Precision Tsugami (China) Corporation (1651) H2 2025 earnings summary

Executive summary

• Revenue rose 36.6% year-over-year to RMB4,261.6 million, driven by strong demand recovery in the CNC machine tools market, especially from the automotive sector.

• Net profit increased 63.0% year-over-year to RMB782.4 million, with gross margin improving by 4.4 percentage points to 33.1%.

• Cost reduction and efficiency initiatives enabled competitive pricing and improved profitability.

• Basic earnings per share reached RMB2.08, up from RMB1.26 last year.

Financial highlights

• Revenue: RMB4,261.6 million (up 36.6% year-over-year).

• Gross profit: RMB1,410.4 million (up 57.5% year-over-year); gross margin: 33.1%.

• Net profit: RMB782.4 million (up 63.0% year-over-year); net margin: 18.4%.

• Selling and distribution expenses: RMB189.9 million (up 21.9%).

• Administrative expenses: RMB152.6 million (up 34.1%).

• Other income and gains: RMB80.4 million (down 5.7%).

• Finance costs: RMB412,000 (down from RMB993,000).

• Income tax expense: RMB354.8 million (up 59.3%).

Outlook and guidance

• Industry demand expected to remain robust in FY2026, with continued growth in automotive and high-tech sectors.

• New plant in Pinghu operational since October 2024, increasing annual capacity by 3,000–4,000 units.

• Plans to construct additional plants to further expand capacity.

• External uncertainties from tariff wars noted, but limited impact observed so far.