Huaiwei Technology’s revenue and net profit both increased in 2025, with a significant improvement in cash flow and a continued rise in concentration in its core business.

What are the driving factors behind AI · Huawi Technology’s cash flow surge?

Blue Whale News, April 3 — On April 2, Huawi Technology disclosed its 2025 annual report. Data shows that the company achieved an operating revenue of 1.99B yuan in 2025, a year-on-year increase of 7.08%; net profit attributable to shareholders of 275 million yuan, a year-on-year increase of 21.49%; and net profit after deducting non-recurring gains and losses of 250 million yuan, a year-on-year increase of 17.46%.

It is noteworthy that, against the backdrop of simultaneous growth in revenue and profit, the performance in the fourth quarter was particularly outstanding, with operating revenue of 580 million yuan, net profit attributable to shareholders of 71 million yuan, and net profit after deducting non-recurring gains and losses of 57 million yuan, all significantly higher than the average quarterly levels for the entire year.

In 2025, the net cash flow from operating activities reached 350 million yuan, a substantial year-on-year increase of 276.25%, exceeding the non-recurring net profit by 99 million yuan. The gross profit margin increased by 0.90 percentage points to 26.62%.

As the company’s core business, suspension system components accounted for 86.01% of revenue, valve and special-shaped components accounted for 6.96%, and the combined proportion of these two categories further increased, with product structure concentration continuing to strengthen.

Regionally, domestic sales accounted for 94.92%, while exports accounted for 5.08%. The overseas market expansion has not yet achieved substantial breakthroughs, and revenue sources still heavily depend on the domestic market.

The company continues to invest heavily in R&D, with R&D expenses reaching 108 million yuan, a year-on-year increase of 19.92%, accounting for 5.40% of operating revenue; the number of R&D personnel increased by 23.67% to 256 people.

Regarding dividend distribution, the company plans to distribute a cash dividend of 1.00 yuan (including tax) for every 10 shares based on the total share capital of 271 million shares at the end of 2025, totaling 27.0854 million yuan. Additionally, the employee stock ownership plan for 2025 completed the non-trading transfer of 585.1k shares.