04,17,2026 42 views
【instrumentInternet industry financial report】On April 16th, Sanchuan Wisdom (300066. SZ) disclosed its 2025 annual report. This annual report presents a sharp contrast in performance: the annual operating income has shown a significant decline, but both the net profit attributable to the parent company and the net profit after deducting non recurring expenses have achieved explosive growth. At the same time, the company has launched a cash dividend plan to give back to shareholders.
Image source: Mikawa Smart Announcement
During the reporting period, Sanchuan Smart achieved a revenue of 1.151 billion yuan, a year-on-year decrease of 21.91% compared to 1.473 billion yuan in the same period of 2024; Realize a net profit attributable to shareholders of the listed company of 142 million yuan, a significant increase of 122.80% compared to 64 million yuan in 2024; The net profit attributable to shareholders after deducting non recurring gains and losses was 64.171 million yuan, compared to a loss of over 17 million yuan in the same period of 2024, a year-on-year increase of 483.32%; Basic earnings per share were 0.14 yuan, a year-on-year increase of 122.84%.
Main reason for revenue decline: active contraction of rare earth business
The decline in company revenue is mainly due to the controlled subsidiary, Yingtan TianhePermanent magnet materialThe impact of the business strategy adjustment of Tianhe Permanent Magnet Co., Ltd. (hereinafter referred to as "Tianhe Permanent Magnet"). Tianhe Permanent Magnet's main business is the recycling and utilization of rare earth resources. After the end of 2024 performance betting period, Mikawa Wisdom will fully take over its operating rights in 2025.
Faced with the inverted market prices of rare earth oxides at the beginning of the year and the uncertain industry situation, the company adopted a cautious strategy of "controlling scale, calculating on a per order basis, and operating steadily" for its rare earth business, significantly reducing its low gross profit rare earth oxide trading business. In 2025, the revenue from rare earth trade business was only 2.6359 million yuan, while in the same period of 2024, it reached 220 million yuan, directly leading to a significant year-on-year decline in the revenue of the rare earth sector, which in turn dragged down the overall revenue of the company.
The main reason for the significant increase in net profit is due to non recurring gains and losses and the reversal of losses in the rare earth business
Outstanding contribution to non recurring gains and losses: In 2025, the company's non recurring gains and losses reached 77.9048 million yuan, accounting for 54.83% of the net profit attributable to the parent company. Among them, the pledged stocks used for performance compensation of Tianhe Permanent Magnet brought a fair value change income of 69.5714 million yuan in financial assets due to the rise in stock price, becoming the core driver of profit growth. In addition, the reversal of inventory depreciation losses and government subsidies also contributed to some of the profits.
Turning losses into profits in rare earth business: With the recovery of the rare earth oxide market and price increase in the second half of 2025, coupled with the optimization of Tianhe Permanent Magnet production process (rare earth oxide yield reaching 96%, higher than the industry average of 93% -94%) and improved internal governance, the rare earth business has successfully turned losses into profits. Tianhe Permanent Magnet will incur a loss of 159 million yuan in 2024 and achieve profitability in 2025, significantly increasing the company's performance.
Significant achievements in cost control: The total expenses of the company during 2025 amounted to 227 million yuan, a year-on-year decrease of 7.02%. Among them, sales expenses amounted to 97.4227 million yuan, a year-on-year decrease of 13.11%; The research and development expenses amounted to 51.2296 million yuan, a year-on-year decrease of 12.72%, and cost optimization further improved the profitability level.
Business sector: Smart water management stabilizes foundation, rare earth business welcomes turning point
Smart Water Management: As a Domestic NB IoTIoT water meterA leading enterprise, the company's products cover 39 countries worldwide, serving over 500 water companies and nearly 100 million water users. The shipment volume of smart water meters ranks among the top in the industry. In 2025, the company will continue to deepen its "one body, two wings" strategy of smart metering, smart energy, and high-quality water supply, expand high value-added services such as DMA zoning metering and pipeline leakage control, and the smart water platform has been connected to over 15 million intelligent terminals. From the perspective of income structure, smart water meters account for 57.43% and mechanical water meters account for 19.39%, providing stable cash flow for the company.
Rare earth recycling and utilization: Tianhe Permanent Magnet is one of the few enterprises in the industry with the ability to handle molten salt slag, with outstanding technological advantages. By 2025, the company will complete the integration and management of Tianhe Permanent Magnet, achieving profitability while controlling risks. As the rare earth market continues to recover, the company plans to gradually increase investment in rare earth business production and trade, which is expected to become an important engine for future performance growth.
The annual report also disclosed the profit distribution plan for the year 2025: the company will distribute a cash dividend of 0.5 yuan (including tax) per 10 shares to all shareholders based on a total share capital of 1040033300 shares, with a total cash dividend of approximately 52.017 million yuan, without bonus shares or capital reserve conversion into share capital. This plan still needs to be submitted to the company's shareholders' meeting for approval.
Overall, in 2025, Sanchuan Wisdom is in a critical period of business structure adjustment. By reducing rare earth business risks, optimizing internal management, and seizing market recovery opportunities, it has achieved significant improvement in profitability quality. In the future, with the continuous deepening of smart water business and the gradual recovery of rare earth business, the company is expected to experience synchronous growth in revenue and profit.
Risk Warning: This article is based on the announcements and public information of listed companies and does not constitute investment advice. The market is risky, and investment needs to be cautious.
