Yuloka 2025 Annual Report Analysis: Net profit attributable to parent company increases by 92.73%, operating cash flow drops by 98.53%

Operating Revenue: Slight Decline in Main Business, Military Industry Business Grows Against the Trend

In 2025, the company achieved operating revenue of 579,159,957.65 yuan, a decrease of 3.31% year-on-year, with the overall scale remaining relatively stable. Looking at business segments:

• Smart Mining Business: Achieved revenue of 499,645,474.71 yuan, down 7.59% year-on-year, with a gross profit margin of 46.05%, a slight decrease of 0.85 percentage points from last year, mainly due to shrinking demand in upstream mining and intensified price competition.
• Defense Military Industry Business: Achieved revenue of 74,753,039.58 yuan, up 29.70% year-on-year, with a stable gross profit margin of 43.85%, becoming an important support for performance.
• Other Businesses: Achieved revenue of 4,761,443.36 yuan, a significant increase of 622.22% year-on-year, but accounting for only 0.82%, with limited impact on overall revenue.

Regionally, Shanxi Province generated 223,330,020.06 yuan, accounting for 38.56%, a 7.64% increase year-on-year, remaining the core market; Guizhou Province’s revenue surged by 291.31% year-on-year; Jilin Province’s revenue grew by 46.08%, indicating initial success in new market development; meanwhile, Beijing and Gansu Province saw declines of over 80%, showing clear regional market segmentation.

Profitability Indicators: Non-Operating Gains and Losses Boost Net Profit, Main Business Profitability Under Pressure

Net Profit Attributable to Shareholders: Surged by 92.73% Year-on-Year

In 2025, net profit attributable to shareholders of the listed company was 183,241,619.53 yuan, up 92.73% year-on-year, mainly due to investment gains from the disposal of equity in Fuhua Yuki and Nanjing Lingrui, among other non-recurring gains and losses.

Net Profit Excluding Non-Recurring Items: Down 23.42% Year-on-Year, Main Business Profitability Declines

Net profit attributable to shareholders after deducting non-recurring gains and losses was 74,634,868.87 yuan, down 23.42% year-on-year, reflecting the objective pressure on the main smart mining business caused by shrinking upstream demand and intensified price competition, leading to a decline in core profitability.

Earnings Per Share: Growth in Line with Net Profit, Non-Recurring Items Under Pressure

• Basic Earnings Per Share: 0.2485 yuan/share in 2025, up 92.64%, consistent with the growth in net profit attributable to shareholders.
• Non-Recurring Earnings Per Share: 0.1012 yuan/share in 2025, down 23.42%, indicating a reduced contribution of main business profitability to per-share earnings.

Expenses: Slight Decrease Overall, Management Control Shows Effect

In 2025, the company’s total operating expenses were 163,217,738.21 yuan, down 4.38% year-on-year, indicating effective expense control.

Selling Expenses: Down 3.83% Year-on-Year, Scale Remains Stable

Selling expenses amounted to 64,068,732.69 yuan, a decrease of 3.83%. Among them, installation, maintenance, and promotion service costs were 27,775,709.89 yuan, down 12.79%; staff salaries were 22,120,082.35 yuan, up 20.87%, mainly due to personnel salary adjustments and increased market expansion staff.

Management Expenses: Down 5.51% Year-on-Year, Efficiency Improved

Management expenses totaled 51,045,957.00 yuan, a decrease of 5.51%. Major costs such as salaries and depreciation decreased; business entertainment expenses were 3,949,474.19 yuan, up 24.40%, mainly due to increased market development and customer maintenance needs.

Financial Expenses: Up 53.14% Year-on-Year, Interest Income Decreased

Financial expenses showed a loss of -1,762,769.85 yuan, an increase of 53.14% (loss narrowed), mainly because the company’s bank deposits decreased during the reporting period, leading to reduced interest income, which fell from 5,388,848.77 yuan to 3,091,967.35 yuan.

R&D Expenses: Down 8.45% Year-on-Year, Still Maintaining High Investment

R&D expenses were 49,865,818.37 yuan, down 8.45%, but still at a high level, accounting for 8.61% of operating revenue. R&D projects include mine hazardous gas monitoring systems, intelligent mining card rail transport robots, among others, building technological strength for future development.

R&D Personnel: Slight Reduction, Structural Optimization

In 2025, the company had 132 R&D personnel, a decrease of 25.42% year-on-year, with the proportion dropping from 22.84% to 20.47%. In terms of educational background, the number of R&D staff with college degrees or below increased from 15 to 27 (an 80.00% increase), while the number of highly educated R&D personnel decreased from 126 to 71 (a 43.65% decline). Age-wise, R&D staff under 30 decreased from 70 to 28 (a 60.00% reduction), while those over 40 increased from 24 to 44 (an 83.33% increase). This restructuring likely reflects the company’s optimization based on project needs, retaining experienced senior R&D personnel.

Cash Flow: Operating Cash Flow Plummets, Investment Cash Flow Turns Positive, Large Outflow in Financing Cash Flow

Operating Activities Cash Flow: Down 98.53% Year-on-Year, Payment Pressure Intensifies

Net cash flow from operating activities was 2,815,117.57 yuan, down 98.53%, mainly due to a decrease in cash received from sales of goods and services, from 546,649,798.27 yuan to 358,526,340.37 yuan, a 34.41% decline, reflecting significant payment collection pressure and a sharp decline in operating cash flow quality.

Investing Activities Cash Flow: Up 141.18% Year-on-Year, Equity Disposal Contributes Significantly

Net cash flow from investing activities was 40,994,117.50 yuan, up 141.18%, mainly due to the disposal of equity in Beijing Fuhua Yuki and Nanjing Lingrui, increasing cash inflows from investment activities. Total cash inflow from investing activities rose from 769,246,515.78 yuan to 1,315,411,474.36 yuan, a 71.00% increase; total cash outflow increased from 868,805,807.87 yuan to 1,274,417,356.86 yuan, a 46.69% increase.

Financing Activities Cash Flow: Down 491.23% Year-on-Year, Increased Dividends and Debt Repayments

Net cash flow from financing activities was -154,981,554.00 yuan, a decrease of 491.23%, mainly due to increased dividend payouts to shareholders and higher debt repayment expenses during the reporting period. Total cash outflow from financing activities increased from 46,783,195.09 yuan to 186,803,568.72 yuan, a 299.30% rise.

Potential Risks

Risks of Unmet Expectations in Fundraising Projects and New Aerospace Power Fields

The company’s fundraising projects require a certain construction cycle. If industry policies shift, market demand changes, or competition worsens during this period, project implementation may be affected. Additionally, entering the high-end aerospace power manufacturing field in early 2026 involves high technical thresholds, strict industry standards, and long market validation cycles, facing risks such as technical adaptation, qualification certification, market development not meeting expectations, and insufficient strategic synergy with target companies.

Risks of Intensified Market Competition

Industry competition has evolved from solely product performance or price battles to multi-dimensional, systematic competition involving technological iteration, ecosystem building, and capital integration. Besides traditional competitors, tech giants and cross-industry enterprises are accelerating market entry, squeezing overall profit margins and raising barriers. If the company cannot maintain technological barriers, create differentiated application scenarios, and establish its value position in ecological cooperation, it risks weakened growth momentum or marginalization.

Risks of Shortage of Professional Talent

The company’s layout in smart mining involves developing cutting-edge applications requiring high technical expertise; entering the aerospace power field also demands specialized talent. Failure to retain stable talent teams and attract top technical personnel could hinder strategic goals and sustainable development.

Risks of Poor New Product R&D

The company is increasing new product varieties, which are high in technology content, difficult to develop, and require long investment cycles. R&D outcomes are uncertain; adverse market changes during development could limit profitability. Challenges such as talent shortages and marketing channel issues after product launch may also arise, making the achievement of expected results uncertain.

Remuneration of Directors, Supervisors, and Senior Executives: Core Executives’ Compensation Remains Stable

• Chairman Huang Ziwei: Total pre-tax remuneration received during the reporting period was 636.2k yuan.
• General Manager Huang Ziwei: Same person as Chairman, with the same pre-tax remuneration.
• Vice General Manager Zhao Zhigang: Pre-tax remuneration of 479.2k yuan; Vice General Manager Cao Hongwei received 364.8k yuan.
• Chief Financial Officer Cui Baohang: Pre-tax remuneration of 444.7k yuan.

Overall, core executive compensation remains stable, aligning with company performance and industry salary levels.

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