NARI Technology (600406) Q2 2025 earnings summary

Executive summary

• Revenue for 1H 2025 reached RMB 24.24 billion, up 19.54% year-over-year; net profit attributable to shareholders was RMB 2.95 billion, up 8.82% year-over-year.

• Operating cash flow turned positive to RMB 2.81 billion from negative RMB 165 million in 1H 2024.

• Major business segments—smart grid, digital integration, low-carbon energy, and industrial internet—showed robust growth, with international business revenue up 139.18% year-over-year.

• Significant R&D achievements included new patents, product launches, and successful deployment of advanced grid and energy solutions.

Financial highlights

• Operating income: RMB 24.24 billion, up 19.54% year-over-year.

• Net profit attributable to shareholders: RMB 2.95 billion, up 8.82% year-over-year.

• Gross margin: 26.38%, down 2.46 percentage points year-over-year.

• Basic and diluted EPS: RMB 0.37, up 9.26% year-over-year.

• Operating cash flow: RMB 2.81 billion, a significant improvement from the prior year.

Outlook and guidance

• Management expects continued growth driven by digitalization, grid modernization, and international expansion.

• Focus on R&D, new energy, and smart grid technologies to capture emerging market opportunities.

• Ongoing cost control and efficiency initiatives to support profitability.