Zhejiang Shibao released its audited 2025 results, reporting robust top-line expansion on the back of strong demand for electric and intelligent steering systems.
Revenue and Earnings • 2025 revenue rose 31.76% year on year to RMB 3.55 billion, driven mainly by a 34.17% jump in sales of steering system products, which contributed 95.9% of total turnover. • Net profit attributable to shareholders increased 21.05% to RMB 180.52 million. Basic and diluted EPS climbed 19.83% to RMB 0.2194. • Profit after deducting non-recurring items grew 12.95% to RMB 154.55 million, indicating sustained core-business momentum.
Margins and Cost Structure • Overall gross profit reached RMB 657.80 million, but the gross margin narrowed to 18.54% (2024: 20.94%) as product price reductions outweighed scale benefits. • Main-business gross margin slid to 17.42% from 19.82%, reflecting intensified competition and pricing pressure. • R&D spending expanded 35.05% to RMB 215.70 million, representing 6.08% of revenue (2024: 5.93%), underscoring continued investment in electrification and intelligent-steering technologies. • Selling expenses rose 5.26% to RMB 54.89 million, but fell to 1.55% of sales (2024: 1.94%) due to operating leverage. General and administrative costs increased 14.48% to RMB 152.53 million, equal to 4.30% of revenue (2024: 4.95%).
Cash Flow and Balance Sheet • Operating cash inflow strengthened markedly to RMB 234.24 million (2024: RMB 1.17 million), supported by higher cash receipts from customers. • Net cash used in investing widened 14.77% to RMB 117.97 million, reflecting heavier capex. Financing outflow reached RMB 24.94 million, mainly due to dividend payments and lower new borrowings. • Year-end cash and bank balances stood at RMB 488.87 million, up 16.80% from 2024. • Total assets expanded 17.46% to RMB 3.83 billion, while equity attributable to shareholders advanced 6.75% to RMB 2.07 billion. The company remained in a net cash position, with a gearing ratio of ‑10.20% (2024: ‑7.25%). • Accounts receivable accounted for 30.29% of total assets; financing receivables more than tripled to RMB 428.92 million, reflecting increased use of banker’s acceptances.
Dividend Proposal The board proposes a cash dividend of RMB 0.60 per 10 shares (RMB 0.06 per share), totalling RMB 49.36 million, subject to shareholder approval at the 2026 AGM.
Operational Highlights • Vehicle-package sales comprised 99.0% of revenue; domestic customers accounted for 97.3% of sales, buoyed by China’s 9.4% expansion in auto sales and a 28.2% surge in new-energy vehicle demand. • Annual production of steering systems rose 37.40% to 6.17 million units; sales volumes climbed 36.21% to 6.07 million units. • Other income reached RMB 49.45 million, with VAT super-deductions and government grants contributing roughly equal shares.
Strategic Outlook Management expects China’s automotive market to keep expanding in 2026 amid policies supporting equipment upgrades and vehicle replacement, broader L3 autonomous-driving pilots, and ongoing electrification. Zhejiang Shibao intends to leverage its R&D investments in steer-by-wire and intelligent control systems to capture growth opportunities while focusing on cost efficiency to stabilise margins.
No material asset acquisitions, disposals or contingent liabilities were reported for the year.
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