Lonking Holdings Ltd. (Lonking, 03339) reported solid FY2025 results, underpinned by resilient domestic demand and record export sales.
Key Financials • Revenue grew 9.81% year on year (YoY) to RMB11.22 billion. • Gross profit increased 19.95% YoY to RMB2.40 billion; gross margin improved 1.81 ppts to 21.37%. • Profit attributable to owners of the parent rose 27.79% YoY to RMB1.30 billion. • Basic earnings per share (EPS) advanced to RMB0.30 (2024: RMB0.24). • Operating cash inflow reached RMB1.25 billion, while cash and bank balances expanded to RMB4.37 billion. • Net assets climbed 7.27% YoY to RMB11.48 billion; current ratio stood at 2.46 and gross gearing at 32.12%.
Business Mix • Loaders remained the core driver, contributing RMB4.84 billion (43.2% of revenue), up 14.87% YoY. • Forklifts generated RMB3.46 billion (30.8% of revenue), down 7.04% on intensified price competition. • Excavator sales surged 60.15% to RMB1.69 billion, lifting the segment share to 15.1%. • Road rollers and other products provided RMB1.23 billion, broadly stable YoY.
Geographical Performance • Domestic revenue rose to RMB7.41 billion, representing 66.1% of total sales. • Overseas markets delivered RMB3.81 billion, up 19.32% YoY and accounting for 33.9% of group turnover.
Cash & Balance Sheet Highlights • Cash, cash equivalents and time deposits totalled RMB7.09 billion, bolstered by redeemed wealth-management products. • Long-term receivables escalated to RMB480 million, reflecting extended credit terms for higher-value electric equipment. • Capital expenditure was RMB70 million, aligned with ongoing production upgrades.
Dividend The board proposes a final dividend of HKD0.20 per share (approximately RMB756 million), pending shareholder approval at the 28 May 2026 AGM. The register of members will be closed from 3–5 June 2026; payment is scheduled on or before 31 July 2026.
Outlook Management expects China’s 2026 GDP growth target of 4.5%–5% and supportive fiscal and monetary policies to sustain construction-machinery demand. Lonking plans to deepen its focus on four core product lines—loaders, forklifts, excavators and road machinery—while accelerating overseas expansion, electrification and cost-efficiency initiatives to maintain growth momentum and margin improvement.
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