XJ ELECTRICS (02619) Issues Profit Warning, Anticipates 2025 Net Profit Between RMB 50-53 Million

Stock News
Mar 13

XJ ELECTRICS (02619) announced that the group expects its net profit for the fiscal year ending December 31, 2025, to be in the range of approximately RMB 50 million to RMB 53 million. This represents a decrease of about 62.3% to 64.4% compared to the net profit of approximately RMB 140 million for the fiscal year ending December 31, 2024. The decline in the group's net profit for the 2025 fiscal year is primarily attributable to the combined impact of the following factors: In 2025, overall demand in the traditional small household appliance market in the United States weakened, influenced by factors such as increased uncertainty in the global trade environment and the escalation of US tariff policies. According to data released by the General Administration of Customs of China, the export value of Chinese household appliances in 2025 was approximately RMB 688.85 billion, a year-on-year decrease of 3.3%. Consequently, the group's total revenue for 2025 declined. The overseas production bases established by the company in Indonesia and Thailand commenced operations progressively in 2025. As production capacity is still in a ramp-up phase and local supply chains are not yet fully developed, comprehensive costs have increased, which has negatively impacted the group's net profit for 2025. In the long term, achieving mass production at these overseas bases is expected to enhance supply chain stability and optimize the company's global production layout. Changes in the product mix during 2025 also had a negative effect on the overall gross profit margin. Furthermore, the company recorded a foreign exchange loss in 2025 due to currency fluctuations, compared to a foreign exchange gain in 2024, which also adversely affected the net profit for the current period.

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