Chongqing Machinery & Electric (2722) investor relations material

Executive summary

• Revenue reached RMB10,044.4 million in 2025, up 11.9% year-over-year, with profit attributable to shareholders surging 76.9% to RMB763.9 million and EPS at RMB0.21.

• Gross profit increased 3.6% to RMB1,619.2 million, while gross margin slightly declined to 16.1% due to higher revenue share from lower-margin products.

• Operating profit rose 55.8% to RMB805.3 million, mainly driven by a significant increase in investment income from associates and joint ventures.

• The Board proposed a final dividend of RMB0.055 per share, totaling RMB202.7 million, subject to AGM approval.

Financial highlights

• Revenue: RMB10,044.4 million (+11.9% YoY); gross profit: RMB1,619.2 million (+3.6% YoY); gross margin: 16.1%.

• Profit attributable to shareholders: RMB763.9 million (+76.9% YoY); basic EPS: RMB0.21 (+76.9% YoY).

• Operating profit: RMB805.3 million (+55.8% YoY); investment income: RMB789.8 million (+58.4% YoY).

• Net cash from operating activities: RMB459.5 million; cash and bank deposits: RMB2,684.8 million.

• Total assets: RMB19,952.3 million; net assets: RMB9,306.8 million; gearing ratio: 19.5%.

Outlook and guidance

• The company expects continued revenue growth in 2026, driven by policy support and enhanced product competitiveness across all business segments.

• Strategic focus for 2026 includes high-quality development, digital transformation, innovation, and expansion in high-margin and overseas markets.

• Gross margin is expected to remain under pressure due to industry competition, but profitability will be supported by process optimization and customer focus.