Hytera released its 2025 annual report yesterday. During the reporting period, the company achieved operating revenue of RMB 6.009 billion, a year-on-year decrease of 2.17%. Net profit attributable to shareholders of the listed company stood at -RMB 258 million, representing a substantial 92.6% year-on-year reduction in losses. Net profit excluding non-recurring gains and losses reached RMB 328 million, up 66.98% year on year.
The reasons for the company's net loss yet significant growth in adjusted net profit during the period are as follows:
First, the disposal of equity in its subsidiary Teltronic, S.A.U. led to a decline in overall operating revenue. Excluding the impact of the subsidiary sale, revenue would have increased by 4.19% year on year.
Second, the overall gross profit margin improved steadily, with the gross margin of its core professional communications business rising by 3.04 percentage points year on year, continuously enhancing overall earnings quality.
Third, driven by optimized liability structure, lower financing costs and increased exchange gains, financial expenses improved significantly compared with the same period last year.
Fourth, in accordance with the first-instance judgment on licensing fees for H-series DMR products, the company accrued approximately US$110 million in estimated liabilities. Meanwhile, based on the first-instance ruling in the DOJ case, it reversed US$10 million of previously accrued estimated liabilities. In addition, the company’s legal expenses decreased notably year on year.
Fifth, the completion of the equity sale of subsidiary Teltronic, S.A.U. generated investment income of about RMB 88 million.