Zoomlion Heavy Industry Science and Technology (000157) Q2 2025 earnings summary

Executive summary

• Achieved revenue of ¥24.85 billion, up 1.30% year-over-year; net profit attributable to shareholders rose 20.84% to ¥2.77 billion.

• Cash flow from operations increased 112.46% year-over-year to ¥1.75 billion.

• Overseas revenue grew over 14% year-over-year, now accounting for 55.58% of total revenue.

• Proposed interim dividend of ¥2.00 per 10 shares, 100% payout ratio.

Financial highlights

• Gross margin improved to 28.89% for engineering machinery, while agricultural machinery margin declined to 12.05%.

• Operating income reached ¥3.30 billion, with EBITDA margin at 6.29%.

• Basic and diluted EPS both at ¥0.32, up from ¥0.28 and ¥0.27 respectively year-over-year.

• Total assets increased 4.43% to ¥129.23 billion; net assets stable at ¥57.14 billion.

• Non-recurring gains totaled ¥839.61 million, mainly from asset disposals and government grants.

Outlook and guidance

• Engineering machinery sector expected to continue bottoming out with stable equipment utilization.

• Overseas demand remains robust, especially in Belt and Road markets.

• Domestic agricultural machinery market faces short-term pressure, but high-end and smart products show growth potential.

• Risk of commodity price and exchange rate volatility remains.