Shuangdeng Group (6960) H1 2025 earnings summary

Executive summary

• H1 revenue rose 26.2% YoY to RMB2,246.3 million, while profit for the period fell 2.7% to RMB160.6 million and gross margin declined to 14.9%.

• AIDC data-center energy storage became the largest revenue contributor, reaching RMB1,028 million, or 47.2% of revenue.

Financial highlights

• Gross profit edged up 0.4% to RMB335.7 million; profit before tax was RMB179.2 million versus RMB188.2 million.

• Cost of sales rose 32.2% to RMB1,910.5 million, outpacing revenue growth.

• Net operating cash flow increased to RMB506.8 million from RMB86.5 million; cash and cash equivalents were RMB605.7 million at period-end.

Outlook and guidance

• AIDC revenue is expected to maintain high growth; new power-storage orders are expected to convert progressively into revenue in H2.

• Priorities include expanding AIDC coverage, commercializing battery technologies, improving cost controls, and developing localized Southeast Asian production.

• Plans include executing overseas GWh-scale storage agreements and developing integrated AIDC offerings spanning backup power, storage, and green-power connections.

• New power-storage orders are expected to support H2 revenue and annual performance growth.