The company's operational viability is severely compromised, as evidenced by a -19.0% gross margin and a -94.6% operating margin reported in 2024Q4.
Lixiang Education Holding Co., Ltd. (LXEH) annual income statement — 11-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 |
|---|
| Sales/Revenue | 50.11M | 4.29M | 32.8M | 50.82M | 41.35M | 34.44M | 25.7M | 13.43M | 427.57M | 130.33M | 115.84M | 99.51M |
| Revenue Growth % | - | -86.92% | -35.45% | 22.88% | 20.09% | 33.97% | 91.38% | -96.86% | 228.06% | 12.51% | 16.41% | - |
| Cost of Goods Sold | 56.71M | 5.95M | 35.85M | 46.85M | 40.4M | 17.36M | 10.75M | 4.76M | 268.83M | 74.87M | 70.39M | 63.31M |
| COGS % of Revenue | - | 138.69% | 109.3% | 92.2% | 97.71% | 50.4% | 41.83% | 35.47% | 62.87% | 57.45% | 60.76% | 63.62% |
| Gross Profit | -6.6M | -1.66M | -3.05M | 3.97M | 948.78K | 17.08M | 14.95M | 8.67M | 158.74M | 55.46M | 45.45M | 36.2M |
| Gross Margin % | - | -38.69% | -9.3% | 7.8% | 2.29% | 49.6% | 58.17% | 64.53% | 37.13% | 42.55% | 39.24% | 36.38% |
| Gross Profit Growth % | - | 45.59% | -176.93% | 317.92% | -94.45% | 14.23% | 72.53% | -94.54% | 186.22% | 22.02% | 25.57% | - |
| Operating Expenses | 38.1M | 3.4M | 22.91M | 113.28M | 46.57M | 18.37M | 10.12M | 2.12M | 82.86M | 8.81M | 9M | 7.48M |
| OpEx % of Revenue | - | 79.31% | 69.85% | 222.92% | 112.61% | 53.35% | 39.39% | 15.79% | 19.38% | 6.76% | 7.77% | 7.52% |
| Selling, General & Admin | 38.1M | 24.45M | 22.91M | 25.46M | 27.73M | 18.37M | 10.12M | 2.12M | 82.13M | 8.61M | 9M | 7.48M |
| SG&A % of Revenue | - | 570.12% | 69.85% | 50.11% | 67.05% | 53.35% | 39.39% | 15.79% | 19.21% | 6.61% | 7.77% | 7.52% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | -21.05M | 0 | 87.82M | 18.84M | 0 | 0 | 0 | 735.37K | 202.79K | 0 | 0 |
| Operating Income | -44.7M | -5.06M | -25.96M | -109.31M | -45.62M | -1.29M | 4.83M | 6.55M | 75.88M | 46.65M | 36.46M | 28.72M |
| Operating Margin % | - | -118% | -79.15% | -215.12% | -110.32% | -3.75% | 18.78% | 48.74% | 17.75% | 35.79% | 31.47% | 28.86% |
| Operating Income Growth % | - | 80.5% | 76.25% | -139.62% | -3429.71% | -126.77% | -26.24% | -91.37% | 62.66% | 27.96% | 26.94% | - |
| EBITDA | -39.89M | 9.54M | -14.22M | -98.02M | -34.01M | 3.94M | 9.69M | 14.38M | 83.35M | 52.44M | 40.02M | 31.66M |
| EBITDA Margin % | - | 222.3% | -43.37% | -192.9% | -82.23% | 11.46% | 37.71% | 107.06% | 19.49% | 40.24% | 34.55% | 31.82% |
| EBITDA Growth % | - | 167.03% | 85.49% | -188.25% | -962.02% | -59.31% | -32.59% | -82.75% | 58.93% | 31.03% | 26.41% | - |
| D&A (Non-Cash Add-back) | 4.81M | 14.6M | 11.74M | 11.29M | 11.61M | 5.24M | 4.87M | 7.83M | 7.47M | 5.8M | 3.57M | 2.94M |
| EBIT | -44.7M | -5.06M | -25.96M | -86.64M | -26.78M | -1.29M | 4.83M | 6.55M | 75.88M | 46.65M | 36.46M | 28.72M |
| Net Interest Income | -3.71M | -479.56K | -2.61M | -3.5M | -4.01M | -2.38M | -880.76K | -1.73M | -5.2M | -4.36M | -3.45M | -3.29M |
| Interest Income | 10.72K | 1.29K | 293.97K | 133.99K | 74.99K | 0 | 0 | 0 | 89.47K | 106.25K | 101.46K | 48.52K |
| Interest Expense | 3.72M | 480.86K | 2.9M | 3.63M | 4.08M | 2.38M | 880.76K | 1.73M | 5.29M | 4.46M | 3.55M | 3.34M |
| Other Income/Expense | -13.48M | -11.81M | 1.26M | 8.84M | 35.75M | 2.21M | -882.19K | -1.75M | 6.36M | 7.49M | 3.84M | 1.18M |
| Pretax Income | -58.18M | -16.87M | -24.7M | -100.48M | -9.87M | 919.79K | 3.95M | 4.8M | 82.24M | 54.13M | 40.3M | 29.9M |
| Pretax Margin % | - | -393.29% | -75.31% | -197.73% | -23.87% | 2.67% | 15.35% | 35.73% | 19.23% | 41.54% | 34.79% | 30.05% |
| Income Tax | -44.37K | 0 | 0 | 3.12M | 48.39K | 670.98K | 0 | 0 | 0 | 0 | 0 | 0 |
| Effective Tax Rate % | 0.08% | 0% | 0% | -3.1% | -0.49% | 72.95% | 0% | 0% | 0% | 0% | 0% | 0% |
| Net Income | -58.22M | -16.96M | -24.63M | -126.63M | -7.79M | -243.82M | 33.59M | 47.24M | 82.24M | 54.13M | 40.3M | 29.9M |
| Net Margin % | - | -395.37% | -75.08% | -249.2% | -18.84% | -708.02% | 130.66% | 351.69% | 19.23% | 41.54% | 34.79% | 30.05% |
| Net Income Growth % | - | 31.14% | 80.55% | -1525.58% | 96.81% | -825.98% | -28.9% | -42.56% | 51.91% | 34.34% | 34.76% | - |
| Net Income (Continuing) | -58.13M | -16.87M | -24.7M | -103.6M | -9.92M | 248.82K | 3.95M | 4.8M | 82.24M | 54.13M | 40.3M | 29.9M |
| Discontinued Operations | 0 | 0 | 0 | -23.39M | 1.83M | -244.07M | 29.64M | 42.44M | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | -640.95K | -310.59K | 548.63K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | - | -64.00 | -21.00 | -131.00 | -14.00 | -366.00 | 7.29 | 9.60 | 164.00 | 812.00 | 604.00 | 449.00 |
| EPS Growth % | - | -204.76% | 83.97% | -835.71% | 96.17% | -5120.58% | -24.06% | -94.15% | -79.8% | 34.44% | 34.52% | - |
| EPS (Basic) | - | -64.00 | -21.00 | -131.00 | -14.00 | -366.00 | 7.29 | 9.60 | 164.00 | 812.00 | 604.00 | 449.00 |
| Diluted Shares Outstanding | 1.92M | 1.91M | 1.17M | 785.85K | 666.67K | 666.67K | 541.67K | 500K | 500K | 66.67K | 66.67K | 66.67K |
| Basic Shares Outstanding | 1.92M | 1.91M | 1.17M | 785.85K | 666.67K | 666.67K | 541.67K | 500K | 500K | 66.67K | 66.67K | 66.67K |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying LXEH stock.
For fiscal year 2025, Lixiang Education Holding Co., Ltd. (LXEH) reported total revenue of $4.3M. This represents a 95.7% decline compared to $99.5M in 2015.
Lixiang Education Holding Co., Ltd. (LXEH) reported a net loss of $17.0M for the fiscal year ending 2025.
Lixiang Education Holding Co., Ltd. (LXEH) reported an operating income of $-5.1M, resulting in an operating profit margin of -118.0%. This margin reflects the operational efficiency of the business before interest and taxes.
Lixiang Education Holding Co., Ltd. (LXEH) generated $-1.7M in gross profit for the year, representing a gross profit margin of -38.7%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Regulatory-driven business model collapse
Revenue Contraction Reflects Structural Pivot
As reported in recent financial filings, LXEH has experienced a severe revenue decline, with the most recent quarterly figures showing a 31.7% year-over-year contraction, signaling that the company's transition away from its legacy compulsory education model remains highly volatile and lacks a stable growth foundation.
The consistent downward trend in top-line performance suggests that the company's pivot into food procurement and IT services has failed to offset the loss of its core tuition-based revenue. Investors should monitor whether these new business lines can achieve any meaningful scale, as current data indicates a business in terminal decline rather than a successful strategic transformation.
Negative Margins Indicate Operational Distress
Based on the company's latest income statement, LXEH reported a gross margin of -19.0%, highlighting a fundamental inability to cover the direct costs associated with its current service offerings following the regulatory-induced divestment of its primary education assets.
The persistent failure to achieve positive gross margins suggests that the company's new business segments are structurally unprofitable or poorly managed. This margin profile implies that every dollar of revenue generated currently exacerbates the company's cash burn, warranting extreme caution regarding the viability of the current operating model.
Overhead Burden Exceeds Revenue Capacity
According to the provided financial data, the company's operating margin of -94.6% in the most recent quarter demonstrates that corporate overhead remains disproportionately high relative to the significantly diminished revenue base, indicating a lack of effective cost rationalization during this period of extreme transition.
The inability to scale SG&A expenses down in line with the revenue collapse suggests that the company is carrying excessive fixed costs that continue to erode shareholder value. Without a drastic reduction in administrative and operational overhead, the company appears unlikely to reach an inflection point toward sustainable profitability.
Sustainability of Cash-Based Survival Strategy
While the company maintains a cash position of approximately $12.7M, the current burn rate evidenced by the -118% operating margin suggests that this liquidity may be exhausted rapidly, casting doubt on the long-term sustainability of the current pivot strategy as reported in recent financial statements.
Short-sellers would likely focus on the disconnect between the company's remaining cash and its inability to generate positive operating cash flow. The reliance on disparate, low-margin business lines suggests that the company is merely delaying an inevitable liquidity crisis rather than building a durable, value-creating enterprise.