Yongmao Holdings 1H FY2026 Financial Results: Revenue Down 20%, No Interim Dividend Declared

Yongmao Holdings Limited: 1H FY2026 Financial Review & Investment Perspective

Yongmao Holdings Limited, a manufacturer and rental provider of tower cranes, reported its unaudited consolidated financial results for the six months ended 30 September 2025 (1H FY2026). This review summarizes the company’s key performance indicators, historical trends, exceptional items, and outlook, with actionable insights for investors.

Key Financial Metrics & Comparative Analysis

Metric	1H FY2026 (30 Sep 2025)	2H FY2025 (31 Mar 2025)	1H FY2025 (30 Sep 2024)	YoY Change	QoQ Change
Revenue (RMB’000)	369,343	(not disclosed)	463,833	-20.4%	N/A
Gross Profit (RMB’000)	104,498	(not disclosed)	141,111	-25.9%	N/A
Net (Loss)/Profit (RMB’000)	(4,750)	(not disclosed)	14,827	NM	N/A
EPS (RMB cents)	(2.76)	(not disclosed)	12.35	NM	N/A
Gross Margin (%)	28.3	(not disclosed)	30.4	-2.1pp	N/A
Dividend per Share (RMB cents)	0.00 (none)	(not disclosed)	0.00 (none)	No Change	N/A
Net Asset Value per Share (RMB)	10.59	10.90	10.90	-2.8%	-2.8%

Historical Performance Trends

Revenue: Down 20.4% YoY, driven by lower tower crane sales in Hong Kong, USA, Europe, and the Middle East, partially offset by higher sales in the PRC.
Gross Margin: Declined from 30.4% to 28.3%, attributed to an unfavorable sales mix and reduced volume of higher-margin products.
Net Profit: Swung from a profit of RMB14.8 million in 1H FY2025 to a loss of RMB4.8 million in 1H FY2026.
Net Asset Value: Fell by 2.8% compared to the previous half-year, reflecting the comprehensive loss for the period.

Exceptional Items & Expenses

Fair Value Loss: RMB20.4 million loss on financial assets at FVOCI, compared to a RMB28.7 million gain last year.
Disposal Impact: Prior period (1H FY2025) included a RMB4.1 million gain on disposal of a subsidiary; no such gain in 1H FY2026.
One-off Expense: 1H FY2025 included a RMB5.5 million bad debt written off, which did not recur in 1H FY2026, contributing to a reduction in other operating expenses.

Cash Flow & Capital Structure

Operating Cash Flow: RMB17.4 million net cash used, mainly due to higher inventories and slower receivable repayment.
Investing Cash Flow: RMB10.1 million outflow for property, plant, and equipment.
Financing Cash Flow: RMB33.6 million net inflow, supported by reduction in restricted bank balances and higher advances from related parties.
Net Cash Movement: RMB6.1 million increase in cash and cash equivalents for the period.

Dividend Policy & Payments

No dividend was declared or recommended for 1H FY2026, consistent with the prior corresponding period.

Related Party Transactions & Corporate Actions

Related party sales and purchases continued, but were not material relative to total revenue.
Eastime Engineering (Macau) Co., Ltd., a 60%-owned subsidiary, was dissolved as part of ongoing rationalization. No material impact is expected on earnings or net assets.

Legal & Regulatory Events

No material developments regarding the Hong Kong tower crane accident involving the company’s subsidiary. Relevant legal cases remain ongoing without significant new disclosures.

Macroeconomic & Industry Commentary

“Our Company’s performance in the current period reflects the challenging macroeconomic environment. With the slowing Chinese economy in 2025, facing major challenges like weak consumer demand, a struggling real estate market, high debt levels, and trade tensions with the US, could further dampen economic activity.
The tower crane market is intensely competitive, with both Chinese and international manufacturers competing for market share. Within China, the construction sector is facing a slowdown, especially in the real estate market, which has traditionally been a major source of demand for tower cranes. Although government-driven infrastructure projects, including transportation networks and renewable energy initiatives, continue to offer some support, overall construction activity growth is expected to remain modest.
Similarly, the Hong Kong property market continues to face significant headwinds, characterized by subdued transaction volumes and a cautious investment climate. This has led to a marked slowdown in private residential and commercial developments, which has directly impacted demand within the construction sector. While government initiatives in public housing and infrastructure provide a degree of stability, the overall pace of new project commencements remains muted.”

Conclusion: Performance & Outlook

Yongmao Holdings delivered a weak set of results for 1H FY2026, with sharp drops in revenue, profit, and assets. The company faces strong macro and sectoral headwinds, particularly in China and Hong Kong, with little sign of near-term improvement. The lack of dividend, shrinking margins, and comprehensive loss pose continued challenges. The management acknowledges a tough outlook, emphasizing cost control and vigilance.

Investor Recommendations

If you currently hold Yongmao shares: Consider reducing or exiting your position unless you have a high risk tolerance or a long-term view on recovery in the construction and tower crane sectors. The absence of dividend and deteriorating fundamentals suggest limited upside in the near term.
If you do not currently hold Yongmao shares: It is prudent to remain on the sidelines until there is clear evidence of a turnaround in operating results or sector conditions. Opportunities may arise in the future if the company demonstrates improved profitability or if macro trends shift favorably.

Disclaimer: This article is based strictly on the company’s published financial statements as of 30 September 2025. It does not constitute investment advice. Investors should consider their own risk profile, conduct further due diligence, and consult a licensed financial advisor before making any investment decisions.