Glodon Company (002410) H1 2025 earnings summary

Executive summary

• Achieved net profit attributable to shareholders of ¥237 million, up 23.65% year-over-year, despite a 5.23% decline in revenue to ¥2.78 billion, mainly due to a decrease in digital cost business revenue.

• Gross margin improved by 1.11 percentage points to 87.79% through product mix optimization and reduction of low-margin products.

• AI-driven products and services contributed over ¥40 million in new contract value, with significant progress in AI applications across design, cost, and construction management.

• Overseas business revenue grew 9.62% year-over-year, with Q2 overseas revenue up 21.62% sequentially, reversing Q1 decline.

Financial highlights

• Operating cash outflow improved by 19% year-over-year to -¥553.6 million, reflecting better receivables and cash collection.

• Basic EPS rose 23.67% to ¥0.1442; weighted average ROE increased by 0.71 percentage points to 3.94%.

• Total assets at period end were ¥9.35 billion, down 8.6% from year-end; net assets attributable to shareholders decreased 1.66% to ¥5.86 billion.

• Non-recurring gains totaled ¥23.54 million, mainly from government grants, investment income, and litigation compensation.

Outlook and guidance

• Focus for H2 2025 includes deepening integrated design, refined cost management, digital construction, and global expansion.

• Plans to leverage AI and data to capture opportunities from market reforms and further enhance product integration and customer value.

• Continued investment in infrastructure, overseas business, and new product development to drive long-term growth.