Aux Electric (2580) H1 2025 earnings summary

Executive summary

• Achieved revenue of RMB20,085.1 million in H1 2025, up 16.7% year-over-year, with net profit attributable to owners at RMB1,872.7 million, a 5.1% increase from H1 2024.

• Growth driven by strong overseas performance, especially in Asia (ex-China), Europe, and South America, with respective revenue increases of 34.5%, 27.8%, and 55.7%.

• Household air conditioners remain the primary revenue driver, supported by product innovation, digital transformation, and a multi-brand strategy.

Financial highlights

• Revenue: RMB20,085.1 million (+16.7% YoY); Net profit: RMB1,872.7 million (+5.1% YoY).

• Gross profit margin decreased to 19.5% from 21.1% due to product mix and higher ODM sales.

• Selling and distribution expenses rose 19.3% to RMB806.6 million; administrative expenses up 7.5% to RMB542.1 million; R&D expenses up 11.7% to RMB312.1 million.

• Net cash from operating activities: RMB1,482.3 million; net cash used in investing: RMB2,000.4 million; net cash from financing: RMB676.2 million.

• Gearing ratio improved to 79.8% from 84.1% at year-end 2024.

Outlook and guidance

• Focus on quality-centered R&D, product innovation, and global expansion, especially in emerging markets.

• Continued investment in digital transformation, channel upgrades, and after-sales service to drive efficiency and customer satisfaction.

• Plans to increase green electricity usage to 18% by 2025 and 30% by 2030, aligning with national carbon goals.