Cixin Co., Ltd. 2025 revenue of 1.95B yuan, down 12.17% year-on-year, overseas revenue growth unable to offset the overall downturn

Why did the over 60% growth in overseas revenue fail to effectively boost overall performance?

Blue Whale News, April 1 — On March 31, Cixing Co., Ltd. disclosed its 2025 annual report. During the reporting period, the company achieved operating revenue of 1.948 billion yuan, down 12.17% year-on-year. Of this, the revenue from the flat knitting machine business was 1.751 billion yuan, accounting for 89.88% of total revenue, up to 89.88%, down 9.47% year-on-year; revenue from the mobile internet business was 67.2005 million yuan, accounting for 3.45%, with a steep year-on-year drop. Although the gross margin of the flat knitting machine business inched up by 0.11 percentage points to 32.62%, it was still unable to offset the overall downward pressure brought by the contraction of other businesses. Revenue from non-flat-knitting segments such as automated equipment and mobile internet shrank significantly, dragging down total revenue.

From a regional perspective, the domestic market remained the main front, generating revenue of 1.659 billion yuan for the full year, accounting for 85.16%; overseas revenue reached 289 million yuan, up 61.64% year-on-year, with its share rising to 14.84%. Against the backdrop of an overall decline in total revenue, overseas revenue became the only regional segment with positive growth, but its scale is still not enough to reach 15% of total revenue and has not formed effective support. The financial report noted that the decline in flat knitting machine business revenue was mainly driven by uncertainties in international trade policies, with cyclical fluctuations in the industry becoming apparent.

The fourth-quarter performance saw a significant inflection point: quarterly operating revenue was 459 million yuan, while net profit attributable to the parent company and non-recurring net profit were both at a loss—24.2525 million yuan and 27.1686 million yuan, respectively. This was the only loss quarter during the reporting period, and the loss amount exceeded the total profit from the first three quarters. The deterioration in that quarter underscored that operating pressure was concentratedly released toward year-end.

Earnings quality faces pressure. The company recorded non-recurring net profit of 69.0682 million yuan, down 51.33% year-on-year; net profit attributable to the parent company was 37.8203 million yuan, down 65.69% year-on-year. The decline in non-recurring net profit was significantly smaller than that of net profit attributable to the parent company, mainly due to gains from disposal of non-current assets of 12.4265 million yuan and government subsidies of 665.30 million yuan.

Net cash flow from operating activities was 36.55 6 million yuan, down sharply 82.89% year-on-year. The financial report explicitly attributed this to reduced sales revenue, reflecting a clear weakening of the core business’s “cash-generation” ability. In the same period, R&D expenditure was compressed to 45.6799 million yuan, down 24.21% year-on-year; the number of R&D personnel decreased from 308 to 198, a reduction of 35.71%; and R&D expense as a share of revenue fell from 2.72% to 2.34%. Both investment intensity and human resource allocation contracted in sync, showing that the pace of technology investment noticeably slowed.

Regarding dividends, the company will distribute a cash dividend of 0.2 yuan for every 10 shares (tax included), totaling 16.0111 million yuan, with a dividend payout ratio of 100%, based on distributable profits of 88.8753 million yuan.