Shuangdeng Group (6960) H2 2025 earnings summary

Executive summary

• FY2025 revenue rose 13.0% YoY to RMB5,083.4m, while profit fell 27.7% to RMB255.5m amid lower gross margin, raw-material cost pressure and product-mix changes.

• Business mix shifted toward AIDC and new power storage: AIDC storage became the largest revenue source, while telecom storage remained a stable foundation.

• Strategy centers on AIDC energy storage, supported by new power and telecom storage, with capacity expansion and global delivery capability prioritized for 2026.

Financial highlights

• Revenue was RMB5,083.4m, up 13.0% YoY; gross profit was RMB709.2m, down 5.6%; profit for the year was RMB255.5m, down 27.7%.

• Cost of sales rose 16.7% to RMB4,374.2m, outpacing revenue growth; gross margin declined to 14.0% from 16.7%.

• Profit before tax fell 25.5% to RMB300.2m; income tax expense decreased 9.7% to RMB44.6m.

• Lithium-ion battery revenue grew 31.6% to RMB1,968.9m; lead-acid products rose 2.3% to RMB2,974.2m.

• Adjusted for no separately reported adjustment measure, reported basic and diluted EPS were RMB0.67, down from RMB0.99.

Outlook and guidance

• 2026 is designated a year of capability enhancement, with priorities in technology innovation, capacity construction and global expansion; no quantitative financial guidance was stated.

• Plans include domestic semi-solid-state cell capacity, further high-rate lithium-cell expansion and Southeast Asian AIDC-focused cell production lines.

• The strategy targets a shift from single-product sales to integrated technology, product and service solutions, supported by localized sales platforms and overseas AIDC customer development.

• AIDC remains the core growth engine; new power storage and telecom storage are the supporting pillars, with GWh-scale projects and overseas market development targeted.