Anfu Technology's Q3 single-quarter revenue was 1.181 billion yuan, down 7.89% year-on-year, while net profit increased 19.5% year-on-year.

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Benefiting from an increase in gross profit margin and a decrease in financial expenses, Anfu Technology achieved substantial growth in net profit in Q3, despite a year-on-year decrease in revenue for the quarter. In the first three quarters, the company's revenue increased slightly by 0.39% year-on-year, with net profit achieving double-digit high growth.

On October 28, Anfu Technology released its third-quarter financial report. Key financial data are as follows:

In the third quarter of 2025, the company had main revenue of 1.181 billion yuan, down 7.89% year-on-year; net profit attributable to shareholders was 67.88 million yuan, up 19.5% year-on-year; net profit excluding non-recurring items was 65.26 million yuan, up 15.83% year-on-year.In the first three quarters of 2025, main revenue was 3.608 billion yuan, up 0.39% year-on-year; net profit attributable to shareholders was 174 million yuan, up 16.32% year-on-year; net profit excluding non-recurring items was 168 million yuan, up 13.92% year-on-year.Net cash flow from operating activities in the first three quarters was 810 million yuan, up 14.80% year-on-yearIn the third quarter of 2025, the company's gross profit margin was 51.66%, up 4.43 percentage points year-on-year; net profit margin was 21.15%, up 2.25 percentage points year-on-year.Owners’ equity attributable to shareholders was 3.045 billion yuan, up 65.89% since the beginning of the year, mainly due to equity acquisitions and supporting financing.

Q3 Profitability Improvement

The financial report shows that despite pressure on Anfu Technology's revenue, its profitability improved. On a single-quarter basis, Q3 revenue decreased by nearly 8% year-on-year, but net profit achieved a 15.83% increase. In the first three quarters, revenue increased slightly by nearly 0.4% year-on-year, while net profit grew nearly 14% year-on-year.

An increase in gross profit margin, expense control, and a decrease in financial expenses are the main drivers of profit improvement. Operating costs in the first three quarters were 1.826 billion yuan, down 1.33% year-on-year, a greater decrease than the growth in revenue, lifting gross profit margin to 49.39% from 48.51% a year ago.

A more significant improvement came from financial expenses. During the reporting period, financial expenses were 18.84 million yuan, down 40.19% year-on-year; the company explained this as "replacing loans with lower interest rates and repaying part of bank borrowings."

Net Profit Excluding Non-Recurring Items Grows Slower than Attributable Net Profit

It is noteworthy that in the first three quarters, the company's net profit excluding non-recurring items attributable to shareholders was 168 million yuan, up 13.92% year-on-year, lower than the 16.32% growth of attributable net profit. Non-recurring profit and loss in the first three quarters totaled only 6.4 million yuan, accounting for less than 4% of the attributable net profit, mainly from government subsidies of 13.4 million yuan and investment income of 8.69 million yuan.

In Q3 single quarter, net profit excluding non-recurring items attributable to shareholders was 65.26 million yuan, up 15.83% year-on-year, lower than the 19.50% growth rate of attributable net profit, with profit growth relying more on the decrease of minority shareholders' equity brought by equity structure adjustment.

The weighted average return on equity was 8.77%, up only 0.16 percentage points year-on-year; Q3 single-quarter ROE was 3.05%, down 0.51 percentage points year-on-year.

In terms of stock price, Anfu Technology closed down 1.28% on Tuesday, at 38.5 yuan/share, nearly 20% lower than the annual high of 47.94 yuan/share.

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