Top Group's net profit declines again after 5 years, with the chairman and his son having cashed out nearly 900 million yuan at high levels

Top Group (SH601689, stock price 71.6 yuan, market capitalization 124.429 billion yuan) released an announcement on the evening of February 11th regarding its operating performance forecast for 2025. The company expects to achieve revenue of 28.75 billion to 30.35 billion yuan, an increase of 8.08% to 14.1% year-over-year; net profit attributable to shareholders of the listed company of 2.6 billion to 2.9 billion yuan, a decrease of 3.35% to 13.35% year-over-year; and net profit after deducting non-recurring gains and losses of 2.42 billion to 2.72 billion yuan, a decrease of 0.30% to 11.30% year-over-year. Based on this, Top Group will experience a situation of “increased revenue without increased profit” in 2025.

Data shows that 31 institutions have a consensus forecast of 2.97453 billion yuan for the net profit attributable to parent company shareholders in 2025. Therefore, according to the company’s predicted range of 2.6 billion to 2.9 billion yuan, it falls short of institutional expectations.

Company: Two main reasons caused profit to fall short of expectations

Top Group stated in the announcement that the above performance forecast is based on preliminary calculations by the company’s finance department and has not been audited by a certified public accountant. The specific and accurate financial data will be based on the company’s official 2025 annual report, but there are no significant uncertainties affecting the accuracy of this performance forecast.

According to Top Group’s Q3 2025 report, the company achieved a net profit attributable to parent company shareholders of approximately 1.967 billion yuan in the first three quarters of 2025. Based on the full-year forecast range of 2.6 billion to 2.9 billion yuan, Top Group is expected to realize a net profit of 633 million to 933 million yuan in the fourth quarter of 2025, representing a quarter-over-quarter change of -5% to 38%.

Regarding the reasons for the year-over-year increase in revenue during the reporting period, Top Group stated that it is due to the broad recognition of its Tier 0.5 cooperation model by domestic and international clients, deep involvement in clients’ early-stage R&D processes, and providing integrated solutions. Meanwhile, the company’s customer base continues to expand, the structure is constantly optimized, per-vehicle supporting amounts steadily increase, and customer stickiness and cooperation depth are significantly enhanced.

Additionally, the company is deepening its product platform layout, with nine major series of products continuously demonstrating competitiveness. Core technologies are being reused across fields, the product matrix is continuously enriched, and a synergistic growth effect has been formed, strongly supporting stable growth in sales revenue.

Thanks to the effective implementation of these strategies, the company’s revenue has steadily increased. However, profit growth has not met expectations due to multiple factors.

In this regard, Top Group stated that on one hand, fluctuations in raw material prices and intensified market competition have led to a decline in gross profit margin, compounded by the complex and changing international situation further increasing operational uncertainties; on the other hand, overseas new capacity is still in the ramp-up stage, with high fixed costs such as depreciation and amortization. Under the influence of multiple factors, the company’s profit has not achieved the expected growth.

The last time annual net profit attributable to parent company shareholders declined year-over-year was in 2019

Data shows that 31 institutions’ forecasted minimum for Top Group’s 2025 net profit attributable to parent shareholders is 2.74 billion yuan, with a maximum of about 3.614 billion yuan, and a consensus forecast of about 2.975 billion yuan. Therefore, the company’s predicted range of 2.6 billion to 2.9 billion yuan falls short of institutional expectations.

Furthermore, the last time Top Group experienced a year-over-year decline in annual net profit attributable to parent shareholders was in 2019.

According to Top Group’s H1 2025 report, the company’s main business involves the research, production, and sales of automotive parts. Its main products include NVH damping systems, interior and exterior trim systems, lightweight vehicle bodies, intelligent cockpit components, thermal management systems, chassis systems, air suspension systems, and intelligent driving systems—eight major business segments. Major customers include domestic and international smart electric vehicle companies and traditional OEMs.

Additionally, establishing an electric drive business unit to enter the embodied intelligent robot sector is an important strategic move for the company. Embodied intelligent robots are a field with broad development prospects, and expanding into robotics can help the company create new growth trajectories.

A reporter from Daily Economic News noted that benefiting from the humanoid robot concept, Top Group’s stock price experienced a significant rally in 2025—Wind data shows that from July 10 to September 18, 2025, Top Group’s stock price surged by 85.72% over 51 trading days.

However, during this period of rapid stock price increase (August 29 to September 10), Top Group’s chairman Wu Jianshu, his son and vice chairman Wu Haonian, along with Ningbo Zhuyue Investment Management Co., Ltd. and Ningbo Paisia Real Estate Co., Ltd., acting in concert, collectively sold 13.43 million shares of Top Group, accounting for approximately 0.7728% of the company’s total share capital, cashing out about 884 million yuan.