Longci Technology's revenue increased by 10.18% to 1.29B yuan, while operating cash flow decreased by 46.06% year-on-year.

Blue Whale News, April 1—On April 1, Longci Technology released its 2025 annual report. For the full year, the company’s operating revenue reached RMB 1.29B, up 10.18% year over year; net profit attributable to shareholders was RMB 168 million, up 51.71% year over year; and non-recurring profit and loss-adjusted net profit was RMB 91.9835 million, down 6.76% year over year. Gross margin increased by 0.93 percentage points to 29.41%, and net profit margin increased by 3.12 percentage points to 12.37%. Net cash flow from operating activities was RMB 105.3391 million, down 46.06% year over year.

By quarter, in the fourth quarter, single-quarter non-recurring profit and loss-adjusted net profit was -RMB 26.2086 million, which was the only quarter throughout the year to record a non-recurring adjusted loss; meanwhile, net profit attributable to shareholders in the same period was still RMB 35.1726 million, further highlighting a weakening in the quality of earnings for the period.

In terms of business structure, the revenue contribution of the magnetic materials business reached 83.70%, while the revenue contribution of commutators and other businesses was 10.15%. Together, the two accounted for a further increased share of revenue, and the product structure continued to shift toward high-gross-margin permanent magnet materials.

The domestic market revenue accounted for 57.54%, and overseas market revenue accounted for 42.46%. The share of overseas revenue has been raised compared with the earlier period, indicating an acceleration in outward-facing development.

In 2025, the company’s R&D investment was RMB 65.2192 million, down slightly by 0.03% year over year. However, the number of R&D personnel increased to 276, up 11.29%, and the proportion of R&D expenses to revenue remained stable at 5.06%. The optimization of personnel structure, together with coordinated efforts in production line technological upgrade investment, supported product upgrading and cost reduction while improving efficiency.

Regarding dividends, the company implemented a profit distribution plan of RMB 2.00 in cash dividends for every 10 shares (tax included). The total cash dividends distributed were RMB 23.1517 million.