SZF reported net profit showed strong growth of 11.56% in H1 2025

On August 19, SZZH. disclosed its 2025 semi-annual report. Despite a complex international market environment and industry pressures, the company achieved operating revenue of 357 million yuan in the first half of the year, a slight year-on-year decrease of 0.33%. However, net profit attributable to shareholders of the listed company reached 82.56 million yuan, an increase of 11.56% year-on-year.

The report shows that SZZH.'s operating revenue declined year-on-year, primarily due to external factors such as international market volatility, great power competition, regional conflicts, and tariff shocks, with significant pressure on its export business. However, by optimizing its strategic layout and promoting a "dual-drive" strategy of domestic and international expansion, the company achieved progress in its own brand and domestic substitution businesses, driving profit growth against the trend. Due to exchange rate fluctuations, the company's foreign exchange gains increased significantly in the first half of the year, becoming a key driver of profit growth. Thanks to refined management, cost reduction and efficiency improvement, and technological innovation, overall operating quality has improved.

In terms of core business, the company's bearing product revenue increased by 0.34% year-on-year, and rolling element revenue increased by 1.93% year-on-year. However, rolling element operating costs increased by 8.91%, exceeding the revenue growth, primarily due to changes in sales structure and pressure from product price reductions. Overall, the company's core business remained stable. Despite some squeeze on profit margins, it still achieved a relative balance between revenue and profit.

As an innovative manufacturing enterprise deeply engaged in the needle roller bearing field, SZZH has long focused on the research, development, production, and sales of needle roller bearings and rolling elements. During the reporting period, the company continued to increase its R&D investment, emphasizing technological innovation and product upgrades to maintain its competitive advantage in the industry. At the same time, the company actively promoted intelligent transformation and digitalization, improving production efficiency and product consistency through intelligent production lines and data-driven management, further enhancing its market competitiveness.

Faced with a complex international landscape, the company firmly pursues a "dual-drive" strategy of domestic and international expansion. On the one hand, it continues to deepen its presence in the international market and maintain partnerships with high-quality global customers; on the other hand, it accelerates its expansion into the domestic market, actively responding to the national strategy of independent control and domestic substitution. Leveraging its technological advantages and refined management, the company is expected to further increase its share of the domestic market.