Cash Flow Surges 344% Year-Over-Year as Meiri New Materials Expands Across Multiple Business Segments

Recently, Meirui New Materials released its 2025 annual report. Amid the pressure of the macroeconomic environment and the fluctuations in the chemical industry, Meirui New Materials delivered a "resilient yet explosive" performance: annual revenue reached 1.747 billion yuan, an increase of 5.31%; net profit attributable to shareholders was 81.9272 million yuan, up 5.59%. However, what is more noteworthy than these two "5%" figures is the significant restructuring of its operating quality and the deep reshaping of its industrial chain.

The "Miraculous Turnaround" of Cash Flow and the Transition of New and Old Drivers

Looking at the financial statements, the most remarkable highlight is not merely the growth in profit, but the "turning from negative to positive" in operating cash flow. In 2025, the company's net cash flow from operating activities reached 321 million yuan, compared to -131 million yuan in 2024, achieving a year-over-year growth of 343.90%. This significant reversal is often seen as the strongest signal of the recovery of the company's "blood-making" function, indicating that the company not only made a profit, but also actually recovered real cash. This is mainly attributed to the optimization of supply chain management and the improvement in sales collection efficiency, providing solid support for subsequent capacity expansion.

The growth in performance stems from a precise "transition of new and old driving forces." For a long time, Meirui New Materials' performance mainly relied on its polyurethane new materials (TPU) business. In 2025, although this core business faced pressure from falling raw material prices, leading to a 6.47% decline in product prices compared to the previous year, sales volume still increased by 7.27% through a "price for volume" strategy, consolidating its market share. However, the real driver of the performance increase, the "second curve," was the company's newly entered functional chemical raw materials sector. With the completion of the first phase of the polyurethane industrial park in Hebi, Henan, the special diisocyanate (HDI, CHDI, etc.) facilities achieved long-cycle stable operation by the end of the fourth quarter. Revenue from this segment surged from 330,000 yuan in 2024 to 147 million yuan in 2025, representing a staggering 441-fold increase. This "from zero to one" breakthrough not only filled a gap in China's high-end monomer materials but also marked Meirui New Materials' successful breaking of industry ceilings, entering a higher value-added upstream sector.

Source: Meirui New Materials official website

Dual Base Synergy: The Hard Power to Break the "Strangulation" Predicament

2025 is not only a year of performance growth for Meirui New Materials, but also a pivotal year for the expansion of its operational footprint. This year, the company completed its transition from a “midstream material supplier” to an integrated industrial giant spanning “upstream monomers and midstream materials.”

In Hebi, Henan, a 100,000-ton-per-year HDI (hexamethylene diisocyanate) plant has moved beyond mere planning on paper to become a roaring reality. As a core aliphatic isocyanate, HDI has long been monopolized by multinational giants and is a critical "bottleneck" material in high-end coatings and aerospace defense sectors. Meirui New Materials' successful mass production not only achieves import substitution but also grants the company significant pricing power and cost advantages. Meanwhile, the Yantai facility is vigorously advancing its "chain-strengthening" initiatives, with the construction of a 10,000-ton-per-year expandable TPU project and a 30,000-ton-per-year waterborne polyurethane project progressing rapidly. Both projects will directly utilize specialty raw materials produced at the Hebi base, enabling substantial cost reductions through vertical integration and synergies across the industrial chain. This dual-engine strategy—combining monomers and advanced materials—provides Meirui New Materials with a significantly wider profit moat compared to its peers when navigating market volatility.

Technological Breakthrough and Global Vision

While expanding its hard power, the soft power of Merix Materials—research and development, innovation—also bore fruit in 2025. The company's R&D investment for the year exceeded 76 million yuan. Although the absolute value saw a slight adjustment compared to the previous year, the proportion of revenue remained at a high level of 4.38%. These investments were transformed into a series of differentiated products, such as high-temperature resistant PPDI-grade materials and CHDI-based TPU with both high transparency and anti-precipitation performance. These products not only addressed industry pain points but also paved the way for the company to enter high-growth sectors like consumer electronics and high-end automotive interiors.

On the international front, Meiri New Materials has also been continuously advancing. In 2025, the company's overseas sales revenue reached RMB 161 million, an increase of 10.26% year-over-year, outpacing growth in the domestic market. As the quality of specialty products from its Hebi facility has reached world-class standards, Meiri New Materials is gradually transforming from a local manufacturer into a globally competitive materials supplier, with its products rapidly expanding onto the global stage.

Looking Ahead to 2026: From the "Construction Phase" to the "Harvest Phase"

Looking back from the starting point of 2026, Meirui New Materials stands at a critical turning point. If the past few years were a "construction phase," then 2026 will be the true "harvest phase" and "climbing phase."

According to the company's disclosed business plan, the core task for 2026 is clear and well-defined: fully enhancing the capacity utilization and market conversion efficiency of the Hebi, Henan production base. This means the company's highly valuable HDI unit will transition from "trial operation" to "full-capacity production," unleashing its economies of scale comprehensively. Meanwhile, the company will further deepen its "integrated R&D and sales" strategy, leveraging its upstream specialty monomer raw material advantages to accelerate the development of high-performance downstream new materials such as TPU and PUD, thereby capturing a greater share of the high-end market.

Of course, opportunities always come with challenges. The fluctuation of raw material prices, the depreciation pressure after the release of new production capacity, and the increasingly fierce market competition are all challenges that Merui New Materials must face. However, as the 2025 financial report shows, through vertical integration of the industrial chain and continuous technological iteration, Merui New Materials has found a path to high-quality development.

From a single TPU manufacturer, Meri New Materials has transformed into a significant player in the global polyurethane industry chain. The 2025 financial report of Meri New Materials is not only a summary of its performance but also a declaration of its ambition to challenge the global giants in high-performance materials. With the full release of production capacity in 2026, the future of this company deserves more anticipation from the market.