Folangsi (2499) H2 2025 earnings summary

Executive summary

• FY2025 revenue rose 8.6% to RMB1,748.8m; profit fell 19.4% to RMB82.2m, but increased 10.3% YoY excluding the 2024 one-off acquisition gain.

• Strategy prioritized higher-value services, platform operations, product diversification and Southeast Asian expansion; service revenue and gross margin advanced while equipment and parts sales declined.

Financial highlights

• Revenue was RMB1,748.8m, up 8.6% YoY; gross profit rose 13.0% to RMB524.0m and gross margin expanded to 30.0% from 28.8%.

• Profit before tax was RMB86.7m versus RMB105.4m; net profit was RMB82.2m versus RMB102.0m, reflecting the 2024 acquisition gain of RMB27.4m.

• Adjusted for the 2024 one-off acquisition gain, profit increased 10.3% YoY, from RMB74.5m to RMB82.2m; basic and diluted EPS was RMB0.24 versus RMB0.29.

• Cost of sales rose 6.8% to RMB1,224.8m; selling expenses increased 16.9% to RMB116.0m and administrative expenses rose 16.1% to RMB220.9m.

Outlook and guidance

• 2026 strategy combines service networking, product diversification, internationalization and intelligence, targeting a global network of over 1,000 outlets, including over 600 in China and over 200 overseas.

• Plans include deepening Indonesia, Vietnam and Malaysia operations and expanding into Thailand, Saudi Arabia and the UAE; forklifts and electric loaders remain core product categories.

• Priorities include unmanned logistics solutions, IoT and IT investment, remote diagnostics, service quality, safety controls and risk prevention; no financial forecast was stated.