Tongfei Co., Ltd.: 2025 Earnings to Rise in Both Quantity and Quality, Explosive Growth in Overseas Markets

On March 31, Tongfei Co., Ltd. released its 2025 annual report. The financial statements show that for the full year, the company achieved total operating revenue of RMB 2.867 billion, up 32.75% year over year; achieved net profit attributable to shareholders of listed companies of RMB 253 million, up 64.84% year over year; and achieved net profit excluding non-recurring gains and losses of RMB 248 million, up 70.09% year over year. The profit growth rate is significantly higher than the revenue growth rate. Overall, the company’s operating scale and profitability level have continued to improve steadily.

I. Resilience in Core Business Growth Stands Out, and Profitability Quality Continues to Improve

The steady growth in the company’s performance in 2025 is primarily supported by continued volume expansion in its power electronics equipment temperature control business, among which energy storage temperature control is the core growth driver for this segment. According to the annual report, the company’s power electronics equipment temperature control products generated revenue of RMB 1.977 billion for the full year, up 36.22%, and their share of total revenue increased to 68.94%, making them the company’s largest source of income. Specifically, in the energy storage temperature control segment, the company’s full-year operating revenue was approximately RMB 1.686 billion, up approximately 43%, serving as the core driver behind the performance growth.

This growth is highly aligned with the global energy storage industry’s deployment timeline. In 2025, the global installed capacity of energy storage continued to expand, while domestic demand for large-scale and industrial/commercial energy storage maintained growth. As a core supplier of energy storage temperature control in China, the company has maintained stable cooperation with domestic leading energy storage system integrators such as CATL, BYD, and Sungrow. Its products cover all scenarios, including centralized energy storage, industrial/commercial energy storage, and high-voltage cascaded direct connection. They fully meet market demand in the industry. Meanwhile, the company’s traditional advantageous business—temperature control products for CNC equipment—continued to operate steadily. For the full year, it achieved revenue of RMB 785 million, up 21.43%, providing a solid base for the company’s performance. The company’s rapid growth in its core business complements the steady performance of its traditional business, forming a more resilient business structure.

The profitability side is also worth paying attention to. In 2025, the growth rate of net profit attributable to the parent company exceeded the revenue growth rate by 32 percentage points. The core reason was the company’s improved cost and expense management capabilities and enhanced profitability efficiency. For the full year, total period expenses were RMB 360 million, up approximately 19%, with a growth rate significantly lower than the revenue growth rate. At the same time, the company’s net cash flow from operating activities reached RMB 189 million, up 70.39%. Compared with the net cash flow from the first three quarters of -RMB 41.2649 million, the full year achieved a turnaround from negative to positive and improved substantially, directly reflecting an improvement in the profitability quality of the company’s main business, as well as continued optimization in its receivables collection capability.

II. Overseas Market Expansion Accelerates, and Globalization Layout Continues to Take Hold

A significant increase in overseas business in the 2025 annual report is an important change at the company’s operating level. The financial report shows that the company’s full-year revenue from within the mainland reached RMB 2.591 billion, up 24.26%, which remains the core foundation of the company’s income. Meanwhile, overseas revenue reached RMB 276 million, up 269.92%. Its share of total revenue rose from less than 4% in 2024 to 9.63%, becoming a new source of growth on the revenue side.

The substantial growth in overseas revenue is highly consistent with the company’s continued push for globalization in 2025. In 2025, the company officially established wholly owned subsidiaries Tongfei Singapore Pte. Ltd. and Tongfei Thailand Co., Ltd., completing a localized layout for the Southeast Asian market. From previously simple product-trade exports, it was upgraded into an end-to-end layout covering local production, localized services, and localized operations. The organizational structure and business model were adjusted in parallel.

From an industry environment perspective, demand for energy storage installed capacity in regions such as Europe, Southeast Asia, and North America continues to grow, and overseas temperature control markets still have significant room for domestic substitution. Leveraging its technical accumulation and customer resources in the energy storage temperature control field, the company gradually entered mainstream overseas supply chain systems. While broadening its revenue sources, it also reduces operating risks arising from volatility in a single market.

III. R&D Investment Increases Steadily; Multi-Segment Layout Optimizes the Business Structure

The core competitiveness in the industrial temperature control industry is directly related to its technical R&D capability. In 2025, the company continued to maintain R&D investment, providing technical support for subsequent business expansion. The annual report shows that the company’s full-year R&D investment reached RMB 122.3872 million, up 24.02%, and its R&D expense as a proportion of operating revenue remained stable at 4.27%. The number of R&D personnel increased from 298 in 2024 to 352 in 2025, up 18.12%, indicating steady expansion of the R&D team.

In terms of R&D direction, the company focuses on core industrial temperature control technologies and extends into multi-scenario, high–added value fields. It has achieved technological breakthroughs in areas such as high-precision temperature control technology, intelligent temperature control systems, and efficient energy-saving liquid-cooled products. Relevant R&D results have gradually been applied across multiple sectors including semiconductor equipment, AI data centers, and hydrogen energy. For example, in the liquid cooling field for data centers, the company has already launched a full set of solutions for both cold-plate and immersion liquid cooling, entering customer supply chains such as KeHua Data, ZTE, and others. In the temperature control field for semiconductor equipment, the company’s high-precision temperature control products have already served domestic semiconductor equipment manufacturers such as Northern Huichuang, SVA MicroTech, and Shanghai Micro Electronics, further optimizing the company’s business structure and expanding the application-scenario boundaries of core industrial temperature control technologies.

Overall, 2025 is a milestone year in the development history of Tongfei Co., Ltd. The high optimism in its core tracks, the breakthrough progress in its globalization layout, and the continued deepening of its technological R&D efforts collectively form the core logic behind the company’s performance growth. At present, the company’s core competitiveness in industrial temperature control has continued to be strengthened. With the ongoing ramp-up in emerging tracks and the gradual realization of its globalization layout, the company’s long-term growth potential remains broad.