Sanxiang Technology's net profit last year increased by over 70% year-on-year, with continuous improvement in profitability

Staff Reporter Liu Zhao

On February 28, Qingdao Sanxiang Technology Co., Ltd. (hereinafter referred to as “Sanxiang Technology”) disclosed its 2025 annual performance forecast. The announcement shows that the company achieved operating revenue of 1.134 billion yuan in 2025, a year-on-year increase of 17.39%; net profit attributable to shareholders of the listed company was 110 million yuan, up 71.71% year-on-year; net profit after deducting non-recurring gains and losses was 102 million yuan, an increase of 65.46%. Based on steady revenue growth, the company’s profit margins have increased significantly, and profitability has been notably enhanced.

Regarding Sanxiang Technology’s 2025 performance forecast, industry insiders told Securities Daily that last year’s operating results demonstrated strong operational resilience and profit elasticity. The growth in main engine customer business provided stable support for revenue, while a significant reduction in intermediary fees greatly improved the expense structure, making profit growth much higher than revenue growth. Meanwhile, the substantial increase in net profit excluding non-recurring gains indicates that profit improvement mainly stems from enhanced quality of core business operations. With no change in share capital, earnings per share also increased in tandem, reflecting the company’s internal growth-driven performance expansion.

Sanxiang Technology was founded in 2003. It is a high-tech company integrating research, development, production, sales, and service of rubber hoses and assemblies for automobiles and motorcycles. The company was listed on the Beijing Stock Exchange on December 30, 2022. Its products feature unique processes and technical formulations, with technological standards leading in the domestic industry. The products are not only supplied to many domestic automobile and motorcycle manufacturers but are also exported to North America, Europe, Southeast Asia, and other regions.

A relevant person from Sanxiang Technology told Securities Daily that last year’s revenue growth was mainly driven by increased main engine customer business and active expansion into foreign OEM and after-sales markets. In the context of intensified industry competition, the growth in main engine customer business indicates an increased share of supporting orders within the core customer system, enhancing order stability. Additionally, expanding overseas OEM and after-sales markets helps diversify risks associated with single-market fluctuations and improves overall revenue structure.

Furthermore, the rapid growth in net profit compared to revenue indicates strong performance elasticity. Sanxiang Technology pointed out in its announcement that profit growth was partly due to increased operating income and partly due to a significant reduction in intermediary fees during the reporting period. Expense optimization improved the period expense ratio, making revenue growth more effectively translate into profit increases.

With no change in share capital, profit growth directly boosted earnings per share. In 2025, the company’s basic earnings per share were 1.13 yuan, up 71.21% from 0.66 yuan in the same period last year. The weighted average return on net assets (excluding non-recurring items) was 14.14%, significantly higher than 9.09% in the previous year; after excluding non-recurring items, it was 13.06%, also higher than 8.70% last year. These indicators show a marked improvement in the company’s capital return level and profit quality.

In terms of assets and equity, as of the end of 2025, the company’s total assets were 1.48 billion yuan, an increase of 4.84% from the beginning of the period; owners’ equity attributable to shareholders was 830 million yuan, up 12.63% year-on-year; net assets per share increased from 7.52 yuan to 8.47 yuan, a rise of 12.63%.

A further statement from Sanxiang Technology’s relevant person indicated that the increase in total assets was mainly due to the addition of new projects during the reporting period, leading to increases in fixed assets and construction in progress; the growth in owners’ equity was driven by profits leading to an increase in undistributed profits. As revenue and profits grow, net assets also expand, providing financial support for subsequent project development and business expansion.

Xing Xing, Chief Economist at Jin Dong Hui Enterprise Management Development (Beijing) Co., Ltd., told Securities Daily that in 2025, Sanxiang Technology achieved steady revenue growth driven by main engine customer business and overseas market expansion; under the combined effects of optimized expense structure and scale effects, profit margins increased more significantly, and capital return levels improved markedly. As new projects are gradually implemented and capacity continues to be released, the company’s future operational performance will need to be further observed in conjunction with the official annual report and industry environment changes.

(Editor: Qiao Chuan Chuan)