China XD Electric Co (601179) Q4 2025 earnings summary

Executive summary

• Revenue reached ¥23.76 billion, up 7.13% year-over-year; net profit attributable to shareholders was ¥1.27 billion, up 20.45% year-over-year.

• Gross margin improved to 22.57%, up 1.86 percentage points year-over-year.

• R&D investment increased by 48.39% to ¥1.20 billion, supporting innovation and new product launches.

• Cash dividend payout ratio was 40.78% of net profit, with total cash dividends of ¥517.7 million.

• Audit opinion was standard unqualified; internal controls also received a clean opinion.

Financial highlights

• Operating income: ¥23.76 billion, up 7.13% year-over-year.

• Net profit attributable to shareholders: ¥1.27 billion, up 20.45% year-over-year.

• Operating cash flow: ¥2.74 billion, down 21.68% year-over-year due to increased procurement and labor payments.

• Basic and diluted EPS: ¥0.25, up 20.42% year-over-year.

• Gross margin: 22.57%, up 1.86 percentage points year-over-year.

• R&D expenses: ¥1.20 billion, up 48.39% year-over-year.

Outlook and guidance

• Industry demand expected to remain robust, driven by grid investment, digitalization, and green energy transition.

• 2026 power consumption in China forecast to reach 11 trillion kWh; grid investment to increase by 40% during the 15th Five-Year Plan.

• Strategic focus on high-voltage transformers, switches, power electronics, smart grids, and international expansion.

• Continued emphasis on R&D, digital transformation, and quality improvement.