Feiwo Technology Q1 2025: Revenue surged by 87.63%, losses significantly narrowed, and the effects of the strategic transformation are beginning to show.
Key Highlights
Significant revenue growth: Revenue in Q1 2025 reached 0.446 billion yuan, a year-on-year increase of 87.63%, mainly driven by a substantial rise in fastener product sales.
Significantly reduced losses: Net loss decreased to 2.6658 million yuan, a year-on-year reduction in losses of 89.19%, with loss per share decreasing from 0.46 yuan to 0.04 yuan.
Gross margin improvement: Sales structure optimization and a decrease in inventory impairment provisions by 41.84%, indicating a trend of rising product prices.
Increased R&D investment: R&D expenses grew by 41.28% to 14.6857 million yuan, with a significant increase in the R&D efforts for non-wind power new products.Progress in capacity expansion: Increase in fixed asset investments, with construction prepayments rising by 95.72%, and an increase in construction projects.
Cash flow transformation: Operating cash flow turned negative, primarily due to receipts being mainly in bills; an increase in bank loans indicates smooth financing channels.
Revenue surged while losses narrowed, showing resilience in the fasteners business.
Feiwo Technology delivered an impressive "increased revenue and reduced losses" report in the first quarter of 2025. The company realized revenue of 0.446 billion yuan, a significant increase of 87.63% year-on-year, and the net loss attributable to shareholders was only 2.6658 million yuan, a substantial reduction from last year's loss of 24.6657 million yuan, down 89.19%, indicating a significant improvement in operational conditions.
This performance improvement is mainly attributed to the significant increase in sales of fastener products. Data shows that the company's cost of goods sold increased by 78.40% year-on-year, lower than the revenue growth rate, suggesting an improvement in gross margin and gradually enhancing profitability. Notably, asset impairment losses decreased by 41.84% year-on-year, which the company attributed mainly to "expected increase in product prices," indicating that the industry's supply and demand pattern may be improving.
From the perspective of financial indicators, Feiwo Technology's loss per share decreased significantly from 0.46 yuan in the same period last year to 0.04 yuan, approaching the breakeven point. Although the weighted average return on net assets remains negative, it has improved from -1.62% to -0.19%, an increase of 1.43 percentage points.
Collaboration in the Industry Chain and capacity expansion progress together, with a clear strategic layout.
Earnings reports show that Feiwo Technology is steadily advancing capacity expansion, with a 60.17% increase in advance payments at the end of the period, primarily for the purchase of steel and other raw materials; other non-current assets increased by 95.72%, mainly for construction project advance payments. This indicates that the company is intensifying its efforts for upstream and downstream integration in the Industry Chain, laying a foundation for future growth.
In terms of research and development innovation, the company increased its R&D expenses by 41.28% year-on-year to 14.6857 million yuan, with particular emphasis on the increase in "R&D expenses for non-wind power new products," showing that the company is actively attempting to diversify and reduce dependence on a single industry. This strategy is expected to enhance the company's risk resistance and inject new power for long-term development.
It is worth noting that the net cash flow from operating activities shifted from 70.6548 million yuan in the same period last year to -49.9556 million yuan this year. The company explained this as primarily due to "customer payments being mainly through bills." Meanwhile, accounts receivable notes increased by 38.06%, and the accounts receivable balance reached 1.183 billion yuan, indicating that the company faces certain pressures in accounts receivable management during its rapid expansion.
The financing capability has been strengthened, providing assurance for capital expenditure.
In terms of funding sources, Feiwo Technology has demonstrated good financing capability. During the reporting period, the net cash flow from financing activities (CFF) of the company was 0.11 billion yuan, a year-on-year increase of 482.02%, mainly due to an increase in bank loans. At the end of the period, the balance of short-term loans was 0.529 billion yuan, and long-term loans were 0.392 billion yuan, indicating the recognition of Financial Institutions regarding the company's development prospects, providing adequate support for its capital expenditure.
The company's total Assets increased by 5.72% from the beginning of the year to 3.808 billion yuan, indicating continuous expansion in scale. However, contract liabilities increased by 123.88% year-on-year, reflecting the increase in advance payments brought by the expansion of the company's Business scale, also indicating recognition of the company's products by downstream customers.
Future Outlook
Looking to the future, investors need to pay attention to the following aspects:
Sales structure optimization process: Whether the profitability improvement driven by the growth in fastener product sales can be sustained.
R&D of new non-wind power products: The progress of the diversification strategy and the market performance of new products.
Accounts receivable management: How to maintain healthy cash flow during rapid Business growth.
Effectiveness of capacity expansion: the release time of new capacity and its contribution to profitability.
Industry supply and demand pattern: whether the upward trend in product pricing can be sustained, and the recovery situation of gross margin.
Feiwo Technology's significant revenue increase in the first quarter but still showing a slight loss reflects that the company is in a transitional growth stage. If product prices continue to rise, the release of capacity goes smoothly, and breakthroughs in the R&D of non-wind power new products are achieved, the company is expected to realize a comprehensive improvement in profitability in the future.
