Dajin Heavy Industries Submits Best Annual Report Since IPO Amid Surging Overseas Orders and Rapidly Rising Financial Leverage Ratio

Interface News Reporter Zhao Yangge

With the disclosure of the 2025 annual report, Dajin Heavy Industry (002487.SZ) delivered a performance report that hit new highs in both revenue and net profit since its listing, stunning the market.

This core equipment supplier for offshore wind power has successfully seized the European energy transition opportunity through a forward-looking overseas expansion strategy. Its export business has experienced explosive growth, becoming the main engine driving its performance surge.

However, behind this impressive “going global” report, risks associated with rapid expansion—such as high customer concentration, asset heavy-asset burdens, and rising financial leverage—are gradually surfacing, laying the groundwork for future cautious development.

Dajin Heavy Industry achieved operating revenue of 6.174 billion yuan in 2025, a significant year-on-year increase of 63.34%; net profit attributable to shareholders of listed companies reached 1.103 billion yuan, up 132.82% year-on-year; net profit after deducting non-recurring gains and losses was 1.077 billion yuan, an increase of 148.68%. This performance set a new high since the company’s listing.

Along with the high growth, Dajin Heavy Industry plans to distribute a cash dividend of 0.87 yuan (tax included) per 10 shares to all shareholders, totaling 55.4842 million yuan (tax included). Including the interim dividend of 54.8464 million yuan paid in 2025, the total annual cash dividend will reach 110 million yuan, accounting for 10% of the company’s net profit.

Public information shows that Dajin Heavy Industry is a core equipment supplier in the offshore wind power sector. Since 2019, the company has been exploring and developing the European offshore wind market, gradually securing multiple overseas project orders from 2022. By 2025, the company experienced a comprehensive explosion in export orders.

In 2025, Dajin Heavy Industry’s export revenue reached 4.597 billion yuan, a substantial increase of 165.26% year-on-year; export business revenue accounted for 74.46% of total revenue, up 28.61 percentage points from the previous year. Meanwhile, the gross profit margin of export business in 2025 reached 33.95%, with the contribution of exported products to overall gross profit soaring from 59.16% to 81.06%.

Export Business Data   Compiled by Interface News

Dajin Heavy Industry states, “The company’s revenue structure is dominated by overseas business. As of the end of 2025, the total overseas order backlog exceeds 10 billion yuan, mainly concentrated in deliveries over the next two years, covering offshore wind projects in the North Sea, Baltic Sea, and other regions.”

In contrast, the domestic business has contracted, with revenue dropping from 2.047 billion yuan in 2024 to 1.577 billion yuan in 2025, and its share of total revenue decreasing from 55.15% to 25.54%.

Regarding the dual growth in revenue and net profit in 2025, Dajin Heavy Industry attributes it to three main reasons:

• Rapid increase in delivery volume and value of overseas offshore wind projects;
• Higher standards in the construction of exported offshore engineering products, bringing greater added value;
• The company provides systematic services including offshore wind equipment construction, transportation, and localized installation, further increasing the overall value of projects executed.

Since 2022, geopolitical tensions in Europe have significantly heightened energy security concerns. Over the past five years, offshore wind auction capacity in Europe has totaled 60GW.

In 2025, Europe completed the second-highest auction scale in history, reaching 15.3GW, with the following distribution: UK 8.44GW, Poland 3.44GW, France 1.5GW, Germany 1GW, Ireland 0.9GW.

Source: Announcement

Looking ahead to the next five years, according to the “European Wind Power Installed Capacity Outlook” report released by Wind Europe, Europe will add 151GW of installed capacity, with an average annual installation of 30GW. It is estimated that offshore wind will account for about 23% of the new capacity, meaning Europe’s offshore wind annual installation capacity is expected to be around 7GW over the next five years.

It can be said that Dajin Heavy Industry’s rapid development in recent years has undoubtedly been riding the strong wave of Europe’s energy transition.

However, behind this fast growth, the annual report also reveals some noteworthy risks.

First, the concentration of major customers has significantly increased.

The 2025 annual report shows that the top five customers of Dajin Heavy Industry had a combined sales amount of 4.605 billion yuan, accounting for 74.59% of total sales. In 2022, this proportion was only 35.83%. This indicates the company’s operations are becoming increasingly dependent on key clients. Any fluctuations in the core customers’ operations could directly transmit risks to Dajin Heavy Industry.

In the annual report, the company’s customer names are anonymized. Interface News contacted the listed company, and a relevant person explained that the company has confidentiality agreements with each customer. Many customers are overseas companies, and non-disclosure is intended to better maintain cooperation and ensure smooth order acquisition.

Second, the company’s assets are “heavy.”

To accommodate continuous growth in project orders, Dajin Heavy Industry invested heavily in base construction, dock engineering, and other areas in 2025.

The annual report shows that the balance of construction in progress was 1.562 billion yuan at the end of the period, up about 120% from 708 million yuan at the beginning of the year; fixed assets increased from 2.309 billion yuan to 3.132 billion yuan, a growth of approximately 35%. As these projects in progress are gradually transferred into fixed assets, the impact of subsequent depreciation and amortization on future profits becomes a factor requiring careful assessment.

Third, financial leverage levels have increased.

According to the annual report, Dajin Heavy Industry’s net cash flow from operating activities in 2025 was 1.227 billion yuan, a 13.26% increase from 2024. However, net cash flow from investing activities was -2.664 billion yuan, a change of -1322.79% year-on-year.

To seize market opportunities and achieve rapid expansion, the company has significantly increased its financial leverage.

Specifically, short-term borrowings rose from 3.403 million yuan in 2024 to 289 million yuan in 2025, a year-on-year increase of about 750%; long-term borrowings increased from 2.65 billion yuan to 12.82 billion yuan, up approximately 384%; non-current liabilities due within one year reached 355 million yuan, far higher than 53.59 million yuan in 2024.

Under these combined effects, the company’s asset-liability ratio rose from 32.38% in 2023 to 42.86% in 2025. Additionally, the company increased R&D investment, which reached 288 million yuan in 2025, up 58.33% from 182 million yuan in 2024.

Source: Announcement

Fourth, growth slowed in the fourth quarter, with future performance to be observed.

Interface News notes that in the fourth quarter of 2025, Dajin Heavy Industry’s growth slowed. Revenue growth for the quarter was 7.12% year-on-year, and net profit growth was 12.59%, both significantly lower than the first three quarters.

In response, Dajin Heavy Industry explained that each quarter’s project confirmations vary, leading to performance fluctuations. “Due to factors such as project delivery product structure, there are phased reasonable fluctuations in performance. The company strictly follows accounting standards to recognize revenue, and overall operations remain steady and orderly,” the company also stated. Based on current order shipment plans and production schedules, the company expects high shipment levels in the first quarter.