Canny Elevator (002367) Q4 2025 earnings summary

Executive summary

• Revenue grew 8.93% year-over-year to ¥4.45 billion, driven by strong overseas and after-market business, despite a challenging domestic real estate market and intensified industry competition.

• Net profit attributable to shareholders declined 7.56% year-over-year to ¥330.18 million, mainly due to increased competition and higher credit impairment losses.

• Operating cash flow remained stable at ¥520.85 million, up 1.09% year-over-year.

• The company maintained a stable order backlog of ¥6.26 billion, with significant new contracts in rail transit and overseas markets.

Financial highlights

• Gross margin was 28.33%, down 0.42 percentage points year-over-year, reflecting price pressure in new elevator sales, partially offset by higher-margin after-market and overseas business.

• Overseas revenue rose 33.72% year-over-year to ¥442.88 million, with overseas gross margin at 37.36%.

• After-market (installation and maintenance) revenue grew 1.01% year-over-year, with gross margin up 1.8 percentage points.

• Credit impairment losses increased significantly to ¥177.87 million, mainly due to higher overdue receivables.

• R&D expenses increased 6.79% year-over-year to ¥180.5 million, representing 4.06% of revenue.

• Basic and diluted EPS were ¥0.4137, down 7.59% year-over-year.

Outlook and guidance

• The company will focus on expanding after-market services, overseas markets, and high-value segments such as rail transit and home elevators.

• 2026 strategy emphasizes customer satisfaction, operational efficiency, and risk management, with continued investment in R&D and digital transformation.

• Management expects the overall elevator market to stabilize, with growth opportunities in equipment renewal and differentiated segments.