Xingda International (1899) H1 2025 earnings summary

Executive summary

• Revenue for H1 2025 declined by 8.1% year-over-year to RMB5,664.3 million, mainly due to a 5.0% drop in sales volume to 688,900 tonnes, while gross profit fell 7.2% to RMB1,121.1 million but gross margin improved to 19.8%.

• Profit attributable to owners rose 3.5% to RMB198.9 million, with basic EPS up 0.6% to RMB10.37 cents.

• Net profit was RMB283.2 million, nearly flat year-over-year.

• Cash balance remained strong at RMB1,307.1 million, supporting robust liquidity.

• No interim dividend was declared for the period.

Financial highlights

• EBITDA increased by 8.0% year-over-year to RMB941.1 million, with EBITDA margin rising to 16.6%.

• Gross profit margin improved to 19.8%, and return on equity was 3.1%.

• Gearing ratio increased to 36.2%, and current ratio remained at 1.0.

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

• Finance costs increased 9.7% to RMB113.4 million.

Segment performance

• Radial tire cords accounted for 87% of revenue, with sales for trucks down 10.1% and for passenger cars up 0.1% year-over-year.

• Bead wires and hose wires contributed 6% and 7% of revenue, declining 22.0% and 11.3% respectively.

• Export sales volume of radial tire cords grew 10.8%, while domestic sales fell 8.1%.

• Overall plant utilization rate dropped to 83% from 96% due to new capacity and weaker domestic demand.

• Export sales by region: Europe (30%), Asia ex-China & India (26%), India (15%), North America (10%), South America (14%), Africa (3%).