Sany Heavy Industry's net profit attributable to the parent company is expected to grow by 41.18% in 2025, Yu Hongfu's salary increased by 1 million, with an annual salary of 8.1 million far surpassing peers, but R&D investment has declined.

Zoomlion (600031.SH) recently released its 2025 annual report. During the reporting period, the company achieved operating revenue of 89.23B yuan, a year-on-year increase of 14.73%; net profit attributable to the parent company of 8.41B yuan, a year-on-year increase of 41.18%; and non-recurring net profit attributable to the parent of 8.22B yuan, a year-on-year increase of 54.13%. The company plans to distribute a cash dividend of 1.8 yuan (tax included) for every 10 shares to all shareholders. Overall, performance shows a trend of “both volume and profit rising,” with continuous growth in overseas market contribution.

Net profit growth far exceeds revenue, cash flow performance is outstanding

In 2025, Zoomlion’s profitability achieved a comprehensive leap. The annual report shows the company’s gross profit margin reached 27.54%, an increase of 1.11 percentage points year-on-year; net profit margin was 9.51%, up 1.7 percentage points. The weighted average return on equity (ROE) reached 11.18%, an increase of 2.66 percentage points. In terms of expense control, the company’s period expense ratio was further optimized, with significant results in cost reduction and efficiency improvement.

Operating cash flow performed especially well. In 2025, the net cash flow from operating activities reached 19.98B yuan, a year-on-year increase of 34.84%, setting a record high. The strong growth in operating cash flow reflects the company’s continuous improvement in collection ability and operating quality, providing solid financial support for future capital expenditures and strategic deployment.

From the product structure perspective, all five major categories of the company achieved positive revenue growth, further consolidating its industry leading position. Excavation machinery achieved sales revenue of 34.5 billion yuan, a year-on-year increase of 14%, maintaining the top sales volume in the domestic market for 15 consecutive years; concrete machinery achieved sales revenue of 15.7 billion yuan, up 10%, ranking first globally for 15 consecutive years; crane machinery achieved sales revenue of 15.6 billion yuan, up 19%, with global market share steadily rising; road machinery achieved sales revenue of 3.8 billion yuan, up 25%, with overseas growth exceeding 30%; pile machinery achieved sales revenue of 2.8 billion yuan, up 36%, with domestic market share of rotary drilling rigs remaining first.

Overseas revenue accounts for over 60%, “product exports” advancing toward “industry going global”

Internationalization is the core driving force behind Zoomlion’s 2025 performance growth. The annual report shows the company’s international main business revenue reached 55.86B yuan, a year-on-year increase of 15.14%, accounting for about 64% of total revenue. This proportion has further increased compared to 2024, marking that the company’s globalization strategy has moved from “product exports” to a new stage of “industry going global.”

Regionally, overseas markets are showing a multi-point blooming trend. As the largest overseas market, Asia-Pacific achieved revenue of 23.89 billion yuan, up 16.17%; Africa continued its high-growth trend, with revenue around 8.31 billion yuan, a growth rate of 55.29%; the Americas achieved revenue of 11.16 billion yuan, up 8.52%; Europe achieved revenue of 12.5 billion yuan, up 1.5%. The acceleration of mining and infrastructure investments in emerging markets such as Africa and Southeast Asia provides broad incremental space for Chinese construction machinery manufacturers.

The profitability quality of overseas business is also steadily improving. In 2025, the gross profit margin of overseas business increased to 31.64%, an increase of about 1.9 percentage points year-on-year, surpassing the domestic market by nearly 11 percentage points, mainly benefiting from the expansion of overseas sales scale, product structure optimization, and continuous implementation of cost reduction and efficiency measures.

Notably, on October 28, 2025, Zoomlion was officially listed on the main board of the Hong Kong Stock Exchange, successfully establishing a dual-platform listing pattern of A+H shares, opening a new chapter of internationalization. By the end of 2025, the company’s overseas product sales covered more than 150 countries and regions, with in-depth cooperation with over 400 high-quality overseas distributors in more than 100 countries and regions worldwide, deploying 1,900 marketing and service outlets, and employing over 3,000 overseas service engineers, building a highly competitive global sales and service network.

Explosion of new energy business, intelligent transformation builds long-term momentum

Zoomlion is actively promoting a dual strategy of electrification and intelligent transformation on the basis of consolidating its traditional core advantages, with significant results achieved in 2025. In terms of electrification, the company’s new energy products saw explosive growth in 2025, with annual sales reaching 8.64 billion yuan, a year-on-year increase of 115%, with electric mixers and electric dump trucks becoming core growth drivers. Currently, the company is fully promoting low-carbon upgrades across all product categories such as construction vehicles, loading machinery, excavators, and cranes, focusing on three major technical routes: pure electric, hybrid, and hydrogen fuel, continuously iterating and optimizing the new energy product matrix.

In the field of intelligent and digital transformation, Zoomlion continues to deepen its layout of intelligent manufacturing, having built and put into operation 37 “lighthouse factories,” effectively promoting improvements in production efficiency and product quality. Meanwhile, the company has established 37 manufacturing bases globally, deeply improving its overseas supply chain system, and actively promoting the application and upgrading of Chinese intelligent manufacturing standards abroad. In core technology R&D, the company deepens its自主研发 of “three electric” systems, with its self-developed integrated electric drive axle technology successfully breaking through the transmission efficiency bottleneck of traditional equipment, achieving large-scale application in flagship products such as mixers; based on自主开发 of distributed vehicle control units, it has achieved deep integration of electric drive control, overall energy management, and working condition adaptive algorithms.

R&D investment is a key support for the core competitiveness of construction machinery companies. However, Zoomlion’s investment level has decreased compared to last year. The financial report shows that in 2025, R&D expenditure totaled 5.17B yuan, down 319 million yuan from 5.49B yuan in 2024; the proportion of R&D investment to operating revenue also decreased from 7.06% in 2024 to 5.79%.

It is worth noting that the total compensation of President Yu Hongfu saw a significant increase in 2025, from 7.0771 million yuan in 2024 to 8.1003 million yuan.

Compared with other industry executives’ compensation: XCMG’s President Lu Chuan earned 3.35M yuan in 2024 (2025 data not disclosed); Zoomlion’s Chairman and CEO Zhan Chunxin’s 2025 salary was 2.51M yuan, and Co-Presidents Wang Yongxiang and Luo Kai earned 2.4984 million yuan and 1.9157 million yuan respectively in 2025.