Hui Ju Technology (2481.HK) 2025 Annual Report Analysis: Short-term Revenue Fluctuations Do Not Change Operational Resilience; Leading Clean Heating Provider's Profitability Quality Further Enhanced

On March 20, Hui Ju Technology (2481.HK) released its 2025 financial report. Against the backdrop of the deep transformation of the domestic heating industry toward cleaner and smarter solutions, the company delivered an impressive annual performance with high profitability quality. The company achieved operating revenue of 1.506 billion yuan, a decrease of 8.6% year-over-year; net profit attributable to shareholders of 170 million yuan, up 3.7%; gross profit of 440 million yuan, down 3.4% year-over-year; gross profit margin of 29.5%, an increase of 1.64 percentage points; and net profit margin of 11.3%, up 1.3 percentage points.

Looking beyond revenue figures, the core resilience of Hui Ju Technology’s main business and the continuous optimization of profitability quality are the key highlights of the 2025 performance.

During the reporting period, the decline in revenue was mainly due to the temporary reduction in low-margin engineering projects such as pipeline network construction and heat exchange station construction. This is a short-term phenomenon caused by business structure adjustments and does not reflect changes in core operational capabilities. In stark contrast, the company’s core heating services performed well, generating approximately 1.353 billion yuan in revenue, a 3.9% increase; the total actual heating service area reached 52.6 million square meters, a 5.2% increase compared to 2024; the number of heating service customers increased to 409,400, a 2.1% rise year-over-year. The steady expansion of residential and non-residential customer groups demonstrates the strong market stickiness and growth potential of the core business.

On the profitability side, the company demonstrated strong cyclical resistance, with net profit attributable to shareholders of 170 million yuan in 2025, a 3.7% increase; gross profit margin and net profit margin have maintained an upward trend for three consecutive years, significantly outperforming comparable industry peers. The growth in profitability is mainly driven by the decreasing proportion of low-margin engineering services, while the growth in connection and heating areas has led to a significant increase in high-margin revenue from connection fees, heating charges, and price subsidies. The business structure continues to shift toward higher profitability, laying a solid foundation for the company’s long-term development.

In the context of the industry’s deepening pursuit of the “dual carbon” goals, Hui Ju Technology has become a benchmark enterprise through the commercialization of clean energy technologies and outstanding ESG performance. This is supported by the comprehensive empowerment from its parent company, Shuangliang Group, in the field of clean energy.

As a leading cross-provincial heating service provider nationwide, Hui Ju Technology leverages Shuangliang Group’s technological accumulation and industrial layout in photovoltaic, hydrogen energy, energy storage, zero-carbon parks, and other fields. The company has mastered various new energy heating technologies such as solar energy, geothermal energy, and industrial waste heat recovery, building a three-dimensional energy collection network. It has successfully implemented multiple clean energy demonstration projects, including combined heat and power and deep geothermal heating, forming a multi-energy complementary green heating model that aligns perfectly with the energy development goals and key tasks of the 14th Five-Year Plan.

In terms of ESG development, the company won the “2025 China ESG Digital Empowerment Brand” award in 2025. Its subsidiary Hui Ju Technology Heating (Zhengzhou) Co., Ltd. was recognized as an “Excellent Public Utility Enterprise.” Several subsidiaries, including Shanxi Xixian Shuangliang and Shuozhou City Recycled Energy Heating, have received honors such as May 1st Labor Awards and National Civilized Units. From digital empowerment, social responsibility, to operational management, Hui Ju Technology has established a new benchmark for ESG construction in the clean heating industry. Meanwhile, in northern heating markets, the company actively promotes the EMC model, becoming an important partner for energy companies to achieve environmental goals, fully benefiting from national tax incentives, fiscal rewards, and other policy dividends, achieving a win-win situation for economic and environmental benefits.

Technological empowerment is central to Hui Ju Technology’s efforts to improve operational efficiency and achieve energy saving and carbon reduction. The continuous upgrade of the smart heating platform has reshaped the company’s operational management system. With years of digital development, the “Hui Ju Smart Heating Cloud Platform” integrates cutting-edge technologies such as artificial intelligence, cloud computing, big data, and the Internet of Things, enabling full-chain monitoring and analysis of source, network, station, and user data, along with standardized processing of massive data. In 2025, the company further clarified its core direction for digital and AI development, aiming to enhance intelligence in production management, billing, and customer service, while exploring AI applications in business analysis, risk identification, and decision support for internal management. Through technological innovation, the company continues to reduce costs and increase efficiency, driving the transformation of heating operations toward refined and intelligent management, making smart heating a core competitive advantage.

Looking ahead to 2026, Hui Ju Technology will enter a new stage of “digital and intelligent construction + market expansion” driven by dual engines. Relying on deep collaboration with Shuangliang Group, the company will unlock broad growth potential. In digital development, it will continue to upgrade the smart heating platform, deepen AI applications across the entire industry chain, and further improve system efficiency and energy management. In market expansion, the company will focus on heating, steam supply, and integrated energy services, increasing efforts to develop key regions and major clients, and advancing high-quality project reserves and implementation. Under strict risk control, the company aims to steadily expand its business scale. Meanwhile, the domestic heating market continues to grow, with an expected total heating service area of 14.5 billion square meters and a construction market size of 70.8 billion yuan by 2027, providing ample industry space for Hui Ju Technology’s market development.

As a leader in high-profit clean heating, Hui Ju Technology has moved beyond traditional heating business models, forming a core competitive edge of “clean heating technology + smart operation platform + ESG value empowerment.” In the future, with ongoing digitalization and steady market expansion, Hui Ju Technology will fully benefit from the industry’s clean and intelligent transformation, continuously creating long-term value for shareholders, and achieving leapfrog growth in the trillion-yuan clean heating market.