FOLANGSI (02499) released its audited results for the year ended 31 December 2025. Group revenue rose 8.6% year on year to RMB 1.75 billion, driven by double-digit growth in subscription and maintenance services. Reported net profit dropped 19.4% to RMB 82.22 million due to the absence of a RMB 27.41 million one-off acquisition gain booked in 2024; excluding this item, underlying profit increased 10.3%.

\n\nSegment performance highlighted the company’s strategic shift toward higher-margin services. Intralogistics equipment subscription revenue advanced 13.5% to RMB 903.64 million, while maintenance and repair revenue surged 32.1% to RMB 267.97 million. Sales of equipment and parts fell 5.7% to RMB 577.14 million following a deliberate resource reallocation. Contribution margins were 32.7% for subscription, 41.9% for maintenance, and 20.2% for sales. Overall gross profit improved 13.0% to RMB 523.98 million, lifting the gross margin to 30.0% from 28.8%.

\n\nOperating expenses tracked business expansion: selling and distribution costs rose 16.9% to RMB 116.0 million and administrative expenses rose 16.1% to RMB 220.94 million, reflecting network growth and overseas deployment in Southeast Asia. Finance costs increased 3.2% to RMB 107.80 million as borrowings expanded to fund asset additions and internationalisation.

\n\nCash and cash equivalents stood at RMB 176.30 million, down from RMB 205.39 million. Total interest-bearing debt reached RMB 2.28 billion, with unused credit lines of RMB 3.19 billion, supporting liquidity. The debt-to-asset ratio edged up to 69.6%. Net current liabilities were RMB 514.18 million, and the current ratio remained stable at 0.63.

\n\nThe board proposed no final dividend, compared with RMB 0.0293 per share in 2024, aiming to preserve cash for working capital and growth. The annual general meeting is scheduled for 25 June 2026, with the register of members closing from 22 to 25 June 2026.

\n\nManagement reiterated its four-pillar strategy—network expansion, product diversification, internationalisation and intelligence—targeting a global network of over 1,000 service outlets, deepened presence in Southeast Asia and new markets in the Middle East, and continued development of intelligent intralogistics solutions.