Xinhua Lande 2025 Results: Revenue Rises 24.43%, Swings to RMB1.09 Million Profit, New Controlling Shareholder Secured

Financial Performance For the year ended 31 December 2025, Xinhua Lande reported revenue of RMB230.25 million, up 24.43% year-on-year. Gross profit reached RMB27.14 million, lifting the gross margin to 11.79% from 11.26% a year earlier. A profit attributable to shareholders of RMB1.09 million reversed the prior-year loss of RMB6.51 million, translating into basic EPS of RMB0.21 cents (2024: loss of RMB1.28 cents).

Segment Highlights • Trading of hardware and computer software generated revenue of RMB207.77 million (+25.69%) with a gross margin of 7.89% (2024: 8.73%), delivering segment profit of RMB9.84 million. • Smart city solutions contributed RMB22.48 million (+13.86%) and a gross margin of 47.79% (2024: 32.41%), narrowing the segment loss to RMB1.58 million. • The e-commerce operation solution services segment remained inactive and recorded no revenue.

Cost & Expenses Cost of sales increased to RMB203.11 million (+23.67%). Distribution, administrative and R&D expenses fell 7.08% to RMB20.59 million, reflecting staff optimisation in smart city projects. Finance costs rose to RMB0.92 million (2024: RMB0.68 million). Net impairment losses on receivables and inventories totalled RMB2.62 million, down from RMB5.36 million in 2024.

Balance Sheet & Liquidity Total assets stood at RMB118.87 million, while total liabilities reached RMB70.00 million, resulting in equity of RMB48.87 million. • Cash and cash equivalents increased to RMB25.23 million (2024: RMB15.59 million). • Inventories doubled to RMB13.43 million, reflecting higher hardware and software stock. • Trade and bills receivables decreased to RMB71.58 million, with 96.69% aged under 180 days. • Bank borrowings expanded to RMB34.51 million, partly secured by RMB24.51 million pledged bills. • Current ratio came in at 1.68 (2024: 1.73); gearing ratio (liabilities/total assets) edged up to 58.89% from 56.66%.

Capital & Dividend No dividend was declared for 2025. Registered capital remained at RMB50.65 million, comprising 244.42 million domestic shares and 262.13 million H shares.

Corporate Actions • July 2025: Shanghai Chemcloud–Visionary Technology consortium acquired a 51.01% stake through purchases of domestic and H shares, triggering mandatory unconditional offers and establishing new controlling shareholders. • December 2025: Shareholders approved a name change from “Shenghua Lande Scitech” to “Xinhua Lande Scitech”; Hong Kong registration completed in January 2026. • March 2026 (post-period): The company issued 52.28 million new H shares under a general mandate to fund smart-city upgrades, business expansion and working capital.

Outlook Management will concentrate on: 1) deepening hardware/software trading relationships and pursuing higher-margin customers; 2) expanding smart city solution contracts inside and outside Zhejiang with AI-enabled product upgrades; and 3) evaluating a relaunch of the e-commerce operation solutions segment.

Auditor & Governance HLB Hodgson Impey Cheng Limited agreed the figures in the preliminary results with the audited financial statements. The company complied with the Hong Kong CG Code, save for the combined roles of chairman and CEO.

No material contingent liabilities were reported.