Financials
CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2025
Financials Archive
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Condensed interim financial statements For the six months ended 30 September 2025
Condensed interim consolidated statement of profit or loss and other comprehensive income
NM: Not Meaningful
Condensed interim statements of financial position
Review of Income Statement of the Group
First Half FY2026 ("1H FY2026") vs First Half FY2025 ("1H FY2025")
Revenue
Group revenue decreased by 20.4% to RMB369.3 million in 1H FY2026 as compared to RMB463.8 million in 1H FY2025. Revenue from sales of tower cranes and components decreased by RMB95.2 million from RMB328.7 million in 1H FY2025 to RMB233.5 in 1H FY2026. Rental and service income slightly increased by RMB0.7 million to RMB135.8 million in 1H FY2025.
Revenue from Asia (outside of the PRC) decreased by RMB64.8 million to RMB130.9 million in 1H FY2026, compared to RMB195.8 million in the same period last year. This was primarily due to a reduction in tower crane sales in Hong Kong. Similarly, revenue from the USA & Europe and the Middle East & others fell by RMB40.3 million and RMB34.8 million, respectively. These declines were partially offset by a RMB45.4 million increase in PRC revenue to RMB202.0 million, driven by higher demand from the power generation industry.
Overall, sales in the PRC and Asia (outside the PRC) contributed to 54.7% (1H FY2025: 33.8%) and 35.5% (1H FY2025: 42.2%) respectively of the Group revenue in 1H FY2026.
Gross profit and gross profit margin
Gross profit saw a decrease of RMB36.6 million, falling to RMB104.5 million in 1H FY2026 from RMB141.1 million in 1H FY2025. This 25.9% decline was in line with the decrease in revenue.
The gross profit margin contracted from 30.4% to 28.3%. This was primarily caused by an unfavorable sales mix shift, specifically the decline in sales of our higher-margin luffing model. As this product carries a higher margin, its reduced volume had a negative effect on overall profit margin.
Other income
Other income decreased by RMB3.1 million to RMB2.3 million in 1H FY2026 as compared to RMB5.4 million in 1H FY2025. The decrease is mainly due to the absence of one-off government subsidies and rebates of RMB2.0 million which were received from the PRC authorities in 1H FY2025. In addition, interest income was lower during the period under review.
Operating expenses
Total operating expenses decreased 13.2% to RMB112.1 million in 1H FY2026 as compared to RMB129.2 million in 1H FY2025.
Distribution costs decreased 17.0% to RMB46.9 million in 1H FY2026 as compared to RMB56.5 million in 1H FY2025 mainly due to lower freight cost, in line with lower sales.
Administrative expenses increased by 5.2% to RMB41.6 million in 1H FY2026 as compared to RMB39.5 million in 1H FY2025. The increase is mainly due to higher employee costs.
Other operating expenses decreased by RMB11.9 million to RMB11.1 million in 1H FY2026, down from RMB23.0 million in 1H FY2025. A key contributor to this decline was a one-time RMB5.5 million debt write-off from Yongmao Machinery (Cambodia) Co., Ltd. ("YMC") subsequent to the disposal of our interest in the previous year. Furthermore, the provision for doubtful debts decreased to RMB5.2 million compared to RMB9.1 million in 1H FY2025. An additional factor was a lower foreign exchange loss, which decreased to RMB4.7 million from RMB5.8 million.
The exchange loss for 1H FY2026 arose mainly from the weakening of Hong Kong Dollars ("HKD") against Renminbi ("RMB") due to net RMB liabilities in Hong Kong subsidiary’s book; and the weakening of USD against RMB and SGD due to net USD assets in the PRC’s and Singapore’s subsidiary’s book.
Finance costs increased by 23.1% to RMB12.3 million in 1H FY2026 as compared to RMB10.2 million in 1H FY2025 due to higher average borrowings and interest expense from leased assets related to right-of-use (ROU) assets.
Taxation
The Company reported an income tax credit in 1H FY2026, consistent with the pre-tax loss incurred. This contrasts with an income tax expense of RMB6.6 million recorded in the prior-year period.
Other comprehensive income/(expenses)
The Group reported other comprehensive loss of RMB21.6 million in 1H FY2026 as compared to other comprehensive income of RMB26.9 million in 1H FY2025. Other comprehensive loss pertains to RMB20.4 million fair value loss of financial assets, FVOCI and exchange translation loss of RMB1.2 million arising from translation of the net assets of our Hong Kong and Singapore subsidiaries.
HKD depreciated 2.0% and SGD appreciated 3.0% against RMB as at 30 September 2025 as compared to the last financial year end.
(Loss)/Profit before taxation and net (loss)/profit attributable to equity holders of the Company
As a result of the above, the Group recorded a loss before taxation of RMB5.3 million in 1H FY2026 as compared to a profit before taxation of RMB21.5 million in 1H FY2025.
Net loss attributable to equity holders of the Company amounting to RMB2.5 million in 1H FY2026 decreased from net profit attributable to equity holders of the company of RMB11.0 million in 1H FY2025.
Review of Financial Position of the Group
Non-current Assets
Non-current assets decreased by RMB40.4 million to RMB1,043.1 million as at 30 September 2025 mainly due to lower financial assets, at FVOCI and lower non-current trade receivables, and lower property, plant and equipment.
The Group's net carrying amount of property, plant, and equipment decreased by RMB7.6 million, driven by a reduction in rental fleets and depreciation. This was partially offset by capital expenditures on the new Hong Kong yard.
Deferred tax assets arose mainly from provisions and elimination of unrealised profits in intragroup sales and the various provisions made.
Financial assets, at FVOCI decreased with a fair value loss of RMB20.4 million as at 30 September 2025.
Current Assets
Current assets decreased by RMB2.2 million to RMB1,162.8 million as at 30 September 2025 mainly due to lower cash and cash equivalents (see Note on Cash Flow Statement below), partly offset by higher trade and other receivables, higher inventories and higher amount owing by related parties.
Inventories increased by RMB24.7 million to RMB379.3 million as at 30 September 2025 as compared to RMB354.6 million as at 31 March 2025. This higher inventory is mainly due to support for deliveries in the coming period.
Trade and other receivables increased by RMB11.1 million to RMB567.1 million as at 30 September 2025. Higher trade receivables is due to slower repayment in the PRC.
Non-current Liabilities
Non-current liabilities decreased to RMB168.6 million as at 30 September 2025 from RMB177.2 million as at 31 March 2025. The decrease was due to lower borrowings of RMB6.4 million and lower deferred tax liabilities.
Deferred tax provision was mainly made for withholding tax levied on dividends of undistributed earnings of PRC subsidiaries, accelerated tax depreciation on inter-company sales of tower cranes used as rental fleet.
Current Liabilities
Current liabilities decreased by RMB2.6 million to RMB1,047.8 million as at 30 September 2025 as compared to RMB1,050.4 million as at 31 March 2025 mainly due to lower borrowings and tax payable, partly offset by higher trade and other payables and higher advances from related parties.
Total Equity
As at 30 September 2025, the Group’s total equity amounted to RMB989.6 million. The decrease was mainly due to total comprehensive loss of RMB26.3 million for 1H FY2026.
Review of Cash Flow Statement
1H FY2026 vs 1H FY2025
The Group reported a net increase in cash and cash equivalents amounting to RMB6.1 million in 1H FY2026 mainly due to:
- Net cash used in operating activities of RMB17.4 million resulted from increase in operating inventories and receivables, interest and taxes paid, partly offset by net operating profit before working capital changes and increase in operating payables,.
- Net cash used in investing activities of RMB10.1 million from acquisition of property, plant and equipment, partly offset by interest received; and
- Net cash generated from financing activities of RMB33.6 million mainly from lower restricted bank balances and higher advances from related parties, partly offset by net repayment of bank borrowings and principal portion of lease liabilities, and dividend paid.
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.
The Group expects the operating environment to be challenging. The Group remains vigilant and committed to exercising cost discipline and will take necessary remedial actions, where possible.
As announced by the Company on 8 September 2023, 13 March 2024, 22 March 2024, 3 April 2024, 2 May 2024, 1 August 2024, 20 November 2024, 1 April 20025, 28 April 2025, 24 September 2025 and 11 July 2025, there have been no material developments concerning the tower crane accident in Hong Kong involving the Company’s 60%-owned subsidiary, Yongmao Machinery (H.K.) Company Limited ("YMHK"), YMHK’s wholly-owned subsidiary, Eastime Engineering Limited ("EEL"), and EEL’s project manager. This includes the cases related to the Relevant Summonses issued by the Labour Department ("LD Summonses") and the Building Department ("BD Summonses"). The Company will provide further updates if there are any material developments.