Nanxing Co., Ltd. Focuses on Main Business Profitability Recovery and Deepens Furniture Manufacturing and Digital Services

(Source: Caixin)

          This industry-leading company, deeply engaged in the field of smart furniture equipment for nearly thirty years, has experienced the pain of goodwill impairment in 2024 and is now seeing a recovery in performance.            

In 2025, for Nanjing Xing (002757.SZ), it is a year of turning points and breakthroughs.

This industry leader, with nearly thirty years of focus on smart furniture equipment, has experienced the pain of goodwill impairment in 2024 and is now seeing a recovery in performance. According to the 2025 annual performance forecast, the company’s net profit attributable to the parent is expected to be between 90 million yuan and 120 million yuan, achieving a profit recovery.

As a national “Little Giant” specialized and innovative enterprise, Nanjing Xing adheres to its core business of smart furniture manufacturing equipment, and maintains steady growth in its IDC and cloud computing digital services. Relying on multiple policy dividends such as digital transformation of light industry, large-scale equipment upgrades, the “East Data West Computing” project, and artificial intelligence computing power construction, the company has opened up space for intelligent transformation and new productivity development in the furniture industry.

In March 2026, Nanjing Xing’s appearances at the global distributor conference and the Guangzhou Home Expo sent a strong signal to the market of “Linking the world, creating the future intelligently.”

Focusing on core business profit recovery

In 2025, Nanjing Xing’s operating fundamentals have significantly improved. The performance forecast shows that the net profit attributable to the parent is expected to reach between 90 million yuan and 120 million yuan, with non-recurring profit and loss adjusted net profit expected to be between 75 million yuan and 105 million yuan, indicating a notable improvement in profitability quality.

Behind this turnaround, the first factor is the fading impact of goodwill impairment. As IDC business performance steadily grows in 2025, the impact of goodwill impairment on Nanjing Xing’s profits has greatly decreased, allowing the true operating profitability to be revealed. Meanwhile, IDC business continues to grow; the semi-annual report shows that in the first half of 2025, the company’s special equipment business achieved revenue of 731 million yuan, and IDC and cloud computing related services reached 877 million yuan, a year-on-year increase of 16.32%, with their proportion of total revenue rising to 54.51%.

The growth of IDC business not only offsets the decline in the special equipment segment but also becomes an important support for Nanjing Xing’s stable performance. From the revenue structure, the company has successfully transformed from a single equipment manufacturer into a comprehensive service provider driven by “high-end equipment + digital economy” dual engines.

In terms of operational quality, Nanjing Xing continues to optimize asset structure and operational efficiency. In the first half of 2025, net cash flow from operating activities was 228 million yuan, maintaining a healthy level; the asset-liability structure is reasonable, with 509 million yuan in cash and equivalents, providing solid financial support for subsequent capacity expansion and R&D investment.

Additionally, strategic focus is another key to Nanjing Xing’s profit recovery. The company has always adhered to its core business of smart furniture manufacturing equipment and has not been distracted by IDC business growth. Instead, through technological upgrades, product iterations, and service deepening, it further consolidates its leading position in the furniture equipment field.

Upgrade of core business in smart furniture equipment

The foundation of Nanjing Xing lies in nearly thirty years of focus and accumulation in panel furniture machinery. Headquartered in Dongguan, Guangdong, the company has two R&D centers and four manufacturing bases nationwide, and is recognized as a national high-tech enterprise and a national “Little Giant” specialized and innovative enterprise.

Product innovation is Nanjing Xing’s core competitiveness. From standalone equipment to intelligent workstations and entire factory smart production lines, the company has built a three-dimensional product system covering the full process of panel furniture manufacturing. Since 2025, the company’s key products, such as the high-speed automatic edge banding machine NB771 and the narrow board automatic edge banding machine NB671NC, have become popular in the market.

In addition to edge banding equipment, Nanjing Xing’s CNC panel saws, six-sided CNC drilling centers, intelligent cutting workstations, and intelligent packaging workstations are also at the forefront domestically. The company is the first domestic brand to realize an intelligent production line project for furniture manufacturing. Its smart production lines have been deployed in leading enterprises such as Sifang, Oppein, Kuka, and IKEA OEM systems, helping clients reduce material loss, lower labor costs, and improve production efficiency.

On the market and channel side, Nanjing Xing has built a global marketing network of “Headquarters Strategic Customer Department + Regional Distributors + Overseas Key Agents,” with over 200 sales and service centers.

In March, the global distributor conference was grandly held at the headquarters in Houjie, Dongguan, where distributors from five continents discussed cooperation plans; shortly after, at the Guangzhou Home Expo, the company’s booth was crowded, and its full-matrix intelligent equipment drew much attention, demonstrating brand influence and industry recognition.

Moreover, the improvement of the service ecosystem is an important part of Nanjing Xing’s differentiated competition. Recently, the company held the second special training session for edge banding machines, focusing on operation and maintenance core skills. Through immersive theoretical and practical training, the professionalism of distributor service teams was enhanced. This full-chain service system, empowered by headquarters and implemented at the terminal, effectively shortens response times, reduces service connection costs, and turns distributors into extensions of the company’s service capacity, jointly providing standardized and professional equipment support for furniture manufacturing enterprises.

New growth space unlocked by the digital economy engine

It is worth noting that IDC and cloud computing businesses have become Nanjing Xing’s future “growth poles.”

Since its acquisition of the subsidiary Yiwang Network in 2018, the company has developed into a leading provider of digital economy infrastructure services domestically, with business coverage including IDC basic services, AI and computing power, CDN, cloud computing, cloud interconnection, and digital solutions. The 2025 semi-annual report shows that in the first half of last year, IDC revenue increased by 16.32% year-on-year, surpassing the revenue from dedicated equipment and becoming the company’s largest income source.

Yiwang Network has established data center nodes in 16 provinces, over 30 cities nationwide, and some overseas regions. In the Guangdong-Hong Kong-Macao Greater Bay Area, it owns 3,110 standard cabinets at the “Yiwang·Zhixiang (South China)” data center and 1,602 high-standard cabinets at the “Nanjing Xing Shatian Green Industrial Cloud Data Base.” As of June 2025, Yiwang Network and its subsidiaries hold 213 copyrights, 30 utility model patents, and 9 invention patents, supported by nearly 100 technical service staff providing 24/7 operation and maintenance support.

Driven by the AI wave, Yiwang Network is accelerating its transformation into an intelligent computing infrastructure provider. In 2025, the company focused on operating basic computing power infrastructure, deploying computing clusters in its data centers to offer computing power leasing and services; it also actively cooperates with domestic AI hardware vendors to promote localized deployment of AI products, meeting the needs of industrial, government, education, and scientific research scenarios.

From the industry perspective, the intelligent transformation and digitalization of the furniture manufacturing industry are entering a fast lane. The Ministry of Industry and Information Technology’s “Implementation Plan for Digital Transformation of Light Industry” and policies for large-scale equipment upgrades continue to release sustained demand for smart equipment in the panel furniture market.

Meanwhile, the booming digital economy is driving high growth in the IDC industry. China Academy of Information and Communications Technology data shows that in 2024, China’s cloud computing market reached 828.8 billion yuan, a year-on-year increase of 34.4%, and is expected to surpass 3 trillion yuan by 2030.

Nanjing Xing’s dual-core business precisely taps into the intersection of these two major tracks, forming two advantages: empowering manufacturing with intelligent equipment and supporting the digital economy with IDC services.