Langxin Technology 2025 Annual Report Analysis: Net profit attributable to parent company turns profitable with a 141.94% increase; net cash flow from financing activities drops by 374.19%

Core Profitability Indicator Analysis

Operating Revenue Edges Up Slightly, Business Structure Diverges

In 2025, the company achieved operating revenue of RMB 4.517 billion, up only 0.84% year over year, with a significantly slower growth rate compared with prior years. By segment, it breaks down as follows:

• Energy Digitalization Business revenue was RMB 2.107 billion, down 1.88% year over year, mainly due to fluctuations in the power grid investment schedule;
• Energy Internet Business delivered strong performance, with revenue of RMB 1.977 billion, up 9.56% year over year. Among this, the newly launched electric-vehicle charging platform users of “Xin Dientu” exceeded 27 million. Annual charging volume grew by about 30%, becoming the core driver of growth;
• Internet TV Business revenue was RMB 433 million, down sharply by 17.94% year over year, due to the complete divestiture of the set-top box business, with noticeable pains from business transformation.

Net Profit Attributable to the Parent Turns to Profit, Non-GAAP Net Profit Improves in Tandem

During the reporting period, the company achieved net profit attributable to shareholders of the listed company of RMB 105 million, up 141.94% year over year, successfully turning losses into profits; non-GAAP net profit after excluding non-recurring gains and losses was RMB 79.1783 million, up 128.48% year over year. The improvement in profitability mainly benefited from:

1. Enhanced profitability in the Energy Internet business, with scale effects from businesses such as Xin Dientu and virtual power plants gradually emerging;
2. A year-on-year decrease in asset impairment losses. The company recognized impairment provisions of RMB 167 million in the current period, which was RMB 186 million less than the previous year;
3. Non-recurring gains and losses contributed RMB 258 million, mainly including government subsidies of RMB 35.0452 million.

Earnings Per Share Turn Positive, Profit Quality Improves

Basic earnings per share were RMB 0.10 per share, and non-GAAP earnings per share were RMB 0.07 per share, both turning losses into profit compared with -RMB 0.23 per share last year. The weighted average return on net assets improved from -3.47% last year to 1.63%, reflecting a significant restoration of profitability.

Expense Control and R&D Investment

Optimized Expense Structure, Control Effect Becomes Evident

In 2025, the company’s total period expenses were RMB 1.679 billion, down 12.4% year over year. The results of expense control were significant:

• Selling expenses were RMB 766 million, down 5.64% year over year, mainly due to the shrinking of the Internet TV business and a reduction in marketing and promotion expenses;
• Administrative expenses were RMB 395 million, down sharply by 29.86% year over year, achieved by lowering operating costs through organizational structure optimization and digitalized management;
• Finance expenses were -RMB 378.2 thousand, up significantly by 98.46% year over year, mainly due to a reduction in capitalized interest and a decline in interest income. Interest income in the current period was RMB 37.3656 million, down RMB 6.1405 million from the previous year;
• R&D expenses were RMB 520 million, down slightly by 2.04% year over year, while still maintaining a high level of investment intensity. R&D investment as a percentage of operating revenue reached 11.67%.

R&D Personnel Structure Adjustment, Technology Focused on Energy AI

By the end of 2025, the company had 2,995 R&D personnel, down 4.80% year over year. However, the personnel structure continued to be optimized:

• R&D personnel with master’s degree or above were 427, increasing their share to 14.26%, up 33.02% year over year;
• The share of R&D personnel aged above 40 increased from 6.14% last year to 14.39%, raising the proportion of senior technical talent;
• Core R&D projects focused on the Energy AI field. “Langxin Nine Works AI Energy Large Model” achieved commercialized applications in scenarios such as power load forecasting and virtual power plant dispatch. It also won bids for benchmark projects such as the intelligent integrated energy project for the Shenyang Sino-German high-end equipment manufacturing industrial park, among others.

Cash Flow and Capital Operations

Operating Cash Flow Dips Slightly, but Cash-Building Capability Remains Strong

Net cash flow from operating activities in 2025 was RMB 478 million, down 13.63% year over year, mainly due to slower collection of accounts receivable. Operating-related receivables decreased by RMB 475 million in the current period, a substantial reduction from RMB 1.082 billion in the prior year. However, overall, operating cash flow still remained a net inflow, and the business’s cash-generating capability stayed stable.

Investment Cash Flow Net Inflow Narrows, Positioning for Emerging Businesses

Net cash flow from investing activities was -RMB 408 million, up 42.81% year over year, with the scale of net cash outflow narrowing. Cash paid for investments in the current period was RMB 966 million, mainly for industrial investments in areas including Energy Internet and AI technology. This included establishing subsidiaries such as Langxin Digital Energy Technology (Wuhan) Co., Ltd., and positioning for emerging tracks such as virtual power plants and computing-power and electricity coordination.

Financing Cash Flow Turns to Substantial Net Outflow, Debt Servicing Pressure Emerges

Net cash flow from financing activities was -RMB 639 million, down sharply by 374.19% year over year. It shifted from a net inflow of RMB 233 million in the previous year to a net outflow. The main reason was that in the current period the company paid cash to repay debts of RMB 960 million, up significantly from RMB 347 million last year. Meanwhile, after completing the acquisition of assets through issuing shares to purchase assets, financing needs decreased. At the end of the period, the company’s asset-liability ratio was 29.39%. Although at a relatively low level, the balance of short-term borrowings was RMB 637 million, down from RMB 362 million last year. Long-term borrowings were RMB 645 million, up 36.05% year over year, indicating a change in the debt structure.

Risk Factors Analysis

Industry Policy and Market Competition Risks

• The progress of electricity market-oriented reform and the schedule of building new power systems involve uncertainty, which may affect the company’s ability to secure orders for its energy digitalization business;
• Competition in the Energy Internet sector is intensifying. Xin Dientu’s platform faces competition for market share from other charging operators, and the virtual power plant business needs to respond to competition from power grid enterprises and traditional energy enterprises.

Technical R&D and Talent Risks

• AI technology iterates quickly. If the company cannot continue to invest in R&D and achieve technological deployment, it may lead to the loss of its technological leading advantage;
• Competition for high-end technical talent is fierce. Loss of core R&D personnel may affect the company’s technical innovation capabilities.

Business Transformation and Integration Risks

• The transformation of the Internet TV business is still underway. Nurturing new businesses requires some time, and in the short term may create pressure on performance;
• After acquiring 10% equity interest in Bangdao Technology, the company needs to further integrate resources to achieve business synergy. The effectiveness of integration involves uncertainty.

Compensation for the Board, Supervisors, and Senior Management

During the reporting period, the total pre-tax remuneration paid by the company to its directors, supervisors, and senior management was RMB 7.3061 million. This includes:

• Chairman Xu Changjun: RMB 720 thousand pre-tax, unchanged from the previous year;
• General Manager Peng Zhiping: RMB 713.8 thousand pre-tax;
• Vice General Managers Weng Chaowei, Hou Limin, and Wang Shenyong: each RMB 720 thousand pre-tax;
• Financial Controller Lu Qingfang: RMB 1.00 million pre-tax, the highest compensation among senior executives, mainly because she simultaneously undertakes multiple management responsibilities.

Overall, in 2025 Langxin Technology successfully turned losses into profits. The Energy Internet business maintained good growth momentum, and expense control results were significant. However, issues such as slower operating revenue growth and net outflow in financing cash flow still need attention. Going forward, the company needs to continue focusing on the “AI + Energy” strategy, deepen integration between technology and business, and accelerate business transformation to address challenges arising from industry competition and policy changes.

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