China Longgong (03339) announced interim results. Profit attributable to shareholders of 773 million yuan increased 22.37% year over year;

According to the Zhitong Finance App, China Longgong (03339) announced interim results for the six months ended June 30, 2025. The group achieved revenue of 6.658 billion yuan (RMB, same below), an increase of 18.98% over the previous year; profit attributable to shareholders was 773 million yuan, an increase of 22.37% over the previous year; and the basic profit per share was 0.18 yuan.

According to the announcement, the Group's financial performance for the six months ended June 30, 2025 was strong. Compared with the same period in 2025, there was a significant increase in earnings, increased profitability and improved profit margins. This success is mainly due to its focus on core business, including R&D, manufacturing and sales of construction machinery products. Despite significant increases in inventories and trade receivables, these changes are broadly in line with sales growth and changes in the sales mix. The sharp reduction in impairment losses on financial assets also had a positive impact on net profit. The increase in secured deposits is due to the expansion of business activities and financing strategies. Overall, these results reflect steady growth in the company's operations and effective control of the financial situation.

As the core pillar of the Group's revenue and profit, the market competitiveness continues to increase. Its sales volume increased sharply by 37.18% year on year, accounting for 47.41% of revenue, up 6.29 percentage points year on year from 41.12% in the same period in 2025; the share of forklift revenue fell to 25.37%, mainly due to the year-on-year decline in sales; the group seized the favorable opportunity of the continuous recovery in demand for excavators at home and abroad and made every effort to expand the market. Sales increased 27.70% year on year, and the share of revenue in the current period increased to 15.50%.

The increase in net profit was mainly due to the Group's vigorous development and improvement of various product lines, continuous development of domestic and overseas markets, and steady growth in production and sales during the reporting period; and the Group's efforts to raise quality control costs achieved remarkable results, and the overall gross margin of products increased year-on-year. The Group achieved remarkable results in developing overseas markets, achieving overseas revenue of 1,979 billion yuan, an increase of 21.18% over the previous year, and achieved the best performance in history.