Skyworth Group (751) H1 2025 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2025 rose 20.3% year-over-year to RMB36.26 billion, driven by strong growth in new energy and smart household appliances.

• Net profit declined 48.9% year-over-year to RMB365 million, mainly due to margin compression, higher costs, and impairment provisions in the construction development business.

• The group maintained stable operations amid global economic volatility, focusing on innovation, digitalization, and low-carbon transformation.

• No interim dividend was declared, reflecting a focus on future development and capital needs.

• Overseas revenue accounted for 22.2% of total, reaching RMB8.05 billion, reflecting international expansion.

Financial highlights

• Gross profit increased 7.6% to RMB4.47 billion, but gross margin fell to 12.3% from 13.8% due to higher raw material costs and margin pressure.

• EBIT fell 27.6% year-over-year to RMB885 million; EBITDA dropped 18.6% to RMB1,247 million.

• Basic and diluted EPS were RMB5.66 cents, down 65.3% year-over-year.

• Cash and cash equivalents increased 27.3% to RMB10,627 million as of June 30, 2025.

• Total bank borrowings and interest-bearing liabilities increased to RMB19.18 billion; debt to equity ratio rose to 84.4%.

Outlook and guidance

• Management remains cautiously optimistic, focusing on quality, innovation, and technological iteration to sustain growth amid global uncertainties.

• Plans to expand in digitalization, smartization, and low-carbon sectors, with a strong push in new energy and energy storage businesses.

• Emphasis on prudent financial management, asset optimisation, and maintaining a balanced investment portfolio.