Xinhan New Materials (301076) 2025 Annual Report Brief Analysis: Revenue and Net Profit Both Increase Year-over-Year, Profitability Improves

According to publicly available data compiled by Securities Star, New Han New Materials (301076) recently released its 2025 annual report. As of the end of this reporting period, the company’s total operating revenue was 444 million yuan, up 5.8% year-over-year, and net profit attributable to shareholders was 66.61 million yuan, up 19.02% year-over-year. Looking at quarterly data, the fourth quarter’s total operating revenue was 114 million yuan, a slight decrease of 0.07% year-over-year, and net profit attributable to shareholders was 15.09 million yuan, an increase of 6.35% year-over-year. During this period, New Han New Materials’ profitability improved, with gross profit margin increasing by 13.43% and net profit margin increasing by 12.49% compared to the previous year.

This data fell below most analysts’ expectations, as analysts generally forecasted a net profit of around 77.5 million yuan for 2025.

The financial report’s key indicators performed well. The gross profit margin was 26.65%, up 13.43% year-over-year; the net profit margin was 15.01%, up 12.49%. Total selling, administrative, and financial expenses amounted to 37.02 million yuan, accounting for 8.34% of revenue, an increase of 29.63%. Net asset value per share was 6.79 yuan, a decrease of 20.44% year-over-year; operating cash flow per share was 0.44 yuan, down 57.97%; earnings per share (EPS) was 0.38 yuan, up 18.75%.

The reasons for significant changes in certain financial items are explained as follows:

1. Revenue change of 5.8% due to increased product sales this year.
2. Gross profit change of 20.01% due to expanded production and sales scale, further reduction in unit production costs, and improved gross margin.
3. Investment income change of 57.93% due to increased returns from idle funds temporarily invested.
4. Net profit change of 19.02% driven by expanded sales scale and increased gross profit.
5. Sales expenses decreased by 27.96%, mainly because of lower overseas market product certification service fees compared to the same period last year.
6. Management expenses increased by 8.77%, mainly due to higher environmental protection costs, office expenses, and share-based payment costs.
7. Financial expenses increased by 80.48%, mainly due to reduced interest income from deposits and exchange losses.
8. R&D expenses increased by 17.86%, driven by increased investment in industry-university-research collaborations and higher R&D personnel salaries.
9. Net cash flow from operating activities decreased by 45.36%, mainly because last year’s cash received from sales and tax refunds was higher.
10. Net cash flow from investing activities increased by 76.52%, due to more funds recovered from idle investments.
11. Net cash flow from financing activities decreased by 53.33%, mainly because of increased frequency and total amount of cash dividends paid.
12. Accounts receivable increased by 11.88%, as the revenue realized in Q4 has not yet been settled.
13. Fixed assets decreased by 8.31% due to depreciation.
14. Construction in progress increased by 222.23%, mainly because of additional RTO equipment and installation projects in three workshops.
15. Contract liabilities increased by 84.23%, mainly due to increased advance payments received.
16. Trading financial assets increased by 7.41%, as idle funds were used to purchase structured deposits.
17. Accounts receivable financing increased by 37.55%, mainly due to more bills received during the period.
18. Long-term deferred expenses increased by 52.33%, mainly due to new employee dormitory renovation costs.
19. Deferred tax assets decreased by 100%, mainly due to increased share-based payment tax differences.
20. Notes payable decreased by 36.75%, as the company received more bills receivable and reduced issuing payable notes.
21. Changes in deferred income mainly due to new government grants related to assets.
22. Deferred tax liabilities decreased by 46.64%, mainly because increased depreciation of fixed assets led to a one-time reduction in deductible expenses.

Securities Star’s valuation analysis tools show:

• Business Evaluation: The company’s ROIC last year was 5.49%, indicating an average capital return rate. The net profit margin was 15.01%, and after accounting for all costs, the company’s products or services have high added value. Historically, since listing, the median ROIC has been 19.59%, indicating good investment returns. The worst year was 2024, with an ROIC of 4.22%, reflecting average investment returns. The company’s historical financials are relatively solid (Note: The company has been listed for less than 10 years; the longer the listing, the more meaningful the financial averages).
• Solvency: The company’s cash assets are very healthy.
• Business Breakdown: Over the past three years (2023/2024/2025), net return on operating assets was 20%, 13.1%, and 15.6%, respectively. Net operating profits were 93.34 million, 55.97 million, and 66.61 million yuan, with net operating assets of 467 million, 428 million, and 428 million yuan.

The company’s working capital/revenue ratio over the past three years (2023/2024/2025) was 0.18/0.1/0.1, with working capital of 76.39 million, 41.43 million, and 43.35 million yuan, and revenue of 435 million, 419 million, and 444 million yuan.

Financial health check tools suggest paying attention to the company’s accounts receivable status (accounts receivable/profit ratio reaching 103.16%).

Analyst tools indicate that securities analysts generally expect performance in 2026 to reach 85 million yuan, with an average EPS of 0.49 yuan.

The above information is compiled by Securities Star from public sources and generated by AI algorithms (Network Credit Calculation Record 310104345710301240019). It does not constitute investment advice.