Zhejiang Shuanghuan Driveline (002472) Q4 2025 earnings summary

Executive summary

• Achieved revenue of ¥9.11 billion in 2025, up 3.77% year-over-year; net profit attributable to shareholders rose 23.21% to ¥1.26 billion.

• New energy vehicle (NEV) gear business became the largest segment, contributing 45.02% of total revenue, up 21.72% year-over-year.

• Overseas sales surged 58.88% year-over-year, reflecting successful international expansion.

• Maintained robust R&D investment, with R&D expenses at ¥490.5 million, 5.38% of revenue.

Financial highlights

• Operating cash flow increased 42.23% year-over-year to ¥2.39 billion.

• Total assets at year-end reached ¥18.76 billion, up 18.25% from prior year.

• Gross margin for core mechanical manufacturing was 27.34%, up 1.3 percentage points year-over-year.

• Basic and diluted EPS were both ¥1.50, up 22.95% year-over-year.

• ROE improved to 13.36% from 12.28% a year earlier.

Outlook and guidance

• Plans to accelerate overseas capacity with Hungary and Vietnam bases, focusing on NEV and smart actuator markets.

• Will continue to expand R&D, targeting high-precision, low-noise, and lightweight gear solutions.

• Expects to further increase global NEV gear market share and diversify into smart home and robotics sectors.