Moons' Electric H1 2025 profit dips amid relocation, tariff impact

Shanghai Moons' Electric (SSE:603728) held its 2025 semi-annual online performance briefing on September 5, discussing its H1 2025 operating performance. The company’s net profit declined year-on-year due to factors including base relocation, with the Shanghai base moving to Taicang and the Vietnam Phase I plant starting production. The Vietnam plant achieved an output of approximately 1.1 million units in H1 2025, targeting close to 3.5 million units for the full year, reaching 85% of its planned capacity. This led to increased unit fixed costs and a 1.5 percentage point drop in the proportion of overseas revenue, further compressing profit margins.

In the humanoid robotics sector, Moons' Electric has built a "motor+drive+transmission+closed-loop" product platform, enabling mass supply for dexterous hands to upper limb joints. The company has sent samples to over a hundred leading domestic and international complete machine manufacturers, securing some bulk orders. Regarding intelligent driving, the company’s business is expanding at an above-average rate, with core modules like human-vehicle interaction, lidar modules, and steer-by-wire chassis already achieving mass production.

The company's overseas revenue growth was impacted by new tariff policies implemented by the U.S. in April, leading to delayed shipments from customers in the second quarter. Moons' Electric plans to use exchange rate risk management and hedging tools to mitigate the impact of increased RMB exchange rate volatility on its financial performance and operating results.