Xingda International (1899) H1 2025 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2025 declined 8.1% year-over-year to RMB5,664.3 million, with gross profit down 7.2% to RMB1,121.1 million and gross margin up to 19.8%.

• Net profit was RMB283.2 million, nearly flat year-over-year, while profit attributable to owners rose 3.5% to RMB198.9 million and basic earnings per share increased to RMB10.37 cents.

• Total sales volume dropped 5.0% year-over-year, with radial tire cords down 2.8%, bead wires down 17.3%, and hose/other wires down 8.5%.

• No interim dividend was declared for the period.

Financial highlights

• EBITDA increased 8.0% year-over-year to RMB941.1 million.

• Other gains and losses, net, improved to a gain of RMB97.2 million, mainly due to foreign exchange gains.

• Finance costs increased 9.7% to RMB113.4 million due to higher average borrowings.

• Income tax expense decreased by 19.7% to RMB75.0 million, with an effective tax rate of 20.9%.

• Bank balances and cash rose 56.4% to RMB1,307.1 million.

Outlook and guidance

• The company remains cautiously optimistic, expecting the radial tire cord industry to benefit from national infrastructure projects, new energy vehicle growth, and government policies, but faces short-term pressure from global trade uncertainties and price competition.

• The company will focus on green product development, technological innovation, and optimizing global capacity.