Probiotic Co., Ltd. 2025 Annual Report Analysis: Net profit attributable to parent company plummeted by 67.17% year-on-year, and net cash flow from financing activities sharply decreased by 401.81%

Operating Revenue: Core Business Under Pressure, Diversified Layout Shows Initial Results

In 2025, the company achieved operating revenue of 2.95B yuan, down 5.85% year-over-year. By business segment, the core chicken revenue was 2.29B yuan, a significant decrease of 15.15% year-over-year, becoming the main drag on revenue decline; pig revenue surged to 419 million yuan, an increase of 87.28% year-over-year; livestock equipment revenue was 167 million yuan, up 27.75%; dairy product revenue was 45.79 million yuan, down 11.10%.

From the sales model perspective, direct sales revenue was 2.59B yuan, a slight increase of 0.41% year-over-year, accounting for 87.57% of total revenue; distribution revenue was 367 million yuan, a sharp decrease of 34.58%, accounting for 12.43%.

Net Profit and Non-Recurring Net Profit: Significant Decline, Limited Hedge from Breeding Pig Business

In 2025, net profit attributable to shareholders of the listed company was 165 million yuan, a sharp decrease of 67.17% year-over-year; non-recurring net profit was 170 million yuan, down 66.08%. The performance decline was mainly due to the chicken business, although the pig business achieved high growth, its small base meant it could not fully offset the decline in chicken business performance.

Earnings Per Share: Declined Along with Net Profit

In 2025, basic earnings per share were 0.15 yuan/share, down 67.39% year-over-year; non-recurring earnings per share were 0.16 yuan/share, down 65.96%, consistent with the decline in net profit and non-recurring net profit, reflecting an overall decrease in the company’s profitability.

Expenses: Significant Drop in Financial Expenses, Restructuring of R&D Investment

In 2025, the company’s total period expenses were 306 million yuan, down 10.24% year-over-year, detailed as follows:

R&D Investment: Capitalization Rate Significantly Increased

In 2025, R&D expenditure was 127 million yuan, a slight decrease of 1.01% year-over-year, accounting for 4.29% of operating revenue, up 0.21 percentage points. Capitalized R&D costs reached 11.35M yuan, a huge increase of 584.47% year-over-year, with the capitalization rate rising from 1.30% last year to 8.96%, mainly due to capitalization of breeding research expenses for egg-laying chicken varieties.

R&D Personnel: Steady Team Expansion

In 2025, the company had 141 R&D staff, an increase of 10 people (7.63%) year-over-year; R&D personnel accounted for 2.08% of total staff, up 0.13 percentage points. In terms of education, 51 personnel held bachelor’s degrees or above, an increase of 2 people, representing 36.17% of R&D staff; age-wise, R&D personnel aged 30-40 increased by 7, a 14.58% rise, indicating a younger and more professional team with ongoing skill enhancement.

Cash Flow: Operating Cash Flow Shrinks, Financing Cash Flow Turns Negative

In 2025, net increase in cash and cash equivalents was -379 million yuan, a sharp decline of 202.20% year-over-year, mainly due to changes in cash flows from operating and financing activities:

Potential Risks: Multiple Risks Coexist, Ongoing Attention Needed

2. Industry cycle risk: The company’s main businesses are heavily affected by the livestock and poultry industry cycle. If the industry enters a downturn, product prices will directly impact profitability.
3. Biosecurity risk: Livestock and poultry farming face risks of disease transmission. Large-scale outbreaks could cause significant operational disruptions.
4. Raw material price fluctuation risk: Volatility in feed and other raw material prices directly affects production costs. Significant increases could squeeze profit margins.
5. Market competition risk: As industry consolidation progresses, competition intensifies. If the company cannot continuously enhance product competitiveness, market share may be squeezed.

Management and Directors’ Compensation: Core Executives’ Remuneration Remains Stable

In 2025, Chairman Cao Jisheng received a pre-tax total compensation of 1.6944 million yuan; General Manager, Board Secretary, and CFO Lin Jie received 990,100 yuan; Executive Vice President Hao Wenjian, Vice Presidents Zuo Changkui and Guo Longzong each received 842k yuan. Overall compensation levels are generally aligned with company performance and industry standards.

Click to view the original announcement>>

Disclaimer: The market involves risks; investment should be cautious. This article is automatically generated 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 official announcements for accuracy. For questions, contact biz@staff.sina.com.cn.