Hilong (1623) H1 2025 earnings summary

Executive summary

• Revenue for 1H2025 was RMB2,322.5 million, down 5.8% year-over-year, mainly due to declines in oilfield equipment manufacturing and services.

• Gross profit fell 30.6% to RMB401.4 million, with gross margin dropping to 17.3% from 23.5% a year earlier.

• Net loss attributable to equity owners was RMB324.2 million, compared to a profit of RMB46.0 million in the prior year period.

• Offshore engineering services revenue surged 86.0% year-over-year, offsetting some declines in other segments.

• The company is advancing technological innovation, digital transformation, and international market expansion.

Financial highlights

• Gross profit margin declined to 17.3% in 1H2025 from 23.5% in 1H2024.

• Oilfield equipment manufacturing & services revenue was RMB716.6 million; oilfield services RMB843.7 million; offshore engineering services RMB762.2 million.

• Net loss for the period was RMB324.9 million, with a basic loss per share of RMB0.1911.

• Administrative expenses rose 4.9% to RMB243.8 million, while selling and marketing expenses decreased 31.2% to RMB43.4 million.

• Cash and cash equivalents stood at RMB583.4 million as of 30 June 2025.

Outlook and guidance

• Management is optimistic for the second half of 2025, expecting stable investments in crude oil extraction and continued international expansion.

• Plans include further development of high-end products, expansion in the Middle East, US, and Southeast Asia, and strengthening of digital and intelligent operations.

• The company aims to improve profitability through cost control, technological innovation, and new business models.

• Offshore engineering to pursue EPCIC projects and expand in Southeast Asia, Middle East, and South America.