-Year, Disposal Income Reduced

The net cash flow from investment activities was 48,678,192.14 yuan, a decline of 41.70% compared to 83,499,993.96 yuan in 2024, mainly due to significant cash inflows from disposing of subsidiaries in the previous year, while there were no such disposal incomes in the current period, weakening the investment side’s support for the company’s cash flow.

Financing Cash Flow: Turned Positive from Negative, Relies on Reducing Holdings to Buy Back Shares

The net cash flow from financing activities was 52,031,754.65 yuan, turning positive from -226,227,536.25 yuan in 2024, mainly due to cash received from reducing holdings and buying back shares. At the same time, there were no significant cash outflows for distributing dividends or buying back shares in the previous year, allowing the company to bridge the cash gap between operating and investment activities through financing activities.

Risk Warning: Multiple Risks Intertwined, Delisting Alarm Sounds

Main Business Operating Risks

2. Customer Concentration Risk: The company has a high customer concentration, and any decline in demand from major customers or changes in cooperative relationships will directly affect the company’s revenue scale.
3. Raw Material Price Fluctuation Risk: Fluctuations in the prices of major raw materials such as paper products and inks will directly impact the company’s cost control, squeezing profit margins.
4. Market Competition Intensification Risk: The packaging and printing industry is highly competitive, and price wars may further compress the company’s gross profit margin.

Transformation and Delisting Risks

2. Energy Storage Project Progress Below Expectations: The company is transforming and laying out energy storage and other energy material projects, but lacks cross-industry operating experience, with uncertainties in technology development and team configuration, potentially causing project implementation progress to fall short of expectations.
3. Delisting Risk Warning: In 2025, the company’s deducted net profit was negative, and revenue fell below 300 million yuan, triggering the delisting risk warning clause under the “Stock Listing Rules,” and the stock will be subject to *ST, facing delisting pressure.

Executive Compensation: Core Executives’ Compensation Stable

During the reporting period, Chairman Xu Shanshui’s pre-tax total compensation was 612,000 yuan, with the General Manager (also served by Chairman Xu Shanshui) receiving 612,000 yuan, and Vice Presidents Liu Lizheng, Yang Jiangtao, and Jiang Hua receiving pre-tax compensations of 376,600 yuan, 360,000 yuan, and 360,000 yuan respectively, while CFO Wu Zhengxing received 360,000 yuan pre-tax, indicating stable core executive compensation, contrasting with the company’s performance losses, and the linkage mechanism between compensation and performance needs optimization.

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Editor: Xiao Lang Quick Report