Lugu Stock Watch | Qingdao Yunlu Co., Ltd. Sees Its First “Double Drop” at Listing, While Under Pressure on Performance, the Dividend Ratio Rises Against the Trend

Text | Wang Yaliu

On the evening of March 30, Qingdao Yunlu Advanced Material Technology Co., Ltd. (688190.SH, hereinafter referred to as “Yunlu Co., Ltd.”) disclosed its 2025 annual report.

Data shows that in 2025, the company achieved operating revenue of 1.89 billion yuan, a slight year-on-year decline of 0.56%; net profit attributable to shareholders was 294 million yuan, down 18.45% year-on-year; and non-recurring net profit was 281 million yuan, down 18.27% year-on-year.

At the same time, the company released its 2025 profit distribution proposal. According to the proposal, the company plans to distribute a cash dividend of 6 yuan per 10 shares to all shareholders (inclusive of tax), totaling 72 million yuan. Combined with the 36 million yuan already distributed in 2025 interim and the 60 million yuan distributed in the first three quarters, the total cash dividend for the full year will be 168 million yuan, accounting for 57.07% of the annual net profit attributable to shareholders.

Image source: Yunlu Co., Ltd. official website

Sales volume rises but gross margin declines, leaving less room for profit

According to disclosures in the annual report, in 2025, Yunlu Co., Ltd.’s sales volume for its main products all increased year-on-year; however, due to the decline in product gross margin, operating profit decreased compared with the same period of the previous year.

As a high-tech enterprise focusing on three major materials—amorphous alloys, nanocrystalline alloys, and magnetic powders—and their products, Yunlu Co., Ltd. has products widely used in cutting-edge fields such as power distribution, new energy vehicles, and 5G new infrastructure.

From the perspective of its business structure, amorphous alloy thin strips and their products remain the company’s main source of revenue. The annual report shows that in 2025, this segment generated revenue of 1.378 billion yuan, accounting for 72.92% of operating revenue, down slightly by 2.94% year-on-year. Nanocrystalline product revenue was 350 million yuan, up 14.66% year-on-year, with its revenue share increasing to 18.53%. Revenue from magnetic powders and their products was 144 million yuan, up 1.95% year-on-year.

In terms of gross margin, in 2025 the company’s overall gross margin was 27.74%, down 2.84 percentage points from the same period last year. By product, the gross margin of amorphous alloy thin strips and their products was 36.31%; nanocrystalline products’ gross margin was 7.67%, which improved compared with the previous period; and the gross margin of magnetic powders and their products was -5.44%.

Annual report screenshot

In its performance express report, Yunlu Co., Ltd. stated that, facing the impact of multiple factors such as the global macroeconomic situation and intensifying industry market competition, the company has actively taken multiple response measures to fully consolidate and stabilize its market share.

Regarding expenses, in 2025 the company’s period expenses were 195 million yuan, up 6.4449 million yuan year-on-year; the period expense ratio was 10.32%, up 0.4 percentage points from the same period last year. Among them, financial expenses changed from -6.6674 million yuan in the same period of the previous year to 2.5095 million yuan, mainly due to a decrease in interest income. R&D expenses were 119 million yuan, up 4.15% year-on-year, accounting for 6.27% of operating revenue.

Operating cash flow from operating activities declined, and the proportion of accounts receivable increased

The annual report shows that in 2025, the net cash flow from operating activities was 31.1151 million yuan, down sharply by 78.4% year-on-year. In the same period, net profit was 294 million yuan, and the ratio of net cash flow from operating activities to net profit was 0.11.

According to statistics from Sina Finance’s listed company research institute “Financial Eagle Eye” early warning system, from 2023 to 2025, Yunlu Co., Ltd.’s net cash flow from operating activities was 219 million yuan, 144 million yuan, and 31.1151 million yuan, respectively. The ratio of net cash flow from operating activities to net profit was 0.66, 0.4, and 0.11, respectively, showing a continuous decline for three consecutive years.

Annual report screenshot

As for accounts receivable, by the end of 2025, the company’s book balance of accounts receivable was 626 million yuan. After making provisions for bad debt of 32.7002 million yuan, the book value was 593 million yuan. The proportion of accounts receivable to operating revenue increased from 24.97% in 2023 to 29.36% in 2024, and further to 31.38% in 2025, rising for three consecutive years.

Regarding inventories, by the end of 2025, the company’s inventory book value was 247 million yuan, an increase of 122 million yuan from the end of the previous year, representing a growth of 96.73%. This increase far exceeded the changes in revenue and operating costs during the same period.

In terms of operating efficiency indicators, in 2025 the company’s accounts receivable turnover ratio was 3.28 times, down 13.56% year-on-year; inventory turnover ratio was 7.32 times, down 26.56% year-on-year; and total asset turnover ratio was 0.58 times, down 10.2% year-on-year.

With performance under pressure, the dividend payout ratio exceeds 50%

According to the profit distribution proposal, the company’s total cash dividend for 2025 was 168 million yuan, accounting for 57.07% of the net profit attributable to shareholders.

Annual report screenshot

From the perspective of equity structure, the company’s controlling shareholder is China Aviation Development Asset Management Co., Ltd., holding 28.5%; the second-largest shareholder is Li Xiaoyu, chairman and general manager, holding 20.82%; and the third-largest shareholder is Guo Keyun, vice chairman, holding 16.5887%.

According to publicly available information, on June 17, 2025, Li Xiaoyu, chairman and general manager, was placed under investigation by the Supervisory Commission of Jilin City, Jilin Province. In its third-quarter report, the company noted, “The responsible person of the company, the person in charge of accounting work and the head of the accounting institution (person in charge of accounting) guarantee that the financial information in the quarterly report is true, accurate, and complete.” On February 8, 2026, the company announced that Li Xiaoyu had been released from the custody measures and resumed normal duties.

In addition, according to the share reduction results disclosed on February 14, 2026, vice chairman Guo Keyun reduced a total of 3.5997 million shares through centralized bidding and block trades due to “personal capital needs,” accounting for 3% of the company’s total share capital, with a total reduction amount of approximately 3.52 billion yuan. After the share reduction, Guo Keyun’s shareholding ratio remained 16.5887%, and he still remains the company’s third-largest shareholder.

Against this backdrop, the company introduced its 2025 profit distribution plan. According to the plan, shareholders with higher shareholding ratios, Li Xiaoyu and Guo Keyun, will both participate in this dividend distribution.

Given the company’s operating situation of “rising sales volume but declining profits” in 2025, how it will balance market share and profitability in the future, and how it will improve the quality of cash flows, are the key focus of market attention going forward.

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