Selling batteries generated a net profit of 200 million. Anfu Technology responds exclusively to the high executive salary of 30 million, questioning whether it includes performance-based cash incentives.

Image source: Visual China

Blue Whale News, March 10th (Reporter Xu Xiaochun) On the evening of March 9th, Anfu Technology (603031.SH) disclosed its 2025 annual report. The company achieved an operating revenue of approximately 4.775 billion yuan, a year-on-year increase of 2.94%, and a net profit attributable to shareholders of about 226 million yuan, up 34.38% year-on-year.

According to the annual report, despite a net profit of over 200 million yuan, last year’s combined annual salaries of three vice presidents reaching 30 million yuan drew significant market attention. Anfu Technology’s office staff told Blue Whale News that these senior executives mainly oversee sales of the Nanfeng battery market, and their high salaries, including performance bonuses, are linked to performance growth.

While rewarding these executives generously, Anfu Technology also shows considerable generosity to shareholders, once again distributing cash dividends. On January 7th this year, the company announced profit distribution for the first three quarters of 2025, paying a cash dividend of 0.12 yuan per share, totaling approximately 30.93 million yuan. According to the annual report, the company will again distribute a cash dividend of 1.2 yuan per 10 shares and convert 4.5 shares from capital reserve. The total cash distribution from these two rounds amounts to 61.87 million yuan.

Nanfeng Battery’s annual sales reach 3.9 billion units, with vice presidents’ million-yuan salaries attracting attention

Anfu Technology’s core asset is the “Nanfeng” battery brand IP. Currently, the company’s product lineup includes alkaline batteries, No. 1 gas stove batteries, button batteries, carbon batteries, power banks, lithium rechargeable batteries suitable for various high-voltage, high-current, high-power appliances, and small lithium-ion batteries.

From sales data, alkaline batteries mainly based on Nanfeng brand reached a sales volume of 3.906 billion units, a year-on-year increase of 17.22%. The sales revenue from alkaline batteries was about 3.944 billion yuan, accounting for 82.6% of the company’s total revenue, with a sales increase of 10.02% compared to the previous year.

The annual report shows that last year’s revenue growth was mainly driven by overseas markets, where gross profit margin slightly declined by 2.85% in 2025, but revenue surged to 1.14 billion yuan, a 43.92% increase. Anfu Technology’s office staff told Blue Whale News that last year, a new alkaline battery production line for Nanfeng was put into operation, mainly supplying overseas markets, which significantly increased revenue.

In contrast, domestic markets are more profitable. In 2025, Nanfeng Battery launched products like Nanfeng JuNeng Ring 5th generation, and the company’s domestic gross profit margin increased by 4.84% to 59.54%, surpassing the overseas market by 42 percentage points.

Despite the significant improvement in performance, Anfu Technology’s high executive salaries have sparked market discussion. Data shows that in 2025, the total compensation of key management personnel reached 41.1024 million yuan, a 27.78% increase. Among them, Director and Executive Vice President Liu Ronghai’s annual salary was 14.3946 million yuan; Vice Presidents Liang Hongying and Wang Xiaofei earned 6.5917 million yuan and 8.3243 million yuan respectively. The combined salary of these three reached about 29.3106 million yuan, accounting for over 70% of all key executives’ compensation.

In comparison, CATL, a leading lithium battery company, reported a net profit of 72.201 billion yuan in 2025, a 42.28% increase, while the total salary of its 13 core executives and directors was only 24.503 million yuan.

Notably, according to Wind data, based on the top three executive salaries in 2024, these three executives ranked 17th among all A-share listed companies. With further salary increases in 2025, their combined compensation of 29.3106 million yuan is expected to rise to around 12th place, with companies ranked higher having market values dozens of times larger than Anfu Technology.

Anfu Technology’s office staff told Blue Whale News that these three executives are responsible for Nanfeng battery sales, with 30 to 40 years of experience at Nanfeng. Their high salaries mainly include performance bonuses. The staff further explained that when the company performs well, it tends to incentivize core management with equity or cash rewards. Recently, the company has focused on restructuring Nanfeng battery assets and has not implemented large-scale equity incentive plans, instead providing cash incentives, which these executives can then use to purchase company stock on the secondary market.

The annual report shows that in 2025, Liu Ronghai, Liang Hongying, and Wang Xiaofei increased their holdings by 163,000, 50,000, and 27,000 shares respectively. As of the close on March 10th, Anfu Technology’s stock price was 55.89 yuan per share. Based on this and the executives’ share purchase announcements, their returns from these increases in 2025 exceeded 110%.

On January 8th this year, Liu Ronghai, Liang Hongying, and Wang Xiaofei announced plans to further increase their holdings within six months through centralized bidding, with a total planned investment of between 11.9 million and 13.4 million yuan.

Yuan Yonggang continues strategic layout, investing over 1.8 billion yuan to increase Nanfeng Battery equity stake

The actual controllers behind Anfu Technology are Yuan Yonggang and Wang Wenjuan. Yuan Yonggang’s business empire includes Anfu Technology, Dongshan Precision (002384.SZ), and Lanjing Optoelectronics (300862.SZ). Dongshan Precision is the largest, with a market value of about 197.9 billion yuan. In the first three quarters of 2025, Dongshan Precision and Lanjing Optoelectronics achieved revenues of approximately 27.071 billion yuan and 272 million yuan, with net profits attributable to shareholders of about 1.223 billion yuan and a loss of 59.0228 million yuan respectively.

Around 2019, Yuan Yonggang acquired control of listed company Andeli through equity transfer, gradually integrating Nanfeng Battery assets into listed companies. In June 2022, “Andeli” officially renamed itself “Anfu Technology,” and Nanfeng Battery was listed via a curve listing. As of 2025, Anfu Technology continues to expand its holdings in Nanfeng Battery.

Currently, the main company for Nanfeng Battery is Fujian Nanping Nanfeng Battery Co., Ltd. Its controlling shareholder is Yajin Technology, a company listed on the New Third Board, holding 82.18% of its shares. Earlier, Anfu Technology held 62.25% of Anfu Energy, which in turn held 51% of Yajin Technology, thus controlling and consolidating Nanfeng Battery.

Nanfeng Battery has long been a leader in China’s alkaline battery industry. In 2025, Anfu Technology again pushed forward asset restructuring to increase its stake in this “cash cow” asset.

Last year, Anfu Technology acquired the remaining 37.75% of Anfu Energy for 1.455 billion yuan, gaining full control. In November of the same year, the company, using Anfu Energy as the vehicle, completed an offer to buy 5% of Yajin Technology’s shares for about 376 million yuan. After the transaction, Anfu Technology increased its indirect stake in Nanfeng Battery from 26.09% to 46.02%, with an investment of approximately 1.831 billion yuan, thereby increasing the attributable net profit to shareholders during the period.

During this process, Yuan Yonggang’s related company Jiuge Zhonglan and others made performance commitments for core targets like Nanfeng Power, promising that from 2025 to 2027, Nanfeng Battery’s net profits would not be less than 914 million yuan, 950 million yuan, and 982 million yuan respectively. In 2025, Nanfeng Battery’s net profit excluding non-recurring gains was about 938 million yuan, with a performance completion rate of 102.57%.

Additionally, in 2025, Anfu Technology is exploring investments in chip and semiconductor industries. At the end of last year, the company strategically invested in Suzhou Yilanjin Micro Semiconductor Technology Co., Ltd. (“Suzhou Yilanjin Micro”), which owns a silicon photonic heterogenous integration thin-film niobate lithium niobate pilot line, with active products already sampled to leading industry clients. Its high-density passive product line has achieved mass production, supporting top optical module manufacturers.

In response to investor questions, Anfu Technology stated that its semiconductor layout aims to build a “power” + “light” development pattern, fostering a second growth curve.