Operating cash flow collapsed 85.3% to about 30.7 million yuan, from about 209.0 million a year earlier – and it ran the full year, not just the weak back half: first‑half cash flow was only about 9.0 million versus 108.7 million a year earlier, a 91.8% fall while profit still grew. The cause is a receivables blowout – trade receivables jumped to about 365.3 million yuan, roughly 45% higher, against revenue up only 6.6% – and short‑term borrowings roughly doubled to about 209.5 million yuan, swinging us into net debt.
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We are a small transmission maker, and we sit on the hardest part of a robot's joint. We mass-produce all three precision-reducer types - planetary, RV, and harmonic, the strain-wave one - and we build them into integrated reducer-motor-driver modules. Being the only one of our neighbours doing all three, harmonic included, is real; being the smallest name doing it is also real, on the same line. Last year revenue grew about seven percent to just over a billion yuan, but profit fell almost fourteen percent - and closer to twenty once you strip the one-off items - and the sharper problem is cash: operating cash flow fell about eighty-five percent as receivables climbed roughly forty-five. We swung into net debt and pledged assets. Our humanoid-joint models are built and sampling, not booked; that is positioning, not revenue, and we list the industry's timing as our own risk, not just our opportunity.
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The reducer is the robot joint's precision bottleneck - roughly 30-50% of actuator cost, where the actuator is a third to over half the robot. We mass-produce all three types: planetary, RV, harmonic, and we are the smallest name doing it. Harmonic is the differentiator our larger neighbour doesn't lead. We integrate reducer, motor, driver into smart-actuator modules at 37.6% of revenue, sitting at both reducer and actuator layers. The barrier is real: scarce high-precision grinding, specialized metallurgy for flexsplines and cycloidal gears, long qualification cycles.
We are the most humanoid-explicit neighbour — 16 mentions in our filing against zero for one peer — and we have built ZSHF-11 and ZSHD-14 harmonic joints plus dexterous-hand reducers, but they are developed and sampling, not booked revenue. Our reducer slice, 24.2% of sales, remains overwhelmingly industrial robots, and we name no humanoid OEM at primary. We relay a third-party $1B-to-$15B demand frame as attributed, not ours, and we carry humanoid industrialisation falling short as a formal risk on the same page.
FY2025 revenue rose 6.6% to 1,041M yuan, but net profit fell 13.6% to 62.7M, and 20.3% to 46.5M stripped of non-recurring items — the operational core fell faster. ROE slipped to 5.29% from 6.35%. Quarterly profit ran 17.4M, 29.0M, 10.8M, 5.5M; first half up 6.5%, second half collapsed to near-breakeven Q4 (1.9M ex-items on 276M revenue). We are the smallest of our Chinese reducer-layer neighbours, and the marginal name on financial quality: profit declining and accelerating downward on a stable base.
Operating cash flow collapsed 85.3% to ~30.7M yuan from ~209M, and it ran the full year - first half was already ~9M vs ~108.7M, a 91.8% fall while profit still grew. Receivables drove it: trade receivables up ~45% to ~365.3M from ~252.7M on revenue up only 6.6%, as distribution sales rose 27.5% amid industry-wide collection difficulty we flag. Short-term borrowings roughly doubled to ~209.5M, from 6.11% to 11.31% of assets, against ~92.5M cash - we swung into net debt with fixed assets and intangibles pledged. Cash conversion, not headline profit, is the sharper tell.
Q1 2026: revenue up 5.1%, net profit down 36% to 11.1M yuan, 43.2% down ex-items, ROE 0.92%, operating cash flow negative 9.8M yuan. We attribute it to gross-margin compression and rising expenses. Not distress - clean audit, still profitable, founder-controlled, paying dividends - but deteriorating quality on a stable base. Profit fell through 2025 to near-breakeven Q4 and fell again this quarter; cash flow collapsed on the receivables build. Whether margin and collections stabilise or the channel shift keeps stretching cash conversion is the open watch item.