Dongyue Group (189) investor relations material

Executive summary

• Revenue for the first half of 2025 rose 2.79% year-over-year to RMB7.46 billion, with net profit surging 167.6% to RMB1.06 billion, driven by strong refrigerant segment performance and improved gross margin.

• Gross profit margin increased to 29.11% from 19.83% year-over-year, and operating profit margin nearly doubled to 19.00%.

• The Group maintained production stability, safety, and environmental compliance, with no major incidents and improved efficiency metrics.

• R&D investment increased 14.87% year-over-year, with 25 new patents granted and a focus on market-driven innovation.

• Cost optimization led to a 7.61% decrease in distribution expenses and a 5.17% decrease in administrative expenses.

Financial highlights

• Net profit attributable to owners increased 153.28% year-over-year.

• Operating cash flow for the period was RMB1.51 billion, up from RMB409.5 million year-over-year.

• Bank balances and cash stood at RMB3.54 billion as of June 30, 2025.

• Basic and diluted EPS were RMB0.47, up from RMB0.17 year-over-year.

• No interim dividend was declared for the period.

Outlook and guidance

• The Group will focus on market-driven strategies to expand market share and balance domestic and international sales.

• Continued emphasis on cost control, efficiency, and R&D investment to sustain growth.

• Plans to enhance production efficiency, safety, and environmental protection to maintain competitive advantage.