Jinrui Mining 2025 Annual Report Analysis: R&D Expenses Surge by 79.47%, Operating Cash Flow Halved

Core Profitability Indicators Analysis

Operating Revenue: Slight Decrease of 3.06%, Clear Pressure in the Second Half

In 2025, Jinnui Mining achieved an operating revenue of 332,526,258.84 yuan, down 3.06% from 343,038,099.52 yuan in 2024. Quarterly data shows that the company’s total operating revenue in the first half of the year was 180,711,046.14 yuan, while in the second half it was only 151,815,212.70 yuan, a year-on-year decline of 17.12%. This was mainly due to a significant drop in the prices of core products such as strontium carbonate in the second half, squeezing revenue scale.

Net Profit: Down 12.70% Year-on-Year, Non-Recurring Gains and Losses Drag Performance

The company’s net profit attributable to shareholders of the listed company in 2025 was 30,566,945.76 yuan, a decrease of 12.70% from 35,013,478.28 yuan in the previous year. After deducting non-recurring gains and losses, net profit attributable to shareholders was 32,737,514.35 yuan, a narrower decline of 9.16%. The total non-recurring gains and losses amounted to -2,170,568.59 yuan, mainly due to a loss of 2,182,593.17 yuan from disposal of non-current assets, which became a major factor dragging performance.

Earnings Per Share: Declined Along with Net Profit

Basic earnings per share decreased from 0.121 yuan/share in 2024 to 0.106 yuan/share, a 12.40% drop; non-recurring basis earnings per share from 0.125 yuan/share to 0.114 yuan/share, an 8.80% decrease, consistent with the trend of net profit and non-recurring net profit.

In-Depth Analysis of Expense Structure

Overall Expenses: Significant Growth in R&D Investment, Rigid Management Costs

In 2025, the company’s total expenses were 36,209,682.74 yuan, up 35.40% from 26,744,143.19 yuan in 2024, mainly driven by a substantial increase in R&D and management expenses.

Selling Expenses: Slight Decrease of 3.94%, Scale Remains Stable

Selling expenses were 1,449,204.58 yuan, a slight decrease of 3.94%, mainly due to material consumption dropping from 268,324.35 yuan to 88,635.73 yuan, a 66.96% decrease. The overall scale of sales expenses is low, indicating the company’s product sales channels are relatively mature, with less market promotion investment needed.

Management Expenses: Surge of 22.01%, Salary and Office Costs Rise

Management expenses increased by 22.01% to 39,997,546.49 yuan, with employee compensation rising from 21,095,044.01 yuan to 29,321,342.79 yuan, a 38.99% increase, being the core reason for the growth. Additionally, safety and environmental protection fees, party and league activity expenses, and other items also increased to varying degrees, reflecting higher investment in internal management and compliance.

Financial Expenses: Reduced Interest Income, Net Narrowed

Financial expenses were -7,444,561.48 yuan (net income), down 15.17% from -8,775,394.68 yuan in 2024, mainly due to interest income decreasing from 8,562,273.78 yuan to 7,689,316.82 yuan, a 10.19% decline, while interest expenses increased from 27,766.80 yuan to 46,363.63 yuan, resulting in a narrower net financial gain.

R&D Expenses: Sharp Increase of 79.47%, Focus on Technology Upgrades

R&D expenses grew significantly by 79.47% to 2,207,493.15 yuan, with employee compensation rising from 909,055.24 yuan to 1,431,208.21 yuan, a 57.44% increase. Expenses for depreciation, consulting, and other items also increased notably. The company’s R&D mainly focuses on low-nitrogen transformation of kilns, electronic-grade production line upgrades, aiming to improve environmental friendliness and product quality.

R&D Personnel Status

The company’s R&D team size remains stable, with no major changes in core personnel structure. The large increase in employee compensation reflects stronger incentives for R&D staff and increased human resource investment in R&D projects. Progress on projects like low-nitrogen kiln transformation has entered the implementation stage, with potential future conversion into actual production benefits.

Cash Flow Situation Analysis

Overall Cash Flow: Net Turned Negative, Financing Expenditure Reduced

In 2025, the company’s net increase in cash and cash equivalents was 18,401,709.84 yuan, an increase from 12,807,519.78 yuan in the previous year. However, net cash flow from operating activities sharply declined, while investment cash flow turned positive, and financing cash flow narrowed.

Operating Cash Flow: Halved, Receivables and Cost Payments Under Pressure

Net cash flow from operating activities was 23,667,253.28 yuan, down 48.08% from 45,583,940.66 yuan in 2024. Main reasons include:

1. Cash received from sales of goods decreased by 19,221,551.36 yuan, due to falling product prices in the second half and increased use of bank acceptance bills, slowing cash collection;
2. Payments to employees and for employee wages increased by 9,103,010.39 yuan, and taxes and fees paid increased by 14,774,447.00 yuan, putting pressure on cash outflows.

Investment Cash Flow: Turned Positive, Structural Deposit Adjustment Impact

Net cash flow from investing activities was 15,897,997.13 yuan, reversing from -2,138,552.26 yuan last year. Mainly due to a reduction in structured deposits purchased from 524.5k yuan to 508.9k yuan, while cash received from investment recoveries remained at 459k yuan, plus increased investment income of 822,123.29 yuan, driving the positive cash flow.

Financing Cash Flow: Narrowed by 31.74%, Dividend Payments Reduced

Net cash flow from financing activities was -21,083,017.80 yuan, an improvement of 31.74% from -30,888,022.08 yuan in 2024, mainly because cash paid for dividends, profit distribution, or interest decreased from 30,013,789.56 yuan to 20,172,339.12 yuan, a reduction of 9,841,450.44 yuan.

Potential Risks

Product Price Fluctuation Risk

The strontium salt industry is cyclical. In the second half of 2025, prices of core products like strontium carbonate dropped sharply, directly affecting profitability. If industry capacity continues to expand and market competition intensifies, product prices may further decline, impacting performance.

Raw Material Cost Risk

The prices of raw materials such as tianqingshi (feldspar) and coal are highly affected by supply and demand. Significant increases in raw material prices, if not passed on to product prices, could squeeze gross margins.

Environmental Compliance Risk

As a chemical industry company, it faces strict environmental regulations. The safety and environmental protection expenses increased by 71.87% in 2025, and future standards may require ongoing investments in environmental equipment upgrades and pollution control, potentially increasing operating costs.

Management and Board Compensation

In 2025, the total remuneration for key management personnel was 2.0659 million yuan, down 22.65% from 2.6710 million yuan last year. Among them:

• Chairman Ren Xiaokun’s pre-tax remuneration was 524.5k yuan;
• General Manager Zheng Yonglong’s pre-tax remuneration was 508.9k yuan;
• Vice Presidents Gan Chenxia and Yuan Xianglong’s pre-tax remunerations were 459k yuan and 453.5k yuan, respectively;
• Financial officer Meng Li was appointed in January 2026 and did not receive salary during the reporting period.

The overall decrease in remuneration mainly results from personnel changes and performance assessments, aligning with the company’s downward trend in performance.

Click to view the original announcement>>

Disclaimer: The market carries risks; investment should be cautious. This article is automatically published by an AI model based on third-party databases and does not represent Sina Finance’s views. All information herein is for reference only and does not constitute personal investment advice. Please refer to actual announcements for accuracy. For questions, contact biz@staff.sina.com.cn.