Zhejiang Yingfeng Technology (SH:605055) Xin Lang Cai Jing·2026-01-19 08:34Core Viewpoint - Yingfeng Co., Ltd. (605055.SH) has announced a projected annual loss for 2025, estimating a net profit loss of between 56 million to 45 million yuan, marking a return to annual losses after two years [1][9]. Group 1: Financial Performance - The company reported a significant decline in revenue growth, with a drop from 61.82% in 2021 to 5.34% in 2022, resulting in a net profit loss of 47.48 million yuan [2][10]. - In 2024, revenue growth further slowed to 2.07%, with a 7.21% decline in revenue from its core region of Zhejiang, totaling 1.247 billion yuan [2][10]. - For the first three quarters of 2025, the company achieved revenue of 1.095 billion yuan, a year-on-year decline of 3.63%, with Q1 and Q2 revenues down by 5.45% and 10.05% respectively, before a recovery of 5.18% in Q3 [4][12]. Group 2: Industry Context - The textile dyeing industry is facing significant pressure due to external factors such as tariff impacts and declining demand, leading to a competitive environment characterized by price reductions [4][12]. - The average export price of major dyeing products has fallen to its lowest level in nearly 15 years, indicating a shift towards "price for volume" competition [2][10]. Group 3: Operational Challenges - The company is experiencing increased fixed costs due to the gradual production ramp-up of its third business unit, which began operations in April 2025 [5][14]. - Management expenses rose by approximately 34.41% to 74.4645 million yuan, contributing to the net profit loss of 42.6776 million yuan reported in the third quarter [7][17]. Group 4: Strategic Investments - In 2025, the company invested in two chip companies to explore the integration of AI technology with traditional dyeing processes, although these investments are not expected to yield immediate financial benefits [1][8]. - The company holds a 7% stake in Hangzhou Weiheng, which focuses on integrated computing chips, and has also invested in Qingwei Intelligent, which raised over 2 billion yuan in funding [7][18].