Zhenxin Technology's revenue in 2025 increased by 19.82% year-on-year, turning from profit to loss in the first quarter of 2026

Recently, Zhenxin Technology released its annual and first quarter reports for 2025, stating that the company achieved a revenue of 955 million yuan in 2025, a year-on-year increase of 19.82%. The combined revenue of integrated circuits and Beidou navigation accounted for 82.41%, further concentrated compared to the previous year. The net profit after deducting non recurring expenses in 2025 was 17.022 million yuan, a year-on-year increase of 137.98%, indicating a recovery in the profitability of the main business. The gross profit margin of the integrated circuit business reached 65.62%, an increase of 4.11 percentage points year-on-year; The gross profit margin of Beidou Navigation Integrated Application Business was 54.03%, an increase of 1.12 percentage points year-on-year. In the first quarter of 2026, the company achieved a revenue of 124 million yuan, a year-on-year decrease of 26.62%; The net profit attributable to the parent company was -4078600 yuan, which turned from profit to loss. The net cash flow generated from operating activities was -68.3232 million yuan, indicating cash flow pressure. In the fourth quarter of 2025 and the first quarter of 2026, there will be consecutive losses and a significant year-on-year decline in operating cash flow. Attention should be paid to its ability to continue operating and its payment status. In 2025, sales expenses will increase by 30.21% year-on-year, and financial expenses will increase by 57.91% year-on-year, which will have a certain erosion on profits.