Zhixin Group Holding Limited released its audited results for the year ended 31 December 2025, reporting a mixed performance across its three operating segments—ready-mixed concrete, precast concrete components (PC components) and iron-ore tailings recycling with eco-friendly bricks.
Revenue and Profitability • Group revenue slipped 4.8% year-on-year to RMB 552.80 million, driven by weaker contributions from ready-mixed concrete (-11.7%) and a near-cessation of PC component sales (-96.4%), partly offset by an 8.2% rise in tailings recycling and brick sales. • Gross profit declined 28.6% to RMB 38.81 million, trimming the overall gross margin to 7.0% (FY2024: 9.4%). • The annual net loss attributable to shareholders narrowed to RMB 58.53 million, an improvement of 22.2% from the prior year’s RMB 75.20 million, aided by lower impairment charges and finance costs.
Segment Highlights • Ready-mixed concrete recorded a RMB 26.37 million gross loss (FY2024: RMB 4.40 million loss) amid intensified competition and a subdued property market in Xiamen. • PC components revenue fell to RMB 0.50 million as production remained suspended; gross loss narrowed to RMB 1.39 million owing to lower operating costs. • Tailings recycling and eco-friendly bricks remained the key profit engine, generating RMB 66.57 million gross profit on RMB 284.95 million revenue, though margin erosion was evident versus FY2024.
Cost and Expense Dynamics • Cost of sales eased 2.3% to RMB 513.99 million. • Selling expenses dropped 64.5% to RMB 4.92 million, reflecting reduced PC component activity. • Administrative expenses were broadly flat at RMB 81.89 million. • Net impairment losses on financial assets contracted to RMB 3.66 million (FY2024: RMB 16.93 million). • Net finance costs decreased 22.9% to RMB 14.04 million as the average borrowing rate fell to 4.4%.
Cash Flow and Balance Sheet • Cash and cash equivalents rose to RMB 42.88 million (FY2024: RMB 19.04 million). • Net current liabilities widened to RMB 92.13 million. • Total borrowings expanded to RMB 502.17 million, shifting the gearing ratio to 60% (FY2024: 48%). • Capital expenditure reached RMB 184.42 million, mainly for tailings recycling capacity, with outstanding capital commitments of RMB 367.50 million. • Assets pledged against borrowings amounted to RMB 479.53 million, including property, plant and equipment, right-of-use assets and receivables.
Strategic Developments • The Board reiterated focus on expanding solid-waste resource utilisation businesses in Hainan and Longyan, where additional land and raw-material rights were secured post-year-end. • Remaining IPO proceeds of HK$5.40 million, originally allocated for PC component capacity, have been re-designated to repay bank borrowings by December 2026. • In January 2026, Zhixin Group agreed to issue 149.60 million new shares at HK$0.68 each, with completion on 20 March 2026.
Outlook Management anticipates continued pressure on the Xiamen concrete businesses but expects the tailings recycling and eco-friendly bricks operations to underpin future growth, supported by significant raw-material reserves and ongoing capacity expansion initiatives.
Comments