Minth Group (0425) H1 2025 earnings summary

Executive summary

• Revenue rose 10.8% year-over-year to RMB12.29 billion, driven by strong international growth and rapid expansion in battery housing and structural parts, despite a 4.9% decline in China revenue due to shrinking joint venture OEM market share.

• Profit attributable to owners increased 19.5% year-over-year to RMB1.28 billion, supported by economies of scale, improved capacity utilization, and cost control, with basic EPS up to RMB1.120.

• Gross profit grew 9.9% to RMB3.47 billion, with gross margin stable at 28.3% as cost control and efficiency measures offset slight margin pressure.

• International revenue surged 21.6%, while China revenue declined 4.9% due to shrinking joint venture OEM market share.

• The Group continued to invest in R&D, digital transformation, and global production capacity, especially in North America and Europe.

Financial highlights

• Revenue: RMB12.29 billion (+10.8% YoY); China: RMB4.31 billion (-4.9% YoY); International: RMB7.98 billion (+21.6% YoY).

• Gross profit: RMB3.47 billion (+9.9% YoY); gross margin: 28.3% (-0.2pp YoY).

• Profit attributable to owners: RMB1.28 billion (+19.5% YoY); basic EPS: RMB1.120.

• Operating cash flow: RMB2.24 billion; cash and equivalents: RMB5.73 billion.

• Capital expenditure: RMB902 million (-17.5% YoY).

Outlook and guidance

• Chinese passenger vehicle sales expected to grow 4.9% in 2025, with NEV sales up 24.4%.

• Global light vehicle sales forecasted to rise 1.7% in 2025, but production may decline as automakers control inventory.

• The Group will continue to expand localized production, especially in North America and Europe, to mitigate tariff and geopolitical risks.

• Continued focus on R&D, intelligent products, and new sectors such as robotics and low-altitude aircraft.

• No interim dividend declared for the period; final 2024 dividend of HK$0.435 per share paid in June 2025.