Net Profit Surges 142% Yet Falls Short of Institutional Expectations! Jingci Yongci's 2025 Production and Sales Hit New Records, but Operating Cash Flow Declines Over 30%

AI · What factors behind the missed institutional forecasts?

Daily Economic News Reporter: Cai Ding Daily Economic Editor: Dong Xing Sheng

On the evening of March 25, Jinli Permanent Magnet (SZ300748, stock price 30.83 yuan, market value 42.409 billion yuan) disclosed its 2025 annual report. The company achieved revenue of 7.718 billion yuan in 2025, a year-on-year increase of 14.11%; net profit attributable to shareholders of the listed company was 706 million yuan, up 142.44%; net profit after deducting non-recurring gains and losses was about 620 million yuan, up 264%; basic earnings per share were 0.52 yuan, an increase of 136.36%.

The company plans to distribute a cash dividend of 2.2 yuan (tax included) for every 10 shares to all shareholders, with no bonus shares or capital reserve transfer to increase share capital.

According to data compiled from Wind Financial Terminal, 12 institutions’ consensus forecast for Jinli Permanent Magnet’s net profit attributable to shareholders in 2025 was 736.44 million yuan, so the disclosed performance fell short of institutional expectations.

Magnetic material product production and sales hit new highs

From a vertical perspective, Jinli Permanent Magnet’s revenue of 7.718 billion yuan and net profit of 706 million yuan in 2025 both set new records for a single year. Quarterly, the company achieved revenue of 2.345 billion yuan in Q4 2025, a quarter-on-quarter increase of 25.65%, setting a quarterly record; net profit attributable to shareholders was 190 million yuan, down 9.67% quarter-on-quarter, showing a situation of “higher revenue but not higher profit” in the single quarter.

In addition to setting annual records, Jinli Permanent Magnet’s comprehensive gross profit margin in 2025 also significantly improved—up 10.05 percentage points from 11.13% last year to 21.18%.

The annual report shows that in 2025, Jinli Permanent Magnet’s magnetic material product production and sales reached new highs again, with approximately 34,400 tons of magnetic material blanks produced, a year-on-year increase of 17.31%; finished magnetic material sales were about 25,300 tons, up 21.25%. Regarding capacity expansion, Jinli Permanent Magnet completed the 40,000-ton-per-year magnetic material capacity as scheduled at the end of 2025, with actual annual capacity of 38,000 tons and utilization rate exceeding 90%; the Phase III 20,000-ton project in Baotou has started construction, and the company’s magnetic material capacity is expected to reach 60,000 tons per year by 2027.

In new sectors, during the reporting period, Jinli Permanent Magnet actively expanded into the embodied robot motor rotor business, establishing an automated production line for embodied robot rotors with small batch deliveries. Meanwhile, the company set up a rubber soft magnetic division and built production lines, aiming to provide comprehensive magnetic material solutions.

In R&D, Jinli Permanent Magnet’s full-year R&D investment in 2025 increased by 57.6% year-on-year to 506 million yuan. The company also assembled an automation and intelligent team of over 300 people, deploying 653 industrial robots and 11 automated production lines.

The annual report also shows that during the reporting period, Jinli Permanent Magnet deepened its cooperation with China Northern Rare Earth Group and China Rare Earth Group, with procurement from these two giants accounting for 72% of the company’s total procurement, ensuring a stable raw material supply base.

Operating cash flow down over 30% year-on-year

Despite the record high net profit attributable to shareholders, data from Wind Financial Terminal shows that the 706 million yuan performance still fell short of the 12 institutions’ consensus forecast for Jinli Permanent Magnet’s net profit attributable to shareholders in 2025, which was 741 million yuan, meaning the disclosed figure was 41 million yuan below the consensus.

Daily Economic News reporter also noted that although Jinli Permanent Magnet’s net profit attributable to shareholders in 2025 increased by over 140% year-on-year, the net cash flow from operating activities during the reporting period decreased by 30.5% to 353 million yuan. The company explained that this was mainly due to increased cash payments for purchasing goods and receiving services.

Additionally, Jinli Permanent Magnet’s expenses grew rapidly in 2025, with management expenses up 64.05% to about 277 million yuan, compounded by share-based payment expenses and interest on convertible bonds (totaling about 107 million yuan), which diluted some profit margins; financial expenses increased by 67.25%, mainly due to increased interest costs from higher short-term loans and new H-share convertible bonds (about 19.47 million yuan).

At the end of 2025, Jinli Permanent Magnet’s inventory book value rose to 2.777 billion yuan, accounting for 18.12% of total assets. As a result, the company recognized asset impairment losses exceeding 66.17 million yuan during the year (mainly inventory impairments).

The reporter also observed some personnel changes in the senior management team during the reporting period. For example, former Vice President Mao Huayun resigned due to personal reasons (effective September 2025); former non-executive director Li Xiaoguang resigned due to work adjustments (effective October 2025); former Vice President Yu Han resigned due to work transfer (effective March 2026).

Daily Economic News