Hangzhou Greatstar Industrial (002444) Q2 2025 earnings summary

Executive summary

• Operating revenue for H1 2025 was RMB 7.03 billion, up 4.87% year-over-year; net profit attributable to shareholders reached RMB 1.27 billion, up 6.63% year-over-year; net profit after non-recurring items was RMB 1.25 billion, up 3.94% year-over-year.

• Power tools segment grew rapidly with 56.03% year-over-year revenue increase, while hand tools and industrial tools saw modest growth of 1.64% and 0.12%, respectively.

• Cash dividend of RMB 2.5 per 10 shares (totaling RMB 298.6 million) proposed for H1 2025.

Financial highlights

• Gross margin for tools and hardware was 31.97%, a slight decrease of 0.3 percentage points year-over-year.

• Net cash flow from operating activities was RMB 1.03 billion, up 76.54% year-over-year.

• Total assets at period end were RMB 22.63 billion, down 2.05% from year-end 2024; net assets attributable to shareholders rose 10.44% to RMB 18.12 billion.

• Basic and diluted EPS were both RMB 1.0656, up from RMB 0.9994 in H1 2024.

• R&D investment reached RMB 175 million, with over 1,000 new products designed.

Outlook and guidance

• Focus remains on expanding power tools and cross-border e-commerce, with continued investment in global manufacturing and R&D.

• The company aims for further growth in power tools and original brands, especially in non-U.S. markets.