Fuxing China Group (AWK) H2 2025 earnings summary

Executive summary

• FY2025 revenue fell 9% YoY to RMB672.3 million, while net profit rose to RMB20.5 million from RMB0.9 million.

• Gross profit increased 8.1% to RMB49.5 million; operating cash flow remained positive at RMB44.3 million.

Financial highlights

• Gross profit margin improved to 7.4% from 6.2%, mainly driven by Processing.

• Other income and expenses increased 33% to RMB52.0 million, including a RMB20.2 million disposal gain, RMB10.5 million listing-cost waiver and RMB5.1 million forfeiture of customer advances.

• G&A expenses declined 4% to RMB58.0 million; marketing and distribution expenses rose 10% to RMB13.1 million.

• Finance expenses declined 40% to RMB5.1 million, mainly due to lower short-term borrowings.

Outlook and guidance

• Focus on revenue growth and margin expansion through operational efficiency, automation, digitalisation and increased direct-to-brand sales.

• Plans include product innovation, quality improvement, stronger customer relationships, disciplined cost control and capital-structure optimisation.