Benefiting from the improvement in gross margin and the decrease in financial expenses, Anfu Technology achieved significant net profit growth in Q3 despite a year-on-year decline in revenue. In the first three quarters, the company's revenue slightly increased by 0.39% year-on-year, while net profit achieved double-digit high growth.
On October 28, Anfu Technology announced its Q3 financial report. Key financial data is as follows:
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In the third quarter of 2025, the company's main revenue was 1.181 billion yuan, a year-on-year decrease of 7.89%; net profit attributable to the parent company was 67.8827 million yuan, a year-on-year increase of 19.5%; net profit excluding non-recurring items was 65.2593 million yuan, a year-on-year increase of 15.83%.
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In the first three quarters, main revenue was 3.608 billion yuan, a year-on-year increase of 0.39%; net profit attributable to the parent company was 174 million yuan, a year-on-year increase of 16.32%; net profit excluding non-recurring items was 168 million yuan, a year-on-year increase of 13.92%.
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The net sales generated from operating activities in the first three quarters was 810 million yuan, a year-on-year increase of 14.80%.
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In the third quarter of 2025, the company's gross margin was 51.66%, an increase of 4.43 percentage points year-on-year; the net profit margin was 21.15%, an increase of 2.25 percentage points year-on-year.
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Shareholders' equity attributable to the parent company was 3.045 billion yuan, a significant increase of 65.89% compared to the beginning of the year, mainly due to equity acquisitions and supporting financing.
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<h2>Q3 Profitability Improvement</h2>
The financial report shows that although Anfu Technology's revenue is under pressure, profitability has improved. From a quarterly perspective, Q3 revenue decreased by nearly 8% year-on-year, while net profit achieved a growth of 15.83%. In the first three quarters, revenue slightly increased by nearly 0.4% year-on-year, and net profit achieved a year-on-year growth of nearly 14%.
The improvement in gross margin, cost control, and the decrease in financial expenses are the main driving factors for profit improvement. In the first three quarters, operating costs were 1.826 billion yuan, a year-on-year decrease of 1.33%, with the decline greater than the revenue increase, leading to a gross margin increase to 49.39%, compared to 48.51% in the same period last year.
A more significant improvement came from financial expenses. During the reporting period, financial expenses were 18.84 million yuan, a year-on-year decrease of 40.19%. The company explained this as &#34;replacing low-interest loans and repaying part of the bank loans.&#34;
<h2>Net Profit Excluding Non-recurring Items Growth Rate Lagging Behind Net Profit Attributable to Parent Company</h2>
It is worth noting that in the first three quarters, the net profit excluding non-recurring items attributable to the parent company was 168 million yuan, a year-on-year increase of 13.92%, which is lower than the 16.32% increase in net profit attributable to the parent company. The total non-recurring gains and losses in the first three quarters amounted to only 6.4 million yuan, accounting for less than 4% of net profit attributable to the parent company, mainly from government subsidies of 13.4 million yuan and investment income of 8.69 million yuan.
In Q3 alone, the net profit excluding non-recurring items attributable to the parent company was 65.26 million yuan, a year-on-year increase of 15.83%, lower than the 19.50% growth rate of net profit attributable to the parent company, with profit growth relying more on the reduction of minority interests brought about by equity structure adjustments.
The weighted average return on net assets was 8.77%, a year-on-year increase of only 0.16 percentage points; the ROE for Q3 alone was 3.05%, a year-on-year decrease of 0.51 percentage points
In terms of stock price, Anfu Technology closed down 1.28% on Tuesday, at 38.5 yuan per share, nearly 20% lower than the year-to-date high of 47.94 yuan per share.
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Despite the contraction in revenue scale for Anfu Technology in the third quarter, net profit increased by nearly 20% year-on-year during the same period. The improvement in profit was mainly driven by the increase in gross margin, cost control, and a decrease in financial expenses

Anfu Technology's Q3 single-quarter revenue was 1.181 billion yuan, a year-on-year decrease of 7.89%, while net profit increased by 19.5% year-on-year