Baoxin Software's non-recurring net profit in 2025 declines by 44.84%, while R&D investment defies the trend and rises to 12.98%.

Can AI · Can increased R&D investment reverse the company’s declining profitability trend?

Blue Whale News, April 1st: On March 30th, Baoxin Software disclosed its 2025 annual report. Data shows that the company achieved a net profit of 1.21B yuan after deducting non-recurring gains and losses for the year, a year-on-year decrease of 44.84%, with a larger decline than the 42.40% drop in net profit attributable to shareholders.

Quarterly, the fourth quarter’s net profit after non-recurring gains and losses was 188 million yuan, accounting for only 15.51% of the full-year non-recurring net profit, the lowest single-quarter level among the four quarters. Compared to the combined 1.02B yuan of non-recurring net profit in the first three quarters, Q4’s contribution was significantly lower, indicating higher profit pressure in that quarter than the annual average.

The total non-recurring gains and losses amounted to 92.78 million yuan, including government subsidies of 57.39 million yuan and a reversal of receivables impairment provisions of 33.81 million yuan, with these two items accounting for 98.30%. Excluding these two items, the profit generated from the company’s main business was even more significantly reduced.

Notably, the net cash flow from operating activities was 2.15B yuan, a year-on-year increase of 28.48%, showing a clear contrast to the sharp decline in net profit. The improvement in this indicator mainly stems from strengthened receivables management and optimized project payment collection pace, with operating cash inflows growing faster than expenses.

The company’s revenue structure shows further consolidation. Revenue from software development and engineering services increased to 65.30%, while outsourcing service revenue accounted for 34.32%, together making up 99.62% of total revenue. In comparison, traditional low-margin, labor-intensive businesses continue to shrink, indicating a clear path for business model upgrades.

In terms of geographic distribution, domestic revenue accounts for 96.59%, while overseas revenue is only 3.28%. Although new overseas projects such as the Ximangdu Iron Mine Smart Mine project were added during the reporting period, the overall market layout still heavily relies on the domestic market.

The full-year R&D expenses totaled 1.42B yuan, accounting for 12.98% of revenue; the number of R&D personnel was 2,017, making up 33.28% of the total employees.