Juxin Technology 2025 Annual Report Analysis: Non-GAAP Net Profit Surges by 144.73%, Operating Cash Flow Increases by 64.45%

Rapid Expansion of Revenue Scale

During the reporting period, Gesi Technology achieved operating revenue of 922,378,714.01 yuan, representing a year-over-year increase of 41.50% from 651,875,446.08 yuan in 2024. The revenue scale has maintained double-digit high growth for two consecutive years. Judging by quarterly performance, the company’s revenue shows the characteristic of “rising quarter by quarter and then declining.” Revenue for the first three quarters was 191.95 million yuan, 257.16 million yuan, and 273.02 million yuan, respectively, while it fell to 200.24 million yuan in the fourth quarter. Full-year revenue growth was mainly driven by the rapid growth of on-device AI processor chips, low-latency high-fidelity wireless audio products, and the increase in the share of Bluetooth speaker SoC chips among leading customers.

A Significant Improvement in Profitability

Net Profit and Non-recurring Net Profit

In 2025, the net profit attributable to shareholders of listed companies reached 204,586,027.73 yuan, up 91.95% year over year from 106,582,933.82 yuan in 2024. The net profit after deducting non-recurring gains and losses was 192,241,590.36 yuan, up significantly by 144.73% from 78,553,920.97 yuan in 2024. The growth rate of non-recurring-adjusted net profit is materially higher than the revenue growth rate, indicating that improvements in the company’s product mix have driven a substantial enhancement in profitability. For non-recurring gains and losses, the total for 2025 was 12,344,437.37 yuan, a significant decrease from 28,029,012.85 yuan in 2024, further strengthening the sustainability of earnings.

Earnings Per Share Indicators

Benefiting from the substantial growth in net profit, the company’s basic earnings per share rose from 0.61 yuan/share in 2024 to 1.18 yuan/share, increasing by 93.44% year over year. Basic earnings per share after deducting non-recurring gains and losses increased from 0.45 yuan/share to 1.11 yuan/share, surging by 146.67% year over year. The growth rate of earnings per share is broadly aligned with the growth rate of net profit, and the unit earnings attributable to shareholders’ holdings increased significantly.

Cost Control Shows Scale Effects

Overall Cost Situation

During the reporting period, the company’s operating revenue growth rate (41.50%) significantly outpaced the cost growth rate, and the scale effect began to emerge. In terms of R&D expenditure as a proportion of operating revenue, the ratio in 2025 was 26.13%, down 6.87 percentage points from 33.00% in 2024. With absolute R&D spending still increasing, the decline in the ratio reflects the dilution effect of revenue growth on costs.

Selling Expenses

In 2025, the company did not disclose a detailed breakdown of selling expense related items. However, considering the background of the company’s advancement of a brand-customer strategy and an increase in the share of leading customers, selling expense spending is expected to be concentrated on expanding deep cooperation with customers and market promotion. In addition, as the scale of revenue increases, the selling expense rate is expected to improve to some extent.

Administrative Expenses

As for administrative expenses, the company did not disclose specific amounts. Nonetheless, given the high growth rate in revenue, the growth rate of administrative expenses is expected to be lower than that of revenue. Management efficiency is continuing to improve, supporting the improvement in profitability.

Financial Expenses

The company did not separately disclose a breakdown of financial expenses. However, based on the cash flow situation, the company’s operating cash flow in 2025 was strong. The net amount of financing cash flow was negative, indicating that the company’s financial structure is solid, and financial expenses are expected to remain at a relatively low level.

R&D Expenses and Staff Situation

The company continues to invest intensively in R&D. In 2025, R&D spending as a proportion of revenue was 26.13%. Although this was lower than the previous year, it still remains at a relatively high level in the industry. The company did not disclose the specific amount of R&D expenses. However, given the situation of R&D personnel and its technology roadmap, R&D investment is mainly used for core areas such as low-power, high-computing-power chip architecture, AI audio algorithms, and private wireless communication technologies, as well as research and development of cutting-edge technologies such as in-memory computing.

Regarding R&D personnel, the company did not disclose the specific number of people or compensation data. But as a technology-driven enterprise, the team of core technical personnel is stable, and continuous investment by R&D personnel is the key support for the company to maintain technological competitiveness. During the reporting period, the rapid ramp-up of the company’s on-device AI processor chip is precisely evidence of the outcomes of R&D investment.

Cash Flow Performance Is Steady and Robust

Net Cash Flow from Operating Activities

In 2025, the net cash flow generated from operating activities was 253,505,239.32 yuan, up 64.45% year over year from 154,157,199.28 yuan in 2024. The growth rate was significantly higher than the revenue growth rate. This was mainly because the company’s operating revenue increased substantially, payments received for goods sold increased year over year, and improvements in the profitability level enhanced cash flow quality. Judging by quarterly data, the operating cash flows in the second and third quarters were 105.82 million yuan and 87.64 million yuan, respectively, making them the primary periods contributing to the full-year cash flow.

Net Cash Flow from Investing Activities

The company did not disclose specific amounts for net cash flow from investing activities. However, based on changes in items measured at fair value, the ending balance of trading financial assets in 2025 was 50,036.23 million yuan, an increase of 13,513.87 million yuan from the beginning of the period, with an impact on profit for the period of 1,258.83 million yuan. The ending balance of other non-current financial assets was 9,454.60 million yuan, a decrease of 937.02 million yuan from the beginning of the period, with an impact on profit for the period of -405.23 million yuan. This indicates that the company’s investing activities are mainly cash management and strategic investments, and overall remains steady.

Net Cash Flow from Financing Activities

The company did not disclose specific amounts for net cash flow from financing activities. However, considering that in 2025 the company implemented two cash dividends (1 yuan per 10 shares + 2.6 yuan per 10 shares) and repurchased 588,036 shares (paying 23,135,626.47 yuan), the net cash flow from financing activities is expected to be negative. The company covers dividends and share repurchases using operating cash flow, without the need for external financing, and its financial structure is extremely sound.

Key Risk Disclosures

Risk of Intensifying Industry Competition

In the field of on-device AI chips and intelligent audio chips, the number of participants has increased in recent years. International giants and emerging domestic enterprises are both stepping up their deployments. If the company is unable to continuously maintain technological leadership, if product iteration slows down, or if market promotion does not meet expectations, it may lead to a decline in product market share and affect profitability.

Risk of Technological Iteration and R&D Failure

The semiconductor industry has a fast pace of technological iteration. There are risks that frontier technologies such as in-memory computing that the company is laying out may experience R&D failure or not achieve technology commercialization as expected. At the same time, if the company cannot promptly follow industry technology trends such as AI model lightweighting and upgrades to wireless communication protocols, the product competitiveness may decline.

Risk of High Customer Concentration

The company adopts a brand-customer strategy. If the needs of its core leading customers change, if orders decrease, or if the cooperation relationship experiences adverse changes, it will have a significant impact on the company’s revenue and profits.

Supply Chain Risks

The company operates under a Fabless model, and wafer manufacturing as well as packaging and testing rely on external suppliers. If suppliers face capacity constraints, raise prices, or if factors such as geopolitical issues or natural disasters affect supply chain stability, it will lead to higher production costs and delays in product delivery.

Compensation of Executives and Supervisors

During the reporting period, the total pre-tax remuneration of core executives such as Chairman Zhou Zhengyu, General Manager, Deputy General Manager, and Chief Financial Officer was not disclosed separately as specific amounts. However, the company disclosed the remuneration of core technical personnel was not disclosed due to commercial confidentiality. Overall, the company’s executive compensation system is expected to be linked to the company’s performance. With the company’s performance growing significantly in 2025, executive compensation is also expected to increase accordingly.

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