X.J. Electrics (Hu Bei) (2619) H1 2025 earnings summary

Executive summary

• H1 2025 revenue fell 11.7% YoY to RMB542.8m and net profit declined 58.2% to RMB25.3m amid lower sales volume, weaker gross margin and higher administrative and finance costs.

• Sales volume fell 15.4% YoY to 9.0m units as U.S. trade-policy uncertainty led downstream customers to delay or moderate orders.

• The 25 June Hong Kong listing raised gross proceeds of HK$195.1m; strategic priorities include overseas production, smart manufacturing and R&D investment.

Financial highlights

• Revenue was RMB542.8m, down 11.7% YoY; cost of sales fell 8.8% to RMB435.2m and gross profit declined 21.7% to RMB107.6m.

• Gross margin was 19.8%, down from 22.4%; profit before tax was RMB30.8m versus RMB70.9m, and net profit was RMB25.3m versus RMB60.5m.

• Other income rose to RMB12.7m from RMB8.8m, including government grants of RMB4.1m versus RMB1.4m; net FX gains fell to RMB4.5m from RMB8.8m.

• Administrative expenses rose 20.9% to RMB55.4m; R&D expenses fell 10.4% to RMB14.7m as active R&D projects declined. Finance costs increased to RMB8.1m from RMB5.6m.

• Operating cash flow was RMB12.0m versus RMB22.1m; investing cash outflow was RMB105.3m and financing cash inflow was RMB208.0m.

Outlook and guidance

• Plans to expand Indonesia production and develop the Thailand base, building a three-base network alongside China to optimize resource allocation and mitigate tariff exposure.

• Huizhou smart-factory plans include advanced automated equipment, smart production lines and manufacturing execution software for real-time production monitoring.

• Plans include a ~6,000 sq.m R&D centre in Qichun and research collaborations with universities and research institutions, including Southern University of Science and Technology.