Xindong Lianke's 2025 profits to increase by over 30%, entering the aerospace vehicle track with a gross profit margin of 85.77%

Yangtze Business Daily news

Visual China photo

●Yangtze Business Daily reporter Jiang Chuya

High-performance MEMS inertial sensor leader Xindong Lianke (688582.SH) has delivered a high-quality growth performance.

On March 23, Xindong Lianke released its 2025 annual report. The company achieved operating revenue of RMB 524 million, a year-over-year increase of 29.48%; net profit attributable to shareholders was RMB 303 million, a year-over-year increase of 36.56%. In the same period, the company’s net cash flow from operating activities was RMB 313 million, surging 87.96% year over year. Both profitability quality and cash-flow performance improved in sync.

Yangtze Business Daily reporter noted that in 2025, leveraging its technological leadership, Xindong Lianke precisely entered the “aerospace vehicle” segment, achieving a strategic extension from high-end industrial applications to highly promising new areas, with the overall market space fully opening up. The company maintained a high gross margin level of 85.77% throughout the year.

Net cash flow from operating activities up 87.96%

In 2025, Xindong Lianke’s performance continued its strong growth momentum. Key financial indicators improved across the board, demonstrating the hard-core strength of a “little giant” enterprise specializing in niche markets, characterized by specialization, refinement, uniqueness, and innovation.

During the reporting period, the company achieved operating revenue of RMB 524 million, up 29.48% year over year; net profit attributable to shareholders was RMB 303 million, up 36.56%; net profit after non-recurring items was RMB 290 million, up 36.91%; and net cash flow from operating activities was RMB 313 million, up 87.96% year over year. Profitability quality and cash-flow performance improved in sync.

The company maintained a high gross margin of 85.77% for the full year, highlighting the scarcity and pricing power of its high-performance MEMS sensor products.

While sustaining steady growth in performance, Xindong Lianke actively returns value to shareholders. The company plans to use the company’s total share capital of 402 million shares as the base. For every 10 shares, it will distribute a cash dividend of RMB 1.48 (tax included) and total cash dividends of RMB 59.4574 million (tax included). Combined with the interim dividend in the first half of 2025, the total cash dividend for the full year will reach RMB 122 million (tax included), representing 40.20% of net profit attributable to shareholders.

The core drivers behind performance growth stem from optimization of the product matrix and resonance with market demand. By product, the company’s core product, MEMS gyroscopes, remains the revenue pillar. The accelerometer business achieved leapfrog growth, with sales reaching RMB 74.4175 million, up 167.31% year over year. Its share of revenue from principal operations rose to 14.21%, becoming the second growth curve after gyroscopes. Sales of inertial measurement units (IMUs) were RMB 32.0737 million, up 53.36% year over year. Multiple products expanded in volume at the same time, supporting sustained high growth in performance.

Expanding into the “aerospace vehicle” segment

In 2025, three major emerging tracks—low-altitude economy, commercial aerospace, and intelligent driving—entered a period of explosive growth. Leveraging its technological leadership, Xindong Lianke precisely entered the “aerospace vehicle” segment, achieving a strategic extension from high-end industrial applications to highly promising new areas, with the market space fully opening up.

In the low-altitude economy sector, the company became one of the very few domestic suppliers that can provide customers with high-performance MEMS inertial sensors and support applicable airworthiness certifications. It deeply participates in the development and testing of aircraft technical solutions. Relying on the high-reliability and high-precision characteristics of its products, it seized a key component segment of the low-altitude economy. As growth accelerates in low-altitude logistics and commercial manned aircraft, business growth potential continues to be unlocked.

In the commercial aerospace sector, the company provides high-performance components and modules to satellite internet and aerospace supporting enterprises. It is deeply connected with major national projects such as “Star Network.” Benefiting from the explosive growth of the commercial aerospace industry, the scale of orders has been steadily increasing, becoming a new growth point for performance.

In the intelligent driving sector, the company achieved key breakthroughs and has begun bulk supply of MEMS inertial modules to passenger car autonomous driving customers and L4-level unmanned logistics vehicle customers. The products meet the stringent requirements of higher-level autonomous driving for high-precision and high-stability IMUs. As the penetration rate of autonomous driving increases, the company’s car-grade products are expected to continue ramping up in volume.

While expanding into the track, the company has continued to accelerate technological innovation. In 2025, R&D investment reached RMB 123 million, accounting for 23.40% of revenue. High-intensity technology spending lays a solid foundation for long-term development.

As of the end of 2025, the company’s total assets were RMB 2.6B, and net assets attributable to shareholders were RMB 2.53B. The asset-liability ratio remained at a low level, and its ability to withstand risks was outstanding, providing ample funding support for future R&D investment and market expansion.

Editors: ZB