Net profit surges by 142% but still falls short of institutional expectations! Jinli Permanent Magnet's 2025 production and sales hit new highs again, but operating cash flow drops by over 30%

The Daily Economic News Reporter | Cai Ding The Daily Economic News Editor | Dong Xing Sheng

On the evening of March 25, Jinli Permanent Magnet (SZ300748, stock price 30.83 yuan, market value 42.41B yuan) disclosed its 2025 annual report. The company achieved revenue of 7.72B yuan in 2025, a year-on-year increase of 14.11%; net profit attributable to shareholders of the listed company was 706 million yuan, up 142.44% year-on-year; net profit after deducting non-recurring gains and losses attributable to the parent was approximately 620 million yuan, up 264%; basic earnings per share were 0.52 yuan, an increase of 136.36%.

The company plans to distribute a cash dividend of 2.2 yuan (tax included) for every 10 shares to all shareholders, with no bonus shares or capital reserve transfer to increase share capital.

According to data compiled from Wind Financial Terminal, 12 institutions’ consensus forecast for Jinli Permanent Magnet’s net profit attributable to the parent in 2025 is 736.44 million yuan, so the disclosed performance falls short of institutional expectations.

From a vertical perspective, Jinli Permanent Magnet’s revenue of 7.72B yuan and net profit of 706 million yuan in 2025 both set new annual highs. Quarterly, the company achieved revenue of 2.35B yuan in Q4 2025, a quarter-on-quarter increase of 25.65%, setting a quarterly record; net profit attributable to the parent was 190 million yuan, down 9.67% quarter-on-quarter, showing a situation of “higher revenue but lower profit” in the quarter.

In addition to setting a new annual high in performance, Jinli Permanent Magnet’s comprehensive gross profit margin in 2025 also significantly improved—up 10.05 percentage points from 11.13% last year to 21.18%.

The annual report shows that in 2025, Jinli Permanent Magnet’s magnetic material products production and sales reached new highs again, with magnetic material blanks produced about 34.4k tons, up 17.31% year-on-year; finished magnetic material sales were about 25.3k tons, up 21.25%. Regarding capacity expansion, Jinli Permanent Magnet completed the 40k-ton-per-year magnetic material capacity as scheduled by the end of 2025, with actual annual capacity of 38k tons and utilization rate exceeding 90%; the Phase III 20k-ton project in Baotou has started construction, and the company’s magnetic material capacity is expected to reach 60k tons per year by 2027.

In new tracks, during the reporting period, Jinli Permanent Magnet actively laid out the rotor business for humanoid robot motors, having built an automated production line for humanoid robot rotors with small batch deliveries. Meanwhile, the company established a rubber soft magnetic division and built production lines, aiming to provide comprehensive magnetic material solutions.

In R&D, Jinli Permanent Magnet’s full-year R&D investment in 2025 increased by 57.6% year-on-year to 506 million yuan. The company also assembled an automation and intelligentization team of over 300 people, deploying 653 industrial robots and 11 automated production lines.

The annual report also shows that during the reporting period, Jinli Permanent Magnet deepened its ties with China Northern Rare Earth Group and China Rare Earth Group, with procurement from these two giants accounting for 72% of the company’s total procurement, ensuring a stable raw material supply foundation.

Despite the net profit attributable to the parent reaching a new annual high, data from Wind Financial Terminal shows that the 706 million yuan performance still falls short of the 12 institutions’ consensus forecast for 2025, with the disclosed figure being 4.19% lower than the consensus.

The Daily Economic News reporter also noted that although Jinli Permanent Magnet’s net profit attributable to the parent increased by over 140% in 2025, the net cash flow from operating activities during the reporting period decreased by 30.5% year-on-year to 353 million yuan. The company explained that this was mainly due to increased cash payments for purchasing goods and services during the period.

Additionally, Jinli Permanent Magnet’s expenses grew rapidly in 2025, with management expenses up 64.05% year-on-year to about 277 million yuan, compounded by share-based payment expenses and interest on convertible bonds (totaling about 107 million yuan), which diluted some profit margins; financial expenses increased by 67.25% year-on-year, mainly due to increased interest expenses from higher short-term loans and new H-share convertible bonds (about 19.47 million yuan).

At the same time, as of the end of 2025, Jinli Permanent Magnet’s inventory book value rose to 34.4k yuan, accounting for 18.12% of total assets. Affected by this, the company recognized asset impairment losses exceeding 66.17 million yuan during the year (mainly inventory impairments).

The reporter also observed that during the reporting period, there were some personnel changes in Jinli Permanent Magnet’s senior management team. For example, former Vice President Mao Huayun resigned due to personal reasons (effective September 2025); former non-executive director Li Xiaoguang resigned due to work adjustments (effective October 2025); former Vice President Yu Han resigned due to work transfer (effective March 2026).

Cover image source: Meiri Media Asset Library