XGIMI(SH:688696) Zheng Quan Shi Bao·2025-09-04 21:31Core Viewpoint - The financial performance of XGIMI Technology heavily relies on government subsidies, raising concerns about its sustainability and profitability in the long term [1][2][3]. Financial Performance - In the first half of 2025, XGIMI Technology reported revenue of 1.626 billion yuan and a net profit of 88 million yuan, with over half of the profit (48.87 million yuan) coming from government subsidies [1]. - Over the past two and a half years, XGIMI's total net profit was 328 million yuan, while government subsidies accounted for 75.82% of this amount, totaling 249 million yuan [2]. - In 2023, XGIMI received over 25 government subsidies, amounting to 112 million yuan, which represented 93% of its annual net profit [2]. Government Subsidies - The Yibin Smart Optoelectronic Industrial Park project received significant government support, with a total of at least 835 million yuan in subsidies, which is over 85% of the project's total investment of approximately 970 million yuan [6][5]. - The project has undergone multiple budget adjustments, with the budget increasing to 965 million yuan by 2021 [4]. Subsidiary Performance - Yibin XGIMI, a wholly-owned subsidiary, generated nearly 1.9 billion yuan in revenue in 2020 and has consistently reported revenues exceeding 3 billion yuan annually since then [8]. - In 2025, Yibin XGIMI's revenue was 1.919 billion yuan, surpassing the consolidated revenue of XGIMI Technology by nearly 300 million yuan [8]. Profitability Concerns - Despite high revenue, Yibin XGIMI has struggled with profitability, reporting a cumulative net profit of only 4 million yuan from 2020 to mid-2025 [9]. - The disparity in profit margins between the subsidiary and the parent company may be attributed to internal pricing strategies and cost allocation practices [10].