Beijing Xunzhong Communication Technology Co., Ltd. (Xunzhong) reported FY 2025 revenue of RMB 903.91 million, down 1.49% year on year (YoY), but lifted profitability through cost discipline and a strategic pivot toward higher-margin segments.

Net profit attributable to shareholders rose 36.37% to RMB 73.02 million, driving basic EPS up 16.95% to RMB 0.69. Total profit increased 63.50% to RMB 84.04 million as impairment charges reversed into a credit gain of RMB 9.27 million, compared with a loss of RMB 46.00 million a year earlier.

Gross profit slipped 12.64% to RMB 177.45 million, yet the comprehensive gross margin held broadly stable at 19.63% (2024: 22.13%), reflecting the Company’s move away from low-margin businesses and tighter cost control. Selling expenses contracted 21.07% to RMB 15.47 million, offsetting higher R&D (+8.10% to RMB 41.16 million) and administrative (+5.45% to RMB 34.05 million) spend.

Segment performance underscored Xunzhong’s business realignment: • Cloud-based Communications Services generated RMB 844.21 million, down 2.52% as basic SMS, voice and digital rights demand eased. • Smart Communications Solutions revenue surged 247.67% to RMB 48.47 million, buoyed by AI-driven contact-center and data-analytics offerings. • Other Communications Services and Accessories declined 70.13% to RMB 11.24 million following an intentional scale-back of low-margin activities.

Operating cash flow remained negative at RMB –178.34 million (2024: –114.03 million) as payments for goods outpaced collections. Financing inflows of RMB 378.40 million—primarily from the July 2025 Hong Kong IPO—drove period-end cash and equivalents to RMB 207.21 million versus RMB 7.29 million a year earlier.

Total assets expanded to RMB 1.91 billion (2024: RMB 1.48 billion), while total liabilities edged up to RMB 655.64 million. The gearing ratio improved to 34.42% from 43.41% on strengthened equity following the capital raise.

The Board proposed no dividend for FY 2025, prioritizing cash for growth initiatives in AI-enabled communications and international expansion.

Xunzhong’s FY 2025 results highlight the company’s transition toward higher-value smart solutions, solid margin management, and a materially stronger balance sheet post-listing, positioning it to pursue further AI integration and overseas market opportunities in 2026.