Harbin Electric (1133) H2 2025 earnings summary

Executive summary

• Achieved record operating revenue of RMB45.70 billion in 2025, up 19.32% year-over-year, and net profit attributable to owners of RMB2.67 billion, up 58.15% year-over-year.

• Signed formal contracts worth RMB64.63 billion, a 13.64% increase year-over-year, with strong growth in new-type power equipment and modern manufacturing services.

• R&D investment reached RMB2.38 billion (5.16% of revenue), with 48 major awards and 290 patents authorized.

• Major breakthroughs in high-end power equipment, digital transformation, and green factory recognition.

Financial highlights

• Operating revenue: RMB45.70 billion (+19.32% YoY); net profit attributable to owners: RMB2.67 billion (+58.15% YoY); EPS: RMB1.19.

• Gross profit margin improved to 14.27% (+1.74pp YoY); gross profit: RMB6.52 billion.

• Total assets: RMB78.66 billion (+9.34% YoY); total liabilities: RMB60.19 billion (+7.95% YoY); equity attributable to owners: RMB17.80 billion.

• Net cash flow from operating activities: RMB4.63 billion; cash and equivalents at year-end: RMB14.19 billion.

• Final dividend proposed: RMB0.358/share (30.08% payout ratio), totaling RMB800.6 million.

Outlook and guidance

• 2026 marks the start of the 15th Five-Year Plan, with China’s installed power generation capacity expected to exceed 4.3 billion kW and non-fossil energy to reach 63% of total capacity.

• Focus on high-quality growth, innovation, digital transformation, and expansion in strategic emerging industries.

• Continued emphasis on risk management, efficiency, and international market expansion.