Qingdao Port 2025 Annual Report Analysis: Net Investing Cash Flow Plummets by 7986.57%, Sales Expenses Increase by 34.83%

Operating Revenue: Slight Decline Behind Sector Divergence

In 2025, Qingdao Port recorded operating revenue of 18.806 billion yuan, a year-on-year slight decrease of 0.71%, with its revenue scale remaining within the 18-billion-yuan range. The revenue decline was mainly due to pressure from two major segments: the liquid bulk handling and ancillary services segment was affected by external factors compounded with lower refinery operating rates, resulting in a year-on-year decrease in revenue of 0.606 billion yuan, a decline of 16.5%; the logistics and port value-added services segment saw a decline in agency business revenue, and the segment’s total revenue decreased by 0.483 billion yuan year on year, a decline of 6.4%.

However, the container handling and ancillary services segment became the growth highlight. With the addition of 20 container routes, 5 inland ports, and 3 sea-rail intermodal freight train lines, it achieved revenue of 2.700 billion yuan, up 60.9% year on year, becoming the core driver offsetting declines in other segments.

Net Profit: Up Slightly by 0.7%, Non-GAAP Net Profit Edges Down

In 2025, Qingdao Port achieved net profit attributable to shareholders of listed companies of 5.272 billion yuan, up 0.70% year on year; non-GAAP net profit was 5.045 billion yuan, down 0.64% year on year. The slight increase in net profit was mainly due to the fact that the decline in operating costs (-2.58%) exceeded the decline in revenue, leading to a year-on-year increase in gross profit of 2.7% to 6.895 billion yuan.

The decline in non-GAAP net profit was mainly driven by profit contraction in the dry bulk and liquid bulk segments: the controlling companies’ profit in the dry bulk and general cargo segment decreased by 0.116 billion yuan, and the controlling companies’ profit in the liquid bulk segment decreased by 0.423 billion yuan; together, these weighed on overall earnings performance.

Earnings Per Share: Steady, Earnings Quality Solid

In 2025, basic earnings per share were 0.81 yuan/share, and non-GAAP earnings per share were 0.78 yuan/share, both unchanged from 2024. Because the number of outstanding ordinary shares of the company did not change, the changes in earnings per share remained consistent with the changes in net profit. The stability of the profitability scale directly carried over to the level of earnings per share, reflecting the company’s resilience in earnings.

Expenses: Sales Expenses Jump 34.83%, Financial Expenses Clearly Narrow

In 2025, the company’s period expenses overall showed a pattern of “two increases and two decreases.” The biggest standout change on the expense side was the sharp growth in sales expenses:

• Selling Expenses: Up 34.83% year on year to 87.6874 million yuan, mainly due to increases in expenses such as business publicity expenses, reflecting the company’s increased marketing efforts to expand the market and consolidate route resource development.
• Administrative Expenses: Up 8.83% year on year to 1.16138 billion yuan, mainly driven by higher employee compensation and intermediary service fees, aligning with the company’s business expansion and needs for more refined management.
• Financial Expenses: Down 19.34% year on year to 48.5493 million yuan, mainly due to an increase in interest income and a reduction in interest expense related to actuarial benefits, with results of financial cost control becoming evident.
• R&D Expenses: Up 6.99% year on year to 112.3255 million yuan, maintaining a steady growth trend to support the company’s digital and intelligent transformation.

R&D Investment and Personnel: Continuing to Ramp Up for Tech Transformation

In 2025, the company’s total R&D investment was approximately 245 million yuan. It carried out more than 120 key innovation projects, of which expense-type R&D investment was 112 million yuan. R&D outcomes were significant: the “Fully Automated Container Terminal Intelligent Control System (A-TOS)” won the special prize of the Qingdao Municipal Science and Technology Progress Award, and “Fully Automated Container Terminal Intelligent Control Across the Entire Domain for Multiple Scenarios” won first prize at the Digital & Intelligent Port and Shipping Competition.

In terms of R&D personnel, the company had 557 R&D personnel, accounting for 5.7% of the total headcount. The education structure was mainly bachelor’s degree or above: 74 master’s students and 275 undergraduates, totaling 62.66% of all R&D personnel, providing strong talent support for technological innovation.

Cash Flows: Large Outflow in Investing Cash Flow, Steady Operating Cash Flow

In 2025, the company’s cash flow showed the characteristics of “one stable, one increasing, and one dramatically decreasing”:

• Net Cash Flow from Operating Activities: Up 7.68% year on year to 5.549 billion yuan. This was mainly due to improved recovery of revenue-related receivables and reduced cash outflow under cost control, with the company’s cash-generation ability remaining steady.
• Net Cash Flow from Investing Activities: Down sharply by 7,986.57% year on year to -3.117 billion yuan. It shifted from a small net outflow in 2024 to a large outflow, mainly because the company increased long-term investment in port infrastructure and intelligent projects, reflecting its arrangements for future development.
• Net Cash Flow from Financing Activities: Up 37.83% year on year to -1.885 billion yuan. The scale of net outflow narrowed, mainly because the company reduced the scale of debt repayment, easing funding pressure.

Risks That May Be Faced: External Environment and Industry Competition Coexist

The core risks the company faces mainly include:

1. Market risk: Fluctuations in global trade patterns and geopolitical conflicts may affect cargo throughput, especially for cargo types sensitive to the external environment such as liquid bulk and dry bulk and general cargo.
2. Industry competition risk: Intensifying competition among the Bohai Rim port groups may divert business for the company in terms of route planning and competition for hinterland cargo sources among nearby ports.
3. Operational risk: Port infrastructure investment is large and the cycle is long; if projects fail to enter production as expected, returns may be affected. Meanwhile, in the process of intelligent transformation, pressures related to technology iterations and talent reserves should not be overlooked.
4. Policy risk: Changes in environmental protection policies and industry regulatory standards may increase operating costs, such as additional equipment upgrade investments driven by heightened energy-saving and emissions-reduction requirements in port areas.

Compensation for Executives and Board Members: Core Management Pay Stable

During the reporting period, the chairman of the company, Su Jianguang, had total pre-tax compensation of 883,800 yuan; the general manager, Zhang Jiangnan, had total pre-tax compensation of 843,800 yuan. Core executives such as deputy general managers Zhao Bo and Li Wucheng had total pre-tax compensation in the range of 600,800 yuan to 823,800 yuan. Overall compensation levels were basically the same as in 2024, maintaining stability in management compensation.

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