Operations Review
Extracted from Annual Report 2025
"With a solid foundation, extensive track record, and industry recognition, we are fundamentally strong and well-equipped to navigate through."Income Statement
For the year under review, the Group's topline increased by 11.3% to RMB880.3 million from RMB790.8 million in FY2024. This growth was driven primarily by higher sales of tower cranes and components, supported by a rebound in the People's Republic of China ("PRC") market and strengthening demand in the Middle East.
Revenue in the PRC rose 22.3% to RMB382.8 million, accounting for 43.5% of Group revenue, a significant recovery that restored the PRC to its position as our largest revenue contributor. This turnaround reflects improving market conditions and successful execution of our energy sector strategy.
In contrast, revenue from our Asia segment (outside of PRC), primarily Singapore and Hong Kong, grew modestly by 2.9% to RMB322.9 million. This segment contributed 36.7% to Group revenue, down from 39.7% previously, as the Singapore market remained relatively stable with limited demand growth.
The Middle East & Others segment demonstrated strong momentum with revenue rising 23.3% to RMB122.3 million, reflecting successful market development efforts in these regions. However, revenue from the USA & Europe segment declined 19.4% to RMB52.3 million, primarily due to project timing differences and market-specific challenges.
Gross profit rose 10.7% to RMB253.4 million, broadly in line with revenue growth. Gross profit margin remained stable at 28.8% compared to 28.9% in FY2024, demonstrating our ability to maintain pricing discipline despite cost pressures.
The operating environment in FY2025 presented several headwinds that we managed through disciplined cost control and strategic focus. Distribution costs increased 21.2% primarily due to elevated freight rates, a global phenomenon affecting many industries. We continue monitoring these cost pressures closely while implementing measures to optimize supply chain efficiency.
During the financial year, we completed the disposal of our subsidiary in Cambodia as part of our ongoing portfolio optimization. This strategic move allows us to streamline operations and reallocate resources toward higher-growth opportunities in our core markets.
Our financial position remains stable, with total equity of RMB1,020.9 million as at 31 March 2025. We have expanded our rental fleet and invested in new facilities, including securing a 10- year lease for our Hong Kong yard, positioning us well for future growth opportunities.
As a result of the abovementioned, net profit attributable to equity holders stood at RMB33.2 million, down from RMB43.0 million in the prior year. This decrease primarily reflected higher administrative and distribution expenses, increased impairment allowances on receivables, and one-off costs. Nonetheless, the Group maintained profitability despite a challenging global environment.
Driving Innovation, Securing Market Recognition
The Group was also awarded the 2024 Northeast Revitalization Design Award (Silver) for our work on the Non-counterweight Luffing Jib Tower Crane in complex land-based wind power installations. This recognition highlights Yongmao's design innovation and capability to meet specific operational challenges in the renewable energy sector.
Additionally, Yongmao received the 2023 Liaoning Province Science and Technology Progress Award (Third Prize) for the Super Large Fixed Tower Crane project, an affirmation of our sustained R&D efforts and technical achievements in developing high-capacity lifting solutions.
Our operational excellence and customer focus were acknowledged by key industry players. Yongmao was named both "2024 Annual Excellent Supply Chain Partner" and "2024 Annual Excellent Win-Win Partner" by China Energy Engineering Group, recognizing our performance in project fulfillment and strategic collaboration.
The Group was also selected for the "2024 Liaoning Province Specializing in New SMEs" list, further affirming our innovation capabilities and strong positioning among growth-oriented enterprises.
Upholding Health And Safety Standards
Health and safety remain cornerstones of Yongmao's operational priorities. In FY2025, we continued our "Safety Production Month" campaign and implemented regular safety training and monthly safety production meetings. These programmes foster a strong safety culture and operational discipline throughout the organization.
Building on lessons learned during the COVID-19 pandemic, the Group continues refining health and safety protocols to ensure our people and operations remain resilient and responsive. While COVID-19 is now considered endemic, Yongmao maintains readiness to respond swiftly to any future public health developments or operational disruptions.
All staff undergo mandatory workplace safety training courses specifically designed to educate them about potential workplace hazards and safety precautionary measures. Our established system of safety regimes and protocols aims to inculcate a strong safety culture throughout our production workflow, maintaining healthy and safe environments for everyone.
Looking Ahead
While uncertainties persist in the global macroeconomic environment, the Group continues pursuing its long-term strategy with discipline. We remain sanguine about sustained infrastructure and energy-related construction activities, particularly in the PRC, Middle East, and certain Southeast Asian markets.
These industry trends align with Yongmao's strategic focus on innovation and operational excellence, positioning the Group to capitalise on emerging opportunities in the global tower crane market.
Our product pipeline is well-positioned to meet emerging demands, especially for high-capacity and specialized cranes in wind turbine and nuclear energy installations. We will continue investing in R&D, operational capabilities, and strategic partnerships to deliver sustained value to all stakeholders.
With a solid foundation, extensive track record, and industry recognition, we are fundamentally strong and well-equipped to navigate through volatility while capitalizing on growth opportunities. We remain committed to exploring new markets and applications for our tower cranes in key large-scale projects within and beyond the PRC.
On behalf of the Board, I extend sincere appreciation to all shareholders, customers, business partners, and employees for their support, trust, and commitment to Yongmao.
Tian Ruo Nan
Chief Executive Officer