The 2025 annual report of Boshen Co., Ltd. has been released, and various data reflect the company’s operating conditions in this year.
From the perspective of operating income, Boshen Co., Ltd. will achieve operating income of 1.693 billion yuan in 2025, a year-on-year increase of only 0.72%, and the revenue scale is basically the same.
In terms of regions, domestic business revenue was 1.294 billion yuan, a year-on-year increase of 7.56%; foreign business revenue was 399 million yuan, a sharp decline of 16.50% year-on-year, and overseas market pressure was obvious.
In terms of industries, the coated abrasive tools industry contributed 904 million yuan in revenue, accounting for 53.37% of the total revenue, a year-on-year increase of 1.91%, and is the core support of the basic revenue base; the rail transit equipment parts industry revenue was 359 million yuan, a year-on-year increase of 11.74%, becoming the main driving force for revenue growth; the hardware tools industry revenue was 397 million yuan, a year-on-year decrease of 7.93%, which lowered the overall revenue growth rate.
In terms of net profit, the company will achieve a net profit of 155 million yuan attributable to shareholders of listed companies in 2025, down 19.33% year-on-year; net profit after excluding non-recurring gains and losses is 147 million yuan, down 17.43% year-on-year, and core profitability has dropped significantly.
Judging from the single-quarter data, the net profit attributable to the parent company in the fourth quarter was -963,000 yuan, which was the first single-quarter loss and became the main drag on the decline in profits throughout the year.
Earnings per share also fell simultaneously with net profit.
Basic earnings per share in 2025 will be 0.29 yuan/share, a year-on-year decrease of 19.44%; non-excluding earnings per share will be 0.28 yuan/share, a year-on-year decrease of 17.65%, and the level of shareholder earnings per share has declined.
In terms of expenses, the company’s expenses during 2025 will total 216 million yuan, a year-on-year increase of 3.03%. The expense scale is basically stable, but the internal structure has undergone significant changes.
Among them, the substantial increase in financial expenses has become the core feature of the expense side, while sales, management, and research and development expenses have all maintained steady growth.
Sales expenses were 55.3575 million yuan, a year-on-year increase of 2.61%, mainly due to the increase in leasing fees and other expenses.
Administrative expenses were 91.1355 million yuan, a year-on-year increase of 5.66%. The main driving factors were the increase in sewage treatment fees, employee salaries, water, electricity and steam fees.
Financial expenses will increase from -7.4254 million yuan in 2024 to 5.6045 million yuan in 2025, a year-on-year increase of 175.48%. This is mainly due to the decrease in exchange gains caused by exchange rate changes.
R&D expenses were 63.9493 million yuan, a year-on-year increase of 8.37%, mainly due to the increase in test materials and other R&D expenses.
In terms of R&D personnel, the number of R&D personnel in the company will be 161 in 2025, a year-on-year decrease of 10.06%; the proportion of R&D personnel to total employees will be 9.47%, a year-on-year decrease of 0.88 percentage points.
However, from the perspective of academic structure, the academic level of R&D personnel remains at a high level, and the core R&D team has good stability.
In terms of cash flow, the company’s net increase in cash and cash equivalents in 2025 was 113 million yuan, a significant year-on-year increase of 269.53%, and the overall cash flow situation improved.
Among them, cash flow from operating activities maintained growth, cash flow from investing activities turned from net outflow to net inflow, and net cash outflow from financing activities expanded.
The net cash flow generated from operating activities was 206 million yuan, a year-on-year increase of 23.21%, showing that the company’s ability to collect cash from operations has been enhanced and the quality of earnings has improved.
The net cash flow generated from investing activities was 21.1147 million yuan, a significant year-on-year increase of 113.81%, turning from a net outflow in the previous year to a net inflow.
The net cash flow generated from financing activities was -109 million yuan, a year-on-year net outflow expansion of 27.24%, mainly due to the increase in cash for dividend distribution and profit payment.
The risks that the company may face cannot be ignored.
In terms of overseas market sales risks, the company’s overseas revenue accounts for approximately 23.58%. The current overseas tariff policy continues to increase, major customers are in an inventory digestion cycle, and the risk of exchange rate fluctuations is superimposed, and overseas business is facing greater pressure.
In terms of the risk of raw material price fluctuations, the diamond, steel, metal powder and other raw materials required for the company’s production account for more than 60% of the total product cost. Raw material price fluctuations will directly affect the company’s profits.
In terms of goodwill impairment risk, as of the end of 2025, the company’s goodwill balance was 1.130 billion yuan. If the future operating performance of the subsidiary is not as good as expected, it will face further goodwill impairment risk.
In terms of human resources risks, as the company expands and diversifies its business, the demand for management, technology research and development and other talents increases. If it cannot effectively attract and retain core talents, it will affect the company’s innovation capabilities and operational efficiency.
In terms of remuneration for directors, supervisors and senior executives, Chairman Du Jixin received a total pre-tax remuneration from the company during the reporting period of 483,700 yuan. General Manager Li Shanda received a total pre-tax remuneration of 735,800 yuan during the reporting period. The remuneration of deputy general managers Hou Junyan and Jing Chengming was basically the same year-on-year. Gong Jinghui and Wang Junjie were remunerated based on their actual service time due to their new positions.
