Aux Electric (2580) H2 2025 earnings summary

Executive summary

• Revenue for 2025 was RMB30,048.6 million, stable year-over-year, with domestic resilience and strong growth in Asia (ex-China), offset by declines in North America.

• Net profit attributable to owners was RMB2,235.0 million, down 23.2% from 2024, mainly due to lower gross margin and higher selling expenses.

• Gross profit margin declined to 18.8% from 21.0% due to intensified competition, higher raw material costs, and inventory levels.

• The company completed its IPO in September 2025, raising HK$3,993.5 million, boosting cash and net assets.

• Final dividend of RMB1.06 per share proposed, subject to AGM approval.

Financial highlights

• Revenue: RMB30,048.6 million (up 1.0% YoY); net profit: RMB2,235.0 million (down 23.2% YoY).

• Gross profit: RMB5,659.7 million; gross margin: 18.8% (down from 21.0%).

• Selling and distribution expenses rose 25.5% to RMB1,602.8 million; administrative expenses up 6.0% to RMB1,086.8 million.

• R&D expenses decreased 3.0% to RMB688.7 million.

• Net cash and cash equivalents increased to RMB5,416.4 million (up 299.9%).

• Gearing ratio improved to 68.3% from 84.1%.

Outlook and guidance

• Focus on internationalization, expanding own brands, and deepening central air conditioning business.

• Plans to establish 3–5 new overseas sales companies annually and extend product lines to data center and liquid-cooled air conditioners.

• Continued investment in R&D, intelligent control, and green technologies.

• Cautious on external uncertainties, with targeted actions for stable, sustainable growth in 2026.