Breton Technology (1333) H1 2025 earnings summary

Executive summary

• Revenue for the six months ended June 30, 2025, rose 22.2% year-over-year to RMB326.8 million, driven by strong sales of battery-electric wide-body dump trucks.

• Gross profit increased 152.1% year-over-year to RMB21.0 million, with gross margin improving to 6.4% from 3.1% a year earlier.

• Loss for the period widened 12.9% year-over-year to RMB174.2 million, mainly due to higher credit impairment losses.

• The company accelerated mass production of new battery-electric models, expanded its autonomous driving business, and autonomous equipment sales exceeded the full-year 2024 level.

• International expansion progressed in Africa and Southeast Asia, with new PV and micro-grid projects and equipment sales agreements.

Financial highlights

• Revenue: RMB326.8 million (+22.2% YoY); gross profit: RMB21.0 million (+152.1% YoY); gross margin: 6.4% (+3.3ppt YoY).

• Loss for the period: RMB174.2 million (+12.9% YoY); adjusted net loss: RMB156.6 million.

• Cash and cash equivalents: RMB327.3 million (+64.2% vs Dec 2024); inventories: RMB229.7 million (-11.3% vs Dec 2024).

• Loans and borrowings: RMB516.1 million (+46.5% vs Dec 2024); gearing ratio: 55.9% (vs 52.6% at Dec 2024).

• Selling expenses/revenue: 9.2% (down 1ppt YoY); R&D expenses/revenue: 11.4% (down 4.8ppt YoY); administrative expenses fell 10.4% to RMB47.5 million.

Outlook and guidance

• Strategic focus on integrated zero-carbon mining solutions, combining PV-storage micro-grids and battery-electric equipment.

• Plans to utilize HK$147.8 million in IPO proceeds for technology advancement, plant establishment, sales network expansion, and working capital by 2027.

• Continued international expansion and strengthening of after-sales and service capabilities.

• Plans to expand PV storage and charging energy business internationally, especially in regions with high electricity costs.

• No interim dividend declared for the period.