Qian Xun Technology Narrows Annual Loss Despite Surging Revenue and Rising Impairments

Ruicheng (China) Media Group Limited ( (HK:1640) ) has shared an announcement.

Qian Xun Technology Limited, a Cayman Islands-incorporated technology company listed in Hong Kong, operates under IFRS Accounting Standards and derives revenue from activities with high cost of sales and exposure to inventory and financial asset risks. The Group’s business model results in modest gross profits relative to revenue and includes finance costs that affect overall profitability.

For the year ended 31 December 2025, the company reported revenue of RMB1.49 billion, more than quadruple the prior year, while gross profit roughly doubled to RMB46.3 million, highlighting strong top-line expansion but persistent margin pressure. Despite a sharp reduction in net loss to RMB12.5 million from RMB123.7 million, profitability was held back by higher finance costs, inventory impairment, and substantial loss allowances on financial assets, though the narrower loss and improved basic loss per share indicate a meaningful recovery trajectory for shareholders.

Other income increased markedly and selling and administrative expenses grew as the company scaled, while an exchange gain on foreign operations slightly offset the loss, resulting in a smaller comprehensive loss of RMB10.8 million. The figures suggest that Qian Xun Technology is transitioning from heavy losses toward breakeven, with stakeholders likely to focus on the sustainability of revenue growth, the management of credit and inventory risk, and the company’s ability to further improve margins and reduce impairments in coming periods.

The most recent analyst rating on (HK:1640) stock is a Hold with a HK$3.50 price target. To see the full list of analyst forecasts on Ruicheng (China) Media Group Limited stock, see the HK:1640 Stock Forecast page.

More about Ruicheng (China) Media Group Limited

Qian Xun Technology Limited is a Cayman Islands-incorporated company listed in Hong Kong under stock code 1640. It operates in the technology sector and reports its financial results under IFRS Accounting Standards, focusing on revenue-generating activities that involve significant cost of revenue and financial assets subject to loss allowances.

The Group’s operations generate substantial sales volumes but with relatively thin gross margins, indicating a business model with high direct costs. Its capital structure involves finance costs and exposure to inventory and credit risks, reflecting a balance sheet that includes inventories and financial assets sensitive to impairment and provisioning trends.

Average Trading Volume: 337,745

Technical Sentiment Signal: Sell

Current Market Cap: HK$1.37B

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