Cixing Co., Ltd. defies the trend with increasing market share by 2025; overseas expansion and intelligent transformation are key to breaking through.

On March 30, Ciystar Holdings (rights protection) (300307) released its 2025 annual report. During the reporting period, the company achieved operating revenue of 1.95B yuan; net profit attributable to shareholders was 97.3873 million yuan. Although performance declined due to fluctuations in the macroeconomic environment and international trade policy, the company’s market share in the knitting machine segment increased to 32% against the trend, up 4 percentage points year over year, further strengthening its position as an industry leader.

Industry cyclical adjustment combined with trade-policy disruption creates short-term pressure on earnings

In 2025, global trade and economic order encountered setbacks, and China’s textile industry faced cyclical and structural contradictions, with insufficient momentum for growth in effective demand. According to statistics from the Textile Machinery Association, the horizontal knitting machine industry’s total annual sales were about 100k units, down 33% year over year, and the industry as a whole stepped into a period of deep adjustment. Ciystar Holdings’ main knitting machine business recorded sales of 32,459 units, down 11.89% year over year. Although it could not avoid the downward pressure facing the industry, the decline was clearly smaller than the industry average, showing strong risk-resilience capability.

The report states that the decline in performance was mainly affected by instability in international trade policies. Customers were in a sluggish state in the first three quarters, leading to a year-over-year decrease of 9.47% in knitting machine business revenue to 100k yuan. At the same time, competition based on product homogenization intensified within the industry. The market penetration rate of upgraded products represented by direct-bilateral system computer knitting machines is approaching saturation. Product prices faced pressure, further compressing profit margins.

Overseas markets become a bright spot for growth, as the globalization strategy accelerates

Against the backdrop of pressure in the domestic market, Ciystar Holdings’ overseas business performed strongly, becoming the biggest highlight of the annual report. In 2025, the company’s overseas export volume of knitting machines reached more than 3,700 units, up about 35%. The company seized opportunities related to the Belt and Road Initiative and achieved significant growth in sales in Southeast Asian countries such as Cambodia and Vietnam, successfully withstanding the risk of volatility in a single market.

It is reported that Ciystar Holdings has built a dual-circulation development pattern of “deep cultivation domestically and breakthroughs overseas.” Domestically, the company has established frontier technology research institutes in industrial clusters such as Dongguan, Guangdong; Tongxiang, Zhejiang; Haiyang, Shandong; and Qinghe, Hebei, to provide customers with end-to-end solutions from design to production. Overseas, relying on the technical advantages of its Swiss R&D center, the company is focusing on developing high-end knitting equipment markets in Europe, North America, and other regions, promoting a transformation of product output from “equipment export” to comprehensive output of “technology + products + services.”

R&D investment continues to increase, as intelligent transformation builds a moat

Faced with industry technological upgrades, Ciystar Holdings adheres to an innovation-driven strategy. In 2025, the company’s research and development expenses were 45.6799 million yuan, and it focused on advancing R&D of high-end products such as first-line forming computer knitting machines and 3D integrated-forming motion knitting machines. As the industry’s first enterprise to launch a domestic first unit of first-line forming products, Ciystar Holdings has a complete product matrix covering different specifications from 3 needles to 18 needles, which can meet demand in traditional knitting, sports, medical, and other emerging application areas.

The company has built a “domestic and overseas dual R&D teams” coordination mechanism: the domestic team delves deeply into industry processes, while the Swiss team provides cutting-edge technology exploration. As of the end of the reporting period, the company had 166 invention patents and 97 utility model patents, and is a national standard drafting unit in the computer knitting machine industry. With the implementation of policies such as the “Implementation Plan for the Digital Transformation of the Textile Industry,” intelligent products are expected to enter a new round of equipment upgrade cycle.

Accelerating the layout in emerging fields, cultivating a second growth curve

Based on consolidating its advantages in traditional knitting equipment, Ciystar Holdings is actively expanding high-value emerging application scenarios. Relying on 3D integrated-forming technology, the company deeply connects with the supply chain of high-end sportswear brands, while also working on areas such as automotive textiles (car interior trims), medical textiles (medical orthopedic bandages), and smart wearable devices (conductive yarns, sensing textiles).

Looking ahead to 2026, Ciystar Holdings said that as the competitive landscape in the computer knitting machine industry speeds up reshaping, industry concentration will continue to rise. The company will continue to advance the divestment of non-core businesses, concentrate resources to strengthen its main business, and improve operational efficiency through lean production and digital management, striving to achieve high-quality development throughout the year.

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