Profitability

Geekplus (2590.HK) announced strong unaudited interim results for H1 2025, with revenue up 31.0% year-over-year to RMB 1.025 billion. Gross profit increased 43.1%, resulting in a gross margin of 35.1%. Adjusted net loss narrowed significantly, and adjusted EBITDA turned positive. New orders rose 30.1% to RMB 1.760 billion. Revenue from outside Mainland China accounted for 79.5% of the total. Geekplus remains the world’s largest warehouse fulfillment robotics solution provider and will focus on embodied intelligence R&D, global expansion, ESG, and talent development.

Huawei Cloud is reportedly undergoing a major restructuring, led by CEO Zhang Ping’an, to prioritize artificial intelligence and achieve profitability by 2025. This involves streamlining departments, focusing on AI-driven solutions (“3+2+1” framework), and scaling back non-core areas. The move follows executive personnel changes and aims to capitalize on the high-growth AI market, although potential workforce adjustments remain undefined. The restructuring marks another turning point after the previous dissolution of the Cloud & Computing Business Group.

Amaze Holdings (AMZE) reported a significant 1134% revenue increase to $0.87M in Q2 2025, fueled by 200M storefront visits and 12M active creators. GMV reached $3.77M with a $50 AOV. Despite growth, the company experienced a $5.0M net loss due to increased SG&A expenses. Management anticipates sequential revenue growth in Q3/Q4 2025 and potential short-term profitability. Strategic partnerships and new platform features aim to solidify long-term success.

XGIMI Technology projects first-half 2025 revenues of RMB 1.626 billion, a 1.63% YoY increase, and a 2062.33% surge in net profit to RMB 88.66 million. This profitability boost is attributed to R&D focus, improved supply chain efficiency, and cost control. During the period, XGIMI launched new projector models and expanded globally through retail channels in Europe, North America, Japan, and Australia. The company also extends its projection technology into automotive applications, including in-car rear projection systems.

Fortune China’s 2025 China 500 list reveals State Grid as the revenue leader at $548.4 billion, followed by PetroChina and Sinopec. ICBC is the most profitable. The top ten most profitable include TSMC, Tencent, Alibaba, and Ping An. Tencent’s net profit surged over 65% in 2024. These ten companies accounted for 41% of the total profits of all listed companies.

China’s automotive market is witnessing public spats between executives amid intense competition. Analysts suggest this shift reflects unsustainable price wars and squeezed margins. Car manufacturers are publicly criticizing rivals to shape perception, protect brand image, and maintain consumer interest. An industry expert underscores the importance of maintaining at least 20% gross profit margins for ethical and long-term business viability, crucial in the current cutthroat environment.

111, Inc. reported Q1 2025 results, highlighting maintained quarterly operational profitability and positive cash flow. Net revenues remained flat at RMB3.5 billion, while operating expenses saw a 4.8% decrease, and operating expenses as a percentage of revenues decreased by 30 basis points YoY.

Xiaomi CEO Lei Jun stated the company will avoid a price war, focusing on sustainable growth in the automotive sector. Xiaomi aims for a long-term hardware profit margin capped at 5% and plans to produce its own automotive chips. The YU7 standard edition pricing will be decided just before launch. The company projects its automotive, chip, and other new ventures will achieve profitability in Q3 or Q4, supported by strong Q1 performance and significant investment in intelligent driving system R&D.

Agora Inc. (API) reported a second consecutive quarter of GAAP profitability, achieving a net income of $0.4 million in Q1 2025. While overall revenue grew slightly to $33.3 million, the Agora segment saw a 17.7% increase. The company maintains a strong cash position of $388 million. For Q2 2025, Agora projects revenue between $33-35 million.