Folangsi (2499) H1 2025 earnings summary

Executive summary

• H1 2025 revenue rose 17.6% YoY to RMB856.2m and profit for the period increased 19.2% to RMB50.3m; EPS was RMB0.14.

• The platform-and-services network covered 48 cities with 89 outlets and more than 59,700 equipment assets under operation and management at June 30, 2025.

• Strategic priorities include expanding equipment categories, strengthening digital service capabilities and advancing international operations.

Financial highlights

• Revenue increased to RMB856.2m from RMB728.0m; gross profit rose 20.1% to RMB263.8m and gross margin improved to 30.8% from 30.2%.

• Profit before tax increased to RMB54.2m from RMB43.6m; profit for the period rose to RMB50.3m from RMB42.2m.

• Cost of sales grew 16.5% to RMB592.5m; selling and distribution expenses rose 21.9% to RMB55.9m and administrative expenses increased 22.6% to RMB106.2m.

• Operating cash flow was RMB254.7m versus RMB239.6m; investing cash outflow was RMB88.1m and financing cash outflow was RMB205.9m.

• Cash and cash equivalents were RMB167.6m at June 30, 2025, down from RMB205.4m at December 31, 2024.

Outlook and guidance

• H2 priorities include steady growth, stronger internal controls, service enhancement, organizational development and safety, supported by the platform-provider strategy.

• Plans include broadening equipment categories, applying IoT and big data to core services, and developing an intelligent operations management platform.

• Southeast Asia and the Middle East are target expansion markets, with localized operations and differentiated product strategies planned.

• Plans include expanding electric loaders and entering cleaning equipment, including industrial cleaning robots and high-pressure cleaning equipment.