Shiji Information 2025 Annual Report Analysis: Operating Cash Flow Increased by 374.47%, Investing Cash Flow Increased by 190.73%

Revenue Analysis

In 2025, Stone Forest Information achieved operating revenue of 2.79 billion yuan, a decrease of 5.35% year-on-year. By industry, the computer application and service industry revenue was 2.38B yuan, up 3.27% year-on-year, serving as the company’s core revenue support; wholesale and trade industry revenue was 422 million yuan, a significant decline, becoming the main drag on overall revenue decline. By product, hotel information management system revenue was 1.12B yuan, up 4.63% year-on-year; retail information management system revenue was 589 million yuan, up 9.76%, maintaining growth in the two core businesses; social catering information management system revenue was 101 million yuan, down 9.77% year-on-year; third-party hardware supporting business revenue was 395 million yuan, down 37.04% year-on-year, negatively impacting revenue.

Net Profit and Non-Recurring Net Profit Analysis

In 2025, the net profit attributable to shareholders of the listed company was -166 million yuan, a reduction of 16.44% in losses; non-recurring net profit was -186 million yuan, down 14.56% in losses. The narrowed loss was mainly due to the significant reduction in losses in the hotel information management system segment compared to last year, and a certain profit increase in the retail information management system business; however, the active restructuring of the third-party hardware supporting business led to a large decrease in its profit, still exerting pressure on overall profitability.

Earnings Per Share Analysis

In 2025, basic earnings per share was -0.06 yuan/share, an increase of 14.29%; non-recurring earnings per share was -0.07 yuan/share, up 14.56%. The improvement in earnings per share is directly related to the reduction in net losses, reflecting a marginal improvement in the company’s profitability.

Cost Analysis

In 2025, the company’s total operating expenses were 1.01 billion yuan, down 2.74% year-on-year, demonstrating effective cost control. Specifically:

• Sales expenses: total 271 million yuan, down 2.83%, mainly due to the company’s optimization of sales resource allocation, expanding markets while controlling related expenses.
• Management expenses: total 622 million yuan, down 6.15%, achieved through organizational restructuring and process streamlining to reduce management and operational costs.
• Financial expenses: total -126 million yuan, up 11.68%, mainly due to decreased interest income; changes in cash holdings and deposit interest rates affected interest earnings.
• R&D expenses: total 243 million yuan, roughly flat year-on-year; the company continued to invest heavily in core technology R&D, supporting product upgrades and technological innovation.

R&D Personnel Situation Analysis

At the end of 2025, the company had 1,830 R&D personnel, a decrease of 12.40% year-on-year; R&D personnel accounted for 38.58%, down 3.05%. In terms of educational background, 1,240 R&D staff held undergraduate degrees or above, down 11.95%; in terms of age, 499 R&D personnel were under 30, down 16.97%. The reduction in R&D staff mainly reflects adjustments based on project progress and efficiency optimization, but the company maintained a high R&D investment intensity, with R&D expenditure of 652 million yuan, accounting for 23.38% of operating revenue, up 0.30 percentage points year-on-year.

Cash Flow Analysis

In 2025, the company’s cash flow significantly improved, with details as follows:

• Net cash flow from operating activities: 319M yuan, up 374.47%. Mainly due to the collection of large amounts of receivables, along with cost reductions, personnel optimization, and decreased procurement, reducing cash outflows; provisions for impairment did not affect net cash flow.
• Net cash flow from investing activities: 1.15B yuan, up 190.73%. Mainly because some large-term deposits matured without renewal, reducing overall investment outflows, and asset disposals increased cash inflows.
• Net cash flow from financing activities: -65 million yuan, down 9.24%. The company borrowed more through letter of credit settlements but also repaid more, resulting in net outflows in financing activities.

Potential Risks Analysis

2. Technology and Product Development Risks: Software technology updates rapidly; if the company cannot accurately predict technological trends, adjust products timely, or if new technologies and products cannot be quickly promoted and applied, it may lose its technological and market leadership. The company mitigates this risk by坚持自主创新，加大对新技术、新产品研发投入，将AI技术融合进全新一代云产品升级进程应对该风险。
3. Market and Policy Risks: The company’s business depends on the tourism-related industries of hotels, catering, and retail. Industry slowdown, external shocks, or geopolitical policy uncertainties could adversely affect operations. The company reduces this risk by promoting globalization, expanding overseas markets, and accelerating the transition from software supplier to service platform operator.
4. Operational Management Risks: As the company’s scale expands, higher management standards are required. If management talent reserves and control systems cannot adapt, overall operations may be impacted; additionally, the next-generation cloud-based hotel information system developed overseas may compete with existing products and business models, causing short-term revenue and profit declines. The company responds by introducing global management teams, strengthening internal controls, and expanding overseas cloud product markets.
5. Overseas Investment Risks: In its globalization efforts, overseas investments face regulatory review and control risks. The company mitigates this by thoroughly understanding local laws and environments before investment, engaging local intermediaries during investment, and strengthening post-investment management.

Executive Compensation Analysis

In 2025, Chairman Li Zhongchu received a pre-tax total compensation of 71.5k yuan; COO Kevin Patrick King received 71.5k yuan; Vice Presidents Guan Dongyu and Wang Minmin received 1.1622 million yuan and 1.10 million yuan respectively; Vice President and Board Secretary Luo Fang received 1.1633 million yuan; Vice President and CFO Lai Deyuan received 1.1433 million yuan. Overall, the core management team’s compensation aligns with company performance and role value, forming an effective incentive and restraint mechanism.

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