Chongqing Machinery & Electric Co., Ltd. Issues Strong Profit Alert for FY2025

Key Highlights from the Announcement

• Significant Profit Growth Expected: The Company anticipates that profit attributable to shareholders for the year ended 31 December 2025 will increase by approximately 70% to 75% compared to the previous year (2024).
• Main Growth Drivers:
  • High Horsepower Engine Business & Ultra High Voltage Transformer Business: Both segments have actively captured domestic and overseas market opportunities, leading to substantial profit growth and a significant rise in investment income.
  • Hydropower Business Turnaround: The hydropower segment has shifted from a loss-making position to profitability, further enhancing the Group’s overall operational efficiency and effectiveness.
  • Continued Lean Management: The Group’s commitment to lean management practices has contributed to improved performance across its business units.
• Unaudited Figures: The profit figures are based on a preliminary review of unaudited consolidated management accounts. The numbers have not been reviewed or audited by the Company’s auditors or audit committee.

Important Information for Shareholders and Investors

• The Company expects to publish its full audited annual results for the year ended 31 December 2025 on 20 March 2026. Investors are advised to review the forthcoming results announcement for comprehensive details.
• Cautionary Note: Shareholders and potential investors should note that the information in this profit alert is preliminary. It is advised to exercise caution when dealing in the Company’s securities, as these figures could have a material impact on the Company’s share price.
• The announcement was authorized by the Board, with Chairman and Executive Director Mr. Yue Xiangjun signing off on 10 March 2026.
• As of the announcement date, the Board comprises:
  • Executive Directors: Mr. Yue Xiangjun, Mr. Qin Shaobo, Mr. Deng Rui
  • Non-Executive Directors: Mr. Lei Bin, Ms. Zhu Ying, Mr. Cai Zhibin
  • Independent Non-Executive Directors: Mr. Ke Rui, Mr. Liu Lijun, Ms. Pu Huayan, Mr. Wong Chun Wa

Potential Share Price Impact

The anticipated 70%-75% year-on-year profit growth is a significant positive development for Chongqing Machinery & Electric Co., Ltd. The strong performance in core business segments and the turnaround in the hydropower business are material factors that may drive investor sentiment and potentially support a re-rating of the Company’s shares. Shareholders should closely monitor the upcoming audited results and further management commentary for additional insights.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. Investors are urged to consult the Company’s official announcements and conduct their own due diligence before making any investment decisions. The profit figures referenced are unaudited and subject to change upon final review and audit.

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