Chongqing Machinery & Electric (2722) investor relations material

Executive summary

• Revenue rose 11.9% year-over-year to RMB10,044.4 million, with gross profit up 3.6% to RMB1,619.2 million and profit attributable to shareholders surging 76.9% to RMB763.9 million. Earnings per share increased 75% to RMB0.21.

• Growth was driven by strong performance in clean energy equipment, especially wind power blades, and a significant turnaround in hydropower operations.

• The Group maintained a stable gross margin despite a slight decline due to a higher share of lower-margin products.

Financial highlights

• Operating profit increased 55.8% year-over-year to RMB805.3 million, mainly due to higher investment income from associates and joint ventures.

• Investment income rose 58.4% to RMB789.8 million, driven by improved profitability in the high-horsepower diesel engine business.

• Net cash inflow from operating activities was RMB459.5 million, down from RMB717.7 million in 2024.

• Total assets grew to RMB19,952.3 million, with a current ratio of 1.31:1 and a gearing ratio of 19.5%.

• Final dividend proposed at RMB0.065 per share, with total dividend for the year at RMB0.065 per share (tax inclusive).

Outlook and guidance

• The Group expects continued revenue growth in 2026, supported by policy benefits, product competitiveness, and robust demand in clean energy and intelligent equipment.

• Strategic focus areas include digital transformation, technological innovation, and expansion in domestic and overseas markets.

• Management anticipates steady improvement in high-end smart equipment and stable performance in industrial services.