XJ Electrics (02619) expects a sharp earnings contraction for the financial year ended 31 December 2025. Based on unaudited management accounts, net profit is projected at RMB50.00 million–53.00 million, down 62.3%–64.4% from the RMB140.43 million recorded in 2024.

Management attributes the downturn to four main factors:

• Softening U.S. demand for small home appliances amid heightened trade uncertainty and additional tariffs. China’s overall household-appliance export value slipped 3.3% year on year to RMB688.85 billion in 2025, pressuring the Group’s top line.

• Rising operating costs from newly commissioned overseas plants in Indonesia and Thailand. Both facilities remained in ramp-up mode with incomplete local supply chains, increasing integrated production expenses.

• An unfavourable shift in product mix, which diluted the overall gross profit margin.

• Currency volatility: the company swung from a foreign-exchange gain in 2024 to a loss in 2025, further weighing on earnings.

The figures are preliminary and subject to audit. XJ Electrics plans to release its full 2025 results by end-March 2026 and advises shareholders and prospective investors to exercise caution when trading its shares.