Ruifeng Power Group reports strong first-half growth, boosted by cylinder sales

Ruifeng Power Group announced a substantial increase in revenue and profit for the six months ended June 30, 2025. Revenue rose by 27.7% to RMB550,178,000, up from RMB430,971,000 in the corresponding period of 2024. Profit attributable to equity shareholders climbed by 23.4% to RMB17,350,000, compared to RMB14,062,000 previously, resulting in basic earnings per share of RMB2.17 cents. Gross profit increased by 21.3% to RMB62,017,000.

The growth was primarily fueled by an 8.9% increase in cylinder block sales revenue, reaching RMB372,950,000, and a 65.5% rise in cylinder head sales revenue to RMB139,664,000. Sales volume for cylinder blocks in passenger vehicles surged by 46.6%, while cylinder heads saw a 70.8% increase in sales volume, largely due to demand from new energy vehicles. The company also expanded its production capabilities by adding a new mechanical processing line.

However, the net profit margin slightly decreased from 3.3% to 3.2%, attributed to a decline in gross profit margins for cylinder blocks. The gearing ratio increased to 37.0% from 31.8% at year-end 2024, reflecting higher interest-bearing borrowings. Capital expenditure for the period was RMB82,695,000, primarily for new processing lines and equipment upgrades.