LONKING (03339) announced its interim results, with net profit attributable to shareholders at 773 million yuan, an increase of 22.37% year-on-year.

LONKING (03339) announced its interim results for the six months ended June 30, 2025, with a revenue of RMB 6.658 billion, an increase of 18.98% year-on-year; the profit attributable to shareholders was RMB 773 million, an increase of 22.37% year-on-year; the basic earnings per share were RMB 0.18. The announcement stated that the group achieved strong financial performance for the six months ended June 30, 2025, demonstrating significant revenue growth compared to the same period in 2025, improved profitability, and enhanced profit margins. This excellent result was primarily attributed to its focus on core businesses, including the research, manufacture, and sale of construction machinery products. Despite a significant increase in inventory and trade receivables, these changes generally aligned with sales growth and shifts in the sales mix. A substantial reduction in impairment losses on financial assets also positively impacted net profit. The increase in pledged deposits was due to business expansion and financing strategies. Overall, these results reflect steady operational growth and effective financial management. As the core pillar of the groups operating revenue and profit, the loader business has continued to strengthen its market competitiveness, with sales showing a substantial year-on-year increase of 37.18%. The revenue from loaders accounted for 47.41% of total operating income, an increase of 6.29 percentage points from 41.12% in the same period of 2025; the revenue from forklifts decreased to 25.37%, primarily due to a year-on-year decline in sales; the group seized favorable opportunities from the continuous recovery of domestic and international demand for excavators, fully expanding the market, with sales increasing by 27.70% year-on-year, leading to an increase in its operating revenue proportion to 15.50%. The increase in net profit was primarily due to the group's vigorous development and enhancement of various product lines, continuous expansion into domestic and overseas markets, and steady growth in the scale of production and sales during the reporting period; as well as significant improvements in quality and cost control efforts, leading to an increase in the overall gross profit margin of products year-on-year. The groups efforts to expand into overseas markets have yielded remarkable results, achieving overseas revenue of RMB 1.979 billion, a year-on-year increase of 21.18%, setting a new record for historic performance.