Projection in the cold winter, the joys and worries of XGIMI Technology

Why is AI · XGIMI Technology’s revenue growth reflected in declining cash flow?

21st Century Business Herald Reporter Wu Liyang

Recently, the leading projector company XGIMI Technology released its annual report for fiscal year 2025. The report shows that the company achieved an operating revenue of 19.21M yuan for the year, a year-on-year increase of 1.85%; net profit attributable to the parent company was 143 million yuan, a 19.4% increase.

It is noteworthy that this is the first time XGIMI Technology’s revenue has increased after two consecutive years of decline in 2023 and 2024; however, at the same time, the company’s net cash flow for fiscal year 2025 was -95.0881 million yuan, a year-on-year decrease of 141.30%. The company explained that during this period, B-end business gradually delivered revenue, and influenced by industry customer settlement practices, the sales collection cycle has been extended.

From the overall industry perspective, data from Loto Technology shows that the global projector market continued its downward trend in 2025, with shipments totaling 2.21B units, a decrease of 4.8% year-on-year, and shipments in Mainland China plummeted by 19.4%. The highly pressured market environment has, on one hand, prompted domestic projector leaders like XGIMI to accelerate their overseas expansion, and on the other hand, provided an opportunity for market demand to concentrate among leading companies.

In the domestic market, the projector market size in 2025 has not yet reached a turning point of decline.

XGIMI Technology’s financial report indicates that in 2025, revenue in Mainland China was 5.56M yuan, a decrease of 1.09% year-on-year. Although still in decline, the decrease has significantly narrowed compared to 14.80% in 2024 and 23.07% in 2023.

Data from Loto Technology (RUNTO) shows that in 2025, the shipment volume of projectors in Mainland China was 19.21M units, a 19.4% drop year-on-year; its share in the global market fell below 30%. Factors such as domestic consumer demand being overdrawn, the weakening effect of replacement policies, and a pullback in corporate procurement directly led to a significant contraction in market size.

The demand in China, the world’s largest single market, remains sluggish, causing the overall projector industry to cool down, with global shipments in 2025 totaling 318.8k units, down 4.8% year-on-year.

However, the market decline has also created new development opportunities for industry leaders like XGIMI.

On one hand, the shrinking total market volume has further increased industry concentration. Data from Loto Technology shows that in 2025, the top 10 brands in China’s online smart projector market accounted for 66.5% of sales, up 11.3 percentage points from the previous year.

Specifically, in terms of revenue from segmented products, in 2025, XGIMI’s projector and accessory revenue was 3.188 million yuan, a slight increase of 0.59%; internet operation business revenue was 131 million yuan, down 10.68%; other business revenue was 149 million yuan, a year-on-year increase of 66.65%. The main growth in the company’s core projector business defied the market trend, while the main decline in revenue came from reduced demand for internet operation services.

Additionally, in 2025, XGIMI significantly cut marketing costs, with the company’s annual sales expense ratio at 14.9%, down 2.7 percentage points year-on-year. The number of sales personnel was reduced to 304, more than halving the staff.

On the other hand, the trend of upgrading projectors has increased demand for mid-to-high-end products, to some extent improving the average product price and profitability of leading companies.

Data from Loto Technology shows that in 2025, sales of ultra-high-end projectors priced above 10,000 yuan in China doubled; sales share of laser light source and 4K UHD products increased to 15.9% and 12.1%, respectively.

At the company level, in 2025, XGIMI’s long-focus and ultra-short-focus projector products saw average unit price increases of 4.5% and 22.3% year-on-year; gross profit margins increased by 6.8% and 7.6%, respectively. Coupled with AI applications improving human-computer interaction and image calibration experiences, the upgrade of consumer product structures has helped stabilize and rebound XGIMI’s performance.

To expand its business matrix and seek new growth opportunities, XGIMI previously invested heavily in industry display and automotive optics fields.

According to the financial report, the company’s “Taishan” series of industry display products completed initial deliveries during the reporting period and is gradually building a global dealer network. Its smart cockpit products have been delivered to vehicles and are currently installed in models such as the Wenjie M8, Wenjie M9, Zunjie S800, and Xiangjie S9, becoming an important supply chain partner for leading domestic new energy vehicle companies’ cockpit display solutions.

In addition, XGIMI’s subsidiary Shenzhen Qinglai’s Memomind smart glasses were released at the 2026 CES exhibition.

In 2025, XGIMI’s innovative product sales reached 250 million yuan, a year-on-year increase of 107.9%, mainly driven by rapid growth in automotive business.

However, on the other hand, the expansion of B-end business has also led to issues such as narrowing operating cash flow and surging accounts receivable in the financial report. The doubling of revenue from innovative products is accompanied by a gross profit margin of only 4.45%, a decrease of 26.91 percentage points year-on-year, pulling down the company’s overall gross profit level.

The annual report shows that in 2025, the net cash flow from operating activities was -95.0881 million yuan, a significant decrease of 141.30% year-on-year, turning from positive to negative.

In response, XGIMI explained that this was mainly due to revenue gradually generated from B-end business deliveries during this period, and influenced by industry customer settlement practices, the sales collection cycle has been extended.

Similarly, due to longer accounts receivable periods for B-end business, at the end of 2025, XGIMI’s accounts receivable surged by 84.45%, increasing from 195 million yuan at the end of 2024 to 359 million yuan at the end of 2025.

XGIMI openly stated in its annual report that its automotive business is still in the capacity ramp-up stage, with lower gross profit margins for automotive complete machines and accessories, leading to declines in gross profit margins for innovative and accessory products compared to the previous year.

Notably, just before the release of the annual report, on March 29, XGIMI’s Hong Kong IPO prospectus submitted on September 29, 2025, expired after six months, marking the end of its “A+H” dual-platform listing plan.