Tianwo Technology 2025 Annual Report Analysis: Non-recurring Net Profit Surges by 355.90%, Financial Expenses Drop by 39.12%

Operating Revenue: Slight Growth, Business Structure Optimization

In 2025, the company achieved operating revenue of 2.545 billion yuan, up 3.31% year-on-year from the previous year, maintaining an overall steady growth trend. Looking at business segments:

• High-end equipment manufacturing business revenue was 1.845 billion yuan, accounting for 72.49% of total revenue. Although it fell 6.42% year-on-year, it can still be regarded as the company’s core revenue pillar; fluctuations in domestic market demand are the main influencing factors.
• Defense construction business revenue was 502 million yuan, up 18.96% year-on-year. Its share increased to 19.71%, becoming an important driver of revenue growth. Civil ship delivery volume hit a new high, and notable results have been achieved in expanding into new fields.
• Power design and system solutions business revenue was 44.3195 million yuan, surging 145.27% year-on-year. Its share increased from 0.73% to 1.74%, showing initial effectiveness in business layout.
• Other business revenue was 154 million yuan, up 194.11% year-on-year, further enriching the company’s revenue sources.

From the product end, revenue from pressure vessel equipment was 1.82 billion yuan. Although it declined 6.53% year-on-year, it still accounted for 71.52% of total revenue. Ship revenue was 148 million yuan, up 132.57% year-on-year. Revenue from power engineering survey, design, and operation services was 44.3195 million yuan, up 145.27% year-on-year, indicating a clear trend toward diversification in product structure.

Regionally, overseas sales revenue was 268 million yuan, up 153.86% year-on-year, accounting for 10.53% of total revenue. Breakthrough progress has been made in expanding international markets, especially Zhanghua Machinery’s model upgrade from “chartering ships overseas” to “building ships overseas.”

Profitability Indicators: Significant Improvement in Non-Recurring Net Profit, Enhanced Profit Quality

Net Profit: Up 95.41% Year-on-Year

In 2025, the net profit attributable to shareholders of the listed company was 46.97 million yuan, up 95.41% year-on-year from 24.0387 million yuan in the prior year, achieving a marked increase in the scale of profitability.

Non-Recurring Net Profit: Up 355.90% Year-on-Year

After deducting non-recurring gains and losses, the net profit attributable to shareholders of the listed company was 59.3869 million yuan, up sharply 355.90% year-on-year from -23.2072 million yuan in the prior year. It turned from loss to profit, and the profit quality was fundamentally improved.

Earnings Per Share: Growth on a Synchronized Basis

Basic earnings per share were 0.05 yuan per share, up 66.67% year-on-year from 0.03 yuan per share in the prior year. Non-recurring earnings per share were 0.07 yuan per share, compared with -0.03 yuan per share in the same period of the prior year, achieving a turnaround from loss to profit; earnings per share capability improved significantly.

Expense Analysis: Financial Expenses Dropped Sharply, Expense Structure Optimized

Total Expenses: Down 5.64% Year-on-Year

In 2025, total period expenses amounted to 33,692.18 million yuan, down 5.64% year-on-year from 35,895.51 million yuan in the prior year. Cost-control effectiveness was evident.

Selling Expenses: Down 14.00% Year-on-Year

Selling expenses were 3,411.70 million yuan, down 14.00% year-on-year from 3,966.97 million yuan in the prior year. Of this, staff compensation decreased from 2,059.55 million yuan to 1,553.73 million yuan, and sales commissions decreased from 743.21 million yuan to 390.05 million yuan. This was mainly due to the company optimizing its sales strategy and adjusting the sales team structure.

Administrative Expenses: Up 10.47% Year-on-Year

Administrative expenses were 12,490.23 million yuan, up 10.47% year-on-year from 11,306.81 million yuan in the prior year. This was mainly because electricity and water utility costs increased significantly from 1.2519 million yuan to 5.8066 million yuan, and consulting and service fees, as well as travel expenses, increased slightly; overall, the company remained within a reasonable range of control.

Financial Expenses: Down 39.12% Year-on-Year

Financial expenses were 8,975.98 million yuan, down 39.12% year-on-year from 14,744.70 million yuan in the prior year. This was mainly attributable to the reduction in principal of the company’s interest-bearing liabilities and the decrease in financing costs. Interest expense decreased from 15,371.76 million yuan to 9,518.28 million yuan, and interest income increased from 344.05 million yuan to 457.04 million yuan.

R&D Expenses: Basically Flat

R&D expenses were 8,814.27 million yuan, slightly down 0.71% year-on-year from 8,877.03 million yuan in the prior year, maintaining a stable intensity of R&D investment and providing sustained support for the company’s technological innovation and product upgrades.

R&D Personnel Profile: Team Size Slightly Up, Structure Optimized

In 2025, the company had 214 R&D personnel, up 3.38% year-on-year from 207 in the prior year. The proportion of R&D personnel increased from 11.85% to 12.08%. In terms of educational structure, the number of R&D personnel with bachelor’s degree or above increased from 142 to 154, with their proportion rising from 68.60% to 71.96%. In particular, the number of master’s degree holders increased from 10 to 12, up 20%, and the overall educational level of the R&D team improved. In terms of age composition, the number of R&D personnel under 30 increased from 45 to 58, up 28.88%, injecting fresh blood into the R&D team and enhancing innovation vitality.

Cash Flow Analysis: Operating Cash Flow Declines, Investment and Financing Cash Flows Show Significant Volatility

Net Cash Flow from Operating Activities: Down 26.50% Year-on-Year

In 2025, the net cash flow generated from operating activities was 16,854.11 million yuan, down 26.50% year-on-year from 22,929.96 million yuan in the prior year. The main reason is that during the reporting period, the purchase amount of inventories increased compared with the same period of the prior year. The increase in operating cash outflows (6.62%) was higher than the increase in cash inflows (3.91%). However, the company increased the efforts to collect receivables, so net operating cash inflow remained at a relatively high level.

Net Cash Flow from Investing Activities: Down 100.60% Year-on-Year

The net cash flow generated from investing activities was -833.74 million yuan, down sharply 100.60% year-on-year from 138,927.59 million yuan in the prior year. This was mainly because in the same period of the prior year, due to the planned change of the Yumen project, the company settled and cleared the portions of assets in the original project that were not usable, resulting in a large amount of net cash inflow from investing activities, which formed a high base; therefore, a significant year-on-year decline occurred in the current period.

Net Cash Flow from Financing Activities: Up 77.88% Year-on-Year

The net cash flow generated from financing activities was -26,193.75 million yuan, up 77.88% year-on-year from -118,417.00 million yuan in the prior year. This was mainly because in the same period of the prior year, the company repaid part of its financial borrowings, resulting in a larger scale of cash outflows from financing activities, forming a low base; in the current period, both the scale of cash inflows and cash outflows from financing activities decreased year-on-year, and accordingly, the net outflow narrowed.

Risks Faced: Multiple Risks Coexist—Need to Be Alert to Potential Impacts

Investor Litigation and Claims Risk

As of the date of disclosure in the report, the company has received 108 investor litigation notices issued by courts, with a total amount involved of 13.8419 million yuan. All of them have either been ruled in the first instance or reached mediation settlements. In addition, the company has also received other forms of claims from some investors, involving 201 investors, with a total claim amount of 49.7921 million yuan. Although the company has made corresponding accounting treatment in accordance with accounting standards, there are still potential risk pressures regarding compensation and reputational risk in the future.

Risk of Material Project Planning Changes

The company’s controlling subsidiary, Yumen Xinneng, plans to invest in and build a “solar thermal + wind power integration” project. The project involves technical uncertainty risks regarding a redesign from secondary reflection to primary reflection. There are also risks of delays not meeting expectations that may be caused by factors such as policy changes, fundraising, and natural conditions. In addition, there are risks of returns not meeting expectations due to factors such as infrastructure construction, policy changes, and market changes, as well as financing risks that may arise if fundraising progress or scale fails to meet expectations.

Risk of Industry Environment and Industry Policy Changes

The company’s major businesses, including high-end equipment manufacturing, defense construction, and new energy, are closely related to the industry environment and policies. If the industry environment weakens in the future or policies change, the company’s ability to secure orders may be affected, which in turn may impact the company’s performance.

Product and Project Quality Risks

The company is engaged in high-end equipment manufacturing and power design and system solutions. The products and systems are complex and have high quality requirements. If quality issues arise during product manufacturing or project implementation, they may lead to increased costs and even trigger situations such as claims, lawsuits, or arbitration, which could affect the company’s operating performance, brand reputation, and industry position.

Compensation of Senior Management and Supervisors: Core Executive Compensation Stable, Equity Incentive Needs Further Improvement

Chairman’s Total Pre-Tax Compensation

Chairman Yi Xiaorong’s total pre-tax compensation received from the company during the reporting period was 1.211 million yuan. No compensation was received from the company’s related parties. The compensation level is basically aligned with the company’s operating scale and industry position.

General Manager (Acting Deputy General Manager)’s Total Pre-Tax Compensation

Director and Deputy General Manager (Acting) Chen Shouhuan’s total pre-tax compensation during the reporting period was 1.112 million yuan. As a core executive responsible for the company’s operational and management, his compensation is reasonably linked to the growth of the company’s performance.

Deputy General Managers’ Total Pre-Tax Compensation

Deputy General Manager Rong Guanglei’s total pre-tax compensation during the reporting period was 0.9843 million yuan, and Yu Zhonghai’s was 0.7208 million yuan. Their compensation levels are consistent with their job responsibilities and contributions.

Chief Financial Officer’s Total Pre-Tax Compensation

Director and Deputy General Manager and Chief Financial Officer Xu Chao’s total pre-tax compensation during the reporting period was 0.9150 million yuan. He is responsible for the company’s financial strategy and capital management, and the compensation reflects the value of his role.

Overall, the company’s compensation system for its directors, supervisors, and senior executives is relatively stable. However, the company has not yet launched an equity incentive plan, and the long-term incentive mechanism needs further improvement, to better bind the core management team and align with the company’s development interests.

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Responsible editor: Xiao Lang Express