Zhongji Xuchuang: Expected net profit growth of 89.50%-128.17% by 2025

Zhongji Xuchuang announced on January 30th that it is expected to achieve a net profit attributable to shareholders of 9.8 billion to 11.8 billion yuan in 2025, representing a year-on-year increase of 89.50% to 128.17%. During the reporting period, benefiting from strong investments by terminal customers in computing infrastructure, the company’s product shipments grew rapidly, with the proportion of high-speed optical modules continuously increasing. As product solutions are constantly optimized and operational efficiency continues to improve, both the company’s operating revenue and net profit have achieved significant growth compared to the same period last year. During the reporting period, the company recognized share-based payment expenses related to restricted stock incentive plans, employee stock ownership plans, and other matters, resulting in a decrease of approximately 223 million yuan in net profit attributable to shareholders of the listed company. During the reporting period, provisions for inventory impairment were made for potentially stagnant inventory on subsidiaries’ books, and credit impairment losses were recognized for accounts receivable with expected bad debt risks, totaling a reduction of approximately 113 million yuan in net profit attributable to shareholders of the listed company. During the reporting period, due to the continuous decline of the US dollar exchange rate, foreign exchange losses were incurred, leading to a decrease of approximately 270 million yuan in net profit attributable to shareholders of the listed company. During the reporting period, the company recognized investment income and fair value change gains and losses, resulting in an increase of approximately 296 million yuan in net profit attributable to shareholders of the listed company, including about 48 million yuan of investment income recorded as non-recurring gains and losses. The above income mainly comes from investment income recognized by associates using the equity method and fair value change gains and losses on other categories of equity investments.