Gross profit increased by 58.4% to RMB 2.2 billion (US$ 317.0 million), up from RMB 1.4 billion in
2H 2024. Gross margin increased to 18.9% in 2H 2025, compared with 15.9% in 2H 2024. The increase was mainly due to higher unit sales volume, a change of sales mix with higher unit sales of heavy-duty and high-horsepower ("HHP") engines, and continuing cost reduction initiatives.
Other operating income decreased by 44.1% to RMB 224.5 million (US$ 31.9 million), compared with RMB 401.5 million in 2H 2024. The decrease was mainly due to lower government grants.
Research and development (“R&D”) expenses increased by 48.0% to RMB 874.9 million (US$ 124.5 million), compared with RMB 591.1 million in 2H 2024, mainly driven by higher experimental costs, increased personnel expenses, higher mold costs, and impairments related to fuel cell development. Total R&D expenditure, including capitalized costs, was RMB 974.2 million (US$ 138.6 million), representing 8.3% of the revenue in 2H 2025, as compared with RMB 726.0 million, or 8.2% of the revenue in 2H 2024.
Selling, general and administrative (“SG&A”) expenses increased by 4.9% to RMB 1.1 billion
(US$ 157.7 million) from RMB 1.0 billion in 2H 2024. This increase was mainly due to increased personnel expenses and higher consultancy fees, partially offset by lower accounts receivable provisions compared with the same period last year. SG&A expenses represented 9.4% of the revenue in 2H 2025, compared with 12.0% for 2H 2024.
Operating profit rose by 193.1% to RMB 469.2 million (US$ 66.7 million) from RMB 160.1 million in
2H 2024. Operating margin was 4.0%, compared with 1.8% in 2H 2024. The increase was generated by higher unit sales volume, a change of sales mix with higher unit sales of heavy-duty and HHP engines, and lower SG&A expense as percentage of the total revenue.
Finance costs decreased by 20.2% to RMB 29.6 million (US$ 4.2 million) from RMB 37.1 million in
2H 2024, primarily due to lower bank term loans and reduced bills discounting.
The share of financial results of the associates and joint ventures decreased by 15.1% to RMB 49.7 million (US$ 7.1 million), compared with RMB 58.5 million in 2H 2024. The decrease was mainly due to reduced profits at Y&C Engine Co., Ltd.
Income tax expense was RMB 213.5 million (US$ 30.4 million), compared with RMB 26.4 million in
2H 2024. The tax increase was due to higher profits in 2H 2025 as compared with 2H 2024, and higher deferred tax expenses.
Net profit attributable to equity holders of the Company increased by 107.4% to RMB 171.6 million (US$ 24.4 million), compared with RMB 82.7 million in 2H 2024.
Basic and diluted earnings per share were RMB 4.57 (US$ 0.65), compared with RMB 2.19 in 2H 2024.
Basic and diluted earnings per share for 2H 2025 and 2H 2024 were based on the weighted average of 37,518,322 shares and 37,809,894 shares, respectively.