FuDa Group's 2025 First Half Net Profit Reaches 1.46 Billion Yuan, Up 98.77% Year-on-Year | Financial Report

On August 11th, FuDa Group (603166) released its 2025 first half-year report.

In the first half of 2025, the company achieved an operating income of 9.37 billion yuan, up 30.26% year-on-year; and net profit reached 1.46 billion yuan, up 98.77% year-on-year.

In addition, FuDa Group's net profit ratio rose to 15.61%, up from 10.23% in the first half of 2024; its gross profit margin increased to 27.8%, up from 24.04%; and its net asset return rate reached 5.95%, up by 2.66 percentage points.

At the same time, cash flow related to profitability also saw significant growth. In the first half of 2025, the company generated a net inflow of 2.82 billion yuan from operating activities, up 81.28% year-on-year; and its end-of-period liquid assets totaled 2.38 billion yuan, up 47.57%. The company's liquidity is relatively robust.

FuDa Group's good performance is mainly attributed to three factors: first, the growing demand for hybrid drive shafts, particularly in the new energy drive shaft market, which has led to an increase in the company's new energy drive shaft business income; second, the company's continuous efforts to improve efficiency and reduce costs, resulting in significant cost savings; third, the transfer of 25% equity stake in a joint venture to optimize existing resource allocation, leading to increased investment returns.

Data shows that FuDa Group mainly engages in the development, production, and sales of various power transmission components, including automotive drive shafts, precision gears, new energy electric drives, automobile clutches, spiral bevel gears, high-strength bolts, etc. According to the 2024 annual report, the company's top three businesses were drive shafts, precision gears, and clutches, which accounted for 62.87%, 12.1%, and 11.1% of total operating income respectively.

In recent years, under the backdrop of continuous growth in the new energy vehicle market, FuDa Group has transformed its business to focus on the new energy automotive industry, with a main business model centered around new energy hybrid drive shafts, new energy electric drives, precision gears, and robot components. Currently, the company is a major supplier of hybrid drive shafts to several automakers, including BYD (002594), Geely, Great Wall Motors, SAIC General Motors, Dongfeng Motors, Ideal Automobile, etc.