In 2025, Inovance Technology will show strong development momentum in the market.
The performance report released by the company shows that in 2025, it will achieve operating income of 45.105 billion yuan, a year-on-year increase of 21.77%; net profit attributable to the parent company is 5.050 billion yuan, a year-on-year increase of 17.84%; non-net profit after deduction is 4.951 billion yuan, a year-on-year increase of 22.66%.
From the perspective of profitability indicators, operating costs increased by 21.34% year-on-year, slightly lower than the revenue growth rate, driving the gross profit margin to increase by 0.25 percentage points to 28.95%.
However, due to the slight decrease of 0.28 percentage points in the gross profit margin of the new energy vehicle power system business and the increase in expenses during the period, the net profit margin was 11.42%, a year-on-year decrease of 0.42 percentage points.
The net cash flow generated from operating activities was 6.681 billion yuan, a year-on-year decrease of 7.21%, mainly due to the increase in procurement expenditures, labor expenditures and tax payments. The growth rate of cash outflows reached 27.05%, which was higher than the growth rate of cash inflows of 19.28%.
The continuous optimization of core business structure is a highlight of Inovance Technology.
The industrial automation and digitalization business achieved revenue of 22.245 billion yuan, accounting for 49.32% of the total revenue; the new energy vehicle power system business revenue was 20.323 billion yuan, accounting for 45.06%.
The two together contributed 94.38% of operating income, and the income structure was further concentrated towards highly integrated and high value-added product systems.
The mainland China market achieved revenue of 42.456 billion yuan, accounting for 94.13%, and overseas revenue was 2.649 billion yuan, accounting for 5.87%. The geographical concentration has further increased compared with the previous year.
The single-quarter performance in the fourth quarter is also remarkable.
It achieved operating income of 13.442 billion yuan, net profit attributable to the parent company of 796 million yuan, and non-net profit of 1.062 billion yuan.
The non-net profit for this quarter accounted for 21.45% of the non-net profit for the year, slightly higher than its 21.29% share of the net profit attributable to the parent company, indicating that the operating quality of the current period is relatively stable.
In terms of R&D investment and cost control, the company is driven by two wheels.
During the reporting period, R&D investment increased to 4.256 billion yuan, a year-on-year increase of 35.23%. The number of R&D personnel reached 7,670, a year-on-year increase of 38.50%. The proportion of R&D expenses in revenue rose to 9.44%. Investment intensity and team size expansion accelerated simultaneously, which effectively supported the technology iteration and platform capacity building of the two core businesses.
Sales expenses were 1.536 billion yuan, a year-on-year increase of 3.69%, which was significantly lower than the 21.77% increase in revenue. The sales expense rate dropped from 3.79% in the previous year to 3.41%. The improvement in expense control efficiency partially offset the slight decrease in gross profit margin of the new energy vehicle business and the fall in the overall net profit rate.
The total non-recurring gains and losses were RMB 99.4967 million, accounting for 1.97% of the net profit attributable to the parent company, of which the gains and losses from the disposal of non-current assets were RMB 124.00 million. The changes in fair value and disposal gains and losses arising from the holding of financial assets were -167.00 million yuan, which constituted the main source of non-recurring gains and losses for the current period.
The capital operation and governance structure remain stable.
In terms of shareholder structure, the largest shareholder Huichuan Investment holds 17.22% of the shares, which has not changed significantly from the end of the previous year; the actual controller is still Zhu Xingming, and the proportion of voting rights remains stable; the specific entry and exit of the top ten shareholders was not disclosed in the financial report.
In terms of dividends, the company will distribute a cash dividend of 5 yuan (tax included) for every 10 shares in 2025, with a total dividend of 1.353 billion yuan, accounting for 26.79% of the net profit attributable to the parent company.
