Fu Long Intelligent: Net Profit Plummets by Nearly 70% in First Half, Aims to Raise CNY 7.3 Billion for Precision Transmission Development
August 5th, Fu Long Intelligent Technology Co., Ltd. released its 2025 semi-annual report. The report showed that the company achieved a revenue increase of 0.25% year-on-year to CNY 2.42 billion in the first half, with net profit attributable to shareholders of CNY 322.4 million, down by 68.79% compared to the same period last year.
On the same day as the announcement release, Fu Long Intelligent announced its plan to issue stocks to specific investors and raise no more than CNY 7.3 billion (including this amount) without deducting issuance fees, which will be used in full for the development of new energy automobile precision transmission intelligent manufacturing projects, new generation precision transmission manufacturing projects, precision transmission research center construction projects, and replenishing working capital.
Revenue Up but Profit Under Pressure
Data shows that Fu Long Intelligent was founded in 1995 and its business includes the development, manufacture, and sale of products such as gears, precision reducers, and spare parts, as well as lightweight pneumatic tools. The company is a national high-tech enterprise and a national-level specialized new-type "small giant" enterprise. It listed on the Shenzhen Stock Exchange in 2022.
Since its listing, the company's revenue has been relatively stable, but net profit has continued to decline.
In 2022-2024 and the first half of 2025, Fu Long Intelligent respectively achieved revenues of CNY 4.29 billion, CNY 4.29 billion, and CNY 5.05 billion; corresponding net profits were CNY 4490 million, CNY 2409.07 million, and CNY 1680 million, down by 26.14%, 46.34%, and 30.28% year-on-year.
In the first half of 2025, Fu Long Intelligent's revenue increased by 0.25% to CNY 2.42 billion, but its net profit was CNY 322.4 million, down by 68.79% compared to the same period last year.
The company explained that in recent years, its operating scale has continued to expand, but it is affected by rising costs and declining profitability due to new business development, as well as the increase in assets converted into fixed assets, etc., which has led to fluctuations in profits.
In the reporting period, the company's gear business and pneumatic tool revenue both declined, showing a lack of growth momentum. In the first half of 2025, the company's gear business revenue decreased by 10.31% year-on-year, while its pneumatic tool revenue decreased by 7.28%, with precision reducer product revenue increasing by 13.95%.
In the first half of 2025, Fu Long Intelligent invested CNY 758.13 million in research and development, accounting for 3.13% of its revenue, mainly for the development of new energy transmission, harmonic reducers, etc.
Aims to Raise CNY 7.3 Billion to Strengthen Core Business
On the same day as the announcement release, Fu Long Intelligent announced its plan to issue stocks to specific investors and raise no more than CNY 7.3 billion (including this amount) without deducting issuance fees.
Pursuant to the plan, the company will use the raised funds precisely focus on strategic directions, with CNY 2.7 billion invested in new energy automobile precision transmission intelligent manufacturing projects, planning to produce 9 million units of new energy automobile precision transmission per year, aiming to optimize product structure and accelerate the development of new energy automobile gear market, seizing the benefits of electric vehicle transformation.
In addition, CNY 2.2 billion will be invested in new generation precision transmission manufacturing projects, with a planned production capacity of 18,000 units of harmonic reducers, 20,000 units of small and micro-scale reducers, and 6,000 units of planetary reducers per year, aiming to expand the production capacity of precision reducers and enrich product structure and broaden application scenarios in fields such as robotics.
Furthermore, the company will invest CNY 4 million in the construction of a precision transmission research center project, focusing on key technologies such as mechatronics integration, and building a technological moat to support product iteration and breakthroughs in emerging fields.
Fu Long Intelligent believes that with smart manufacturing becoming an important trend in future manufacturing development, high-end, small-scale, and intelligentized gears will be the inevitable direction of industry upgrading for the gear industry as a foundation component of smart manufacturing.
Regarding its future development strategy, Fu Long Intelligent stated that it will first focus on market expansion, while maintaining its competitive edge in electric tools; secondly, technology innovation, with the company always considering technology innovation as a driving force since its inception; and thirdly, industrial chain extension, continuously expanding new businesses based on its core business of small-scale gears.