Sany Heavy Equipment International Holdings Issues Positive Profit Alert for FY2025

Sany Heavy Equipment International Holdings Company Limited (Stock Code: 631) has released a positive profit alert for the financial year ended 31 December 2025, signaling a significant improvement in its financial performance. This announcement is likely to be price sensitive and of high importance to shareholders and potential investors.

Key Highlights

• Substantial Net Profit Growth: The company expects its unaudited annual net profit for FY2025 to be between RMB1,600.0 million and RMB1,850.0 million, representing a remarkable increase of 49.8% to 73.2% compared to FY2024.
• Major Factors Driving Profit Surge:
  • Sharp Decrease in Impairment Losses:
    • In FY2024, the company recorded a goodwill impairment loss of approximately RMB470.4 million related to its oil and gas equipment business, and a further impairment loss of about RMB277.9 million on properties for sale.
    • For FY2025, the goodwill impairment loss was significantly reduced to about RMB72.1 million, and no further impairment loss was recorded on properties for sale.
  • Strategic Business Expansion:
    • The Group actively pursued a strategy focused on globalization, digital intellectualization, and low-carbonization. As a result, revenue from large port machinery, power batteries, and overseas mining trucks saw continuous growth during the period.
  • New Revenue Stream from Lithium Business Acquisition:
    • On 22 July 2024, Sany Heavy Equipment completed the acquisition of a lithium business, which has since started contributing to the Group’s revenue, marking a new and potentially significant growth driver for the company.

Important Information for Shareholders

• Preliminary Figures: The announced profit figures are based on a preliminary review of the Group’s unaudited consolidated management accounts. These have not yet been audited or reviewed by the auditors, nor approved by the audit committee.
• Share Price Sensitivity: The magnitude of profit growth and reduction in impairment losses, alongside successful strategic initiatives and the new lithium business, are all developments that could have a material impact on the company’s valuation and share price.
• Forthcoming Results Announcement: Investors should note that full audited results will be published in due course in accordance with Hong Kong Stock Exchange Listing Rules.
• Caution Advised: Shareholders and potential investors are advised to exercise caution when dealing in the securities of the company until the audited results are officially released.

Board and Management Update

As of the announcement date, the board comprises:

• Executive Directors: Mr. Zhou Fugui (Chairman), Mr. Liang Zaizhong, Mr. Fu Weizhong
• Non-Executive Directors: Mr. Tang Xiuguo, Mr. Xiang Wenbo
• Independent Non-Executive Directors: Mr. Poon Chiu Kwok, Mr. Hu Jiquan, Mr. Yang Shuyong, Ms. Zhou Lan

Disclaimer: The above summary is based on the company’s official announcement and is provided for informational purposes only. The financial results discussed are preliminary and unaudited. Investors are strongly advised to review the company’s audited results once published and to consult with professional financial advisers before making any investment decisions. The information herein does not constitute investment advice or a recommendation to buy or sell any securities.

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