Yuxin Technology 2025 Annual Report Analysis: Revenue Down 8.46%, Net Operating Cash Flow Drops 33.95%

Core Profitability Indicators Grow Against the Trend

In 2025, Uxin Technology’s operating revenue was RMB 3.623 billion, down 8.46% year over year from RMB 3.958 billion in 2024, with revenue declining for two consecutive years. However, profits grew against the trend: net profit attributable to shareholders of listed companies was RMB 432 million, up 13.69% year over year; non-recurring-item adjusted net profit was RMB 415 million, up 18.77% year over year; basic earnings per share (EPS) was RMB 0.63 per share, up 14.55% year over year; non-recurring-item adjusted EPS was approximately RMB 0.59 per share, with a year-over-year increase of more than 18%.

Dual-Track Cost Control and R&D Investment

During the reporting period, the company’s consolidated expense ratio improved significantly, driving a 3.08 percentage-point year-over-year increase in gross margin to 32.10%. Sales expenses were RMB 271 million, down 16.07% year over year, mainly due to refined management of marketing promotion and business travel expenses; administrative expenses were RMB 262 million, down 5.28% year over year, as administrative costs were compressed by improving organizational efficiency; financial expenses were -RMB 16.56 million, with a 115.29% reduction in losses year over year, mainly due to increased interest income and improved foreign-exchange gains.

The company continued to step up R&D investment, with full-year R&D expenses of RMB 366 million, accounting for 10.09% of operating revenue, staying at 10% or above for five consecutive years. The company has established an AI Research Institute, bringing in top experts in AI + financial technology, while also training internal core teams to master large-model technologies. The R&D team size further expanded; by the end of the reporting period, software copyrights increased to 842 items, and the number of patents increased to 71 items, forming an AI R&D system with “technology + scenarios + computing power” as a three-in-one framework.

Cash Flow Under Pressure; Overseas Business Becomes a New Support

In 2025, net cash flow from operating activities was RMB 621 million, down 33.95% year over year, mainly due to a contraction in revenue scale and a lengthening of cash collection cycles for certain projects. Net cash flow from investing activities was -RMB 101.88 million, down by RMB 213 million year over year, mainly used for building an AI computing power cluster and planning overseas market development; net cash flow from financing activities was -RMB 236.89 million, with an additional outflow of RMB 124 million year over year, due to the company’s continued dividend payments and repayment of part of its debts.

Overseas business has become a new growth driver. Full-year operating revenue from foreign-capital banks and overseas customers was RMB 58.28 million. The company successfully expanded into the European market, completed the launch of a data platform for the London branch of a certain state-owned bank, achieving the first large-scale deployment of a domestically developed data platform in overseas regulatory environments. In addition, a digital currency project of a bank overseas was put into production smoothly and entered the regulatory sandbox verification stage.

Executive Compensation and Risk Disclosures

During the reporting period, the chairman, Hong Weidong, had total pre-tax compensation of RMB 1.5867 million; the general manager, Xue Jianfeng, had total pre-tax compensation of RMB 1.5632 million; the average pre-tax compensation for the team of vice general managers was approximately RMB 1.28 million; the CFO, Dai Shiping, had pre-tax compensation of RMB 1.1245 million. The compensation level is on par with leading technology companies in the industry, matching the company’s profit growth and the pace of advancing its strategy.

The company’s core risks include: (1) intensifying global competition in financial technology; overseas market expansion may face challenges in localization adaptation and regulatory barriers; (2) AI technology implementation not meeting expectations—there are technical iteration risks in the core system’s AI-native transformation and the deployment of agent applications; (3) pressure from business transformation in the 2.0 era of digital RMB—requiring R&D investment and market education costs for new technologies such as smart contracts and programmable payments; (4) the risk of loss of core technical personnel—given the fierce competition for talent in the AI field, it may affect the stability of the R&D team.

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Responsible editor: Xiao Lang Kuai Bao