REFIRE 2025 Annual Results: Net Loss Narrows to RMB602.83 Million on Lower Revenue and Hefty Impairments

Shanghai REFIRE Group Limited (REFIRE, 02570.HK) released its audited results for the year ended 31 December 2025.

Financial Performance • Revenue fell 8.30% year-on-year (YoY) to RMB595.19 million, mainly on softer demand for fuel-cell systems and components. • Gross profit slid 38.51% YoY to RMB68.70 million, pushing the gross margin down to 11.53% from 17.23% a year earlier. • Loss attributable to shareholders narrowed 18.22% YoY to RMB602.83 million, driven by lower share-based payment, administrative and R&D expenses. • Operating cash outflow improved 57.79% YoY to RMB165.80 million. • No dividend was declared.

Cost Structure and Expenses • Cost of sales decreased 2.00% YoY to RMB526.49 million. • Selling and marketing expenses dropped 26.96% to RMB101.84 million. • Administrative expenses were reduced 54.70% to RMB206.00 million. • R&D spending declined 41.69% to RMB127.82 million. • Net impairment losses on financial assets surged to RMB242.60 million (2024: RMB69.90 million), reflecting higher expected-credit-loss provisions.

Other Income and Finance Costs • Other income and gains more than doubled to RMB86.99 million, supported by higher government grants and interest income. • Finance costs edged up 4.04% to RMB59.92 million as total borrowings reached RMB1.42 billion.

Balance-Sheet Highlights • Cash and cash equivalents stood at RMB498.04 million (-43.63% YoY). • Net current assets declined to RMB721.16 million (2024: RMB1.43 billion); current ratio fell to 1.3 from 1.7. • Net assets totaled RMB1.70 billion, down 12.19% YoY. • Gearing ratio (net debt to total capital plus net debt) increased to 0.52 from 0.46. • Capital expenditure reached RMB272.50 million (2024: RMB60.60 million), centred on expanding production capacity for core components.

Segment and Geographic Mix • Hydrogen fuel-cell systems contributed RMB304.47 million, or 51.14% of total revenue. • Components sales generated RMB225.36 million (37.85%). • Hydrogen-production systems and related components rose sharply to RMB28.16 million. • Overseas markets accounted for RMB46.38 million, down 20.57% YoY, reflecting lower pricing despite higher volumes.

Capital Market Activities • Net proceeds of HK$619.90 million from the December 2024 IPO remain earmarked chiefly for R&D and capacity expansion; approximately HK$339.70 million was unutilised at year-end. • Additional placements and a domestic share subscription in 2025 raised HK$78.30 million and RMB272.17 million respectively to bolster working capital and fund an R&D centre.

Outlook (per management discussion) REFIRE plans to reinforce its position in hydrogen-powered heavy-duty trucks, expand into green-hydrogen industrial applications and continue cost optimisation through localisation of key materials and scale-up of production.