Shenzhen Zhaowei Machinery & Electronics (003021) Q2 2025 earnings summary

Executive summary

• Revenue for the first half of 2025 reached ¥786.57 million, up 21.93% year-over-year, with net profit attributable to shareholders at ¥113.27 million, a 20.72% increase year-over-year.

• Gross margin for the period was 31.97%, with continued growth in core business segments, especially micro transmission systems and precision parts.

• The company maintained a strong position in high-growth sectors such as smart vehicles, consumer and medical technology, advanced manufacturing, and robotics.

• R&D investment increased by 6.62% year-over-year, supporting new product launches and technological innovation.

Financial highlights

• Operating income: ¥786.57 million, up 21.93% year-over-year.

• Net profit attributable to shareholders: ¥113.27 million, up 20.72% year-over-year.

• Net profit excluding non-recurring items: ¥96.70 million, up 33.39% year-over-year.

• Basic and diluted EPS: ¥0.47, up 20.51% year-over-year.

• Operating cash flow: ¥46.76 million, down 29.52% year-over-year due to increased investment outflows.

• Gross margin: 31.97%, up 0.85 percentage points year-over-year.

Outlook and guidance

• The company will continue to focus on high-growth industries, deepen strategic layout in smart vehicles, medical technology, advanced manufacturing, and robotics.

• Ongoing investment in R&D and global expansion, including the completion of the Suzhou Zhaowei Drive Industrial Park and progress in overseas subsidiaries.

• No interim dividend, bonus shares, or capital reserve to share capital conversion planned for the half-year.