Spring Force: Half-Year Revenue and Net Profit Stable Growth, Third Curve of Growth Gradually Forming | Deep Research Report

On August 12th, Zhejiang Spring Force Co., Ltd. (603129), also known as "Spring Force", released its half-year report for 2025.

The company achieved revenue of 98.55 billion yuan during the reporting period, a year-on-year increase of 30.90%, and net profit attributable to shareholders reached 10.02 billion yuan, an increase of 41.35%. The company's performance continued to show high growth momentum, with year-over-year increases in net profit of 70.43%, 43.65%, and 46.08% since 2022.

Spring Force's main business includes all-terrain vehicles, motorcycles, and e-cars. The company has built a solid foundation in the market through its traditional advantages in all-terrain vehicle sales.

The company's all-terrain vehicle business achieved revenue of 47.31 billion yuan during the reporting period, a year-on-year increase of 33.95%. Motorcycle sales reached 33.46 billion yuan, an increase of 3.03%, while e-car sales reached 8.72 billion yuan, a massive growth of 652.06%.

Notably, Spring Force's revenue structure is heavily dependent on overseas markets. According to the company's 2024 annual report, overseas revenue reached 108.06 billion yuan, accounting for 73.61% of total revenue, with income from North America and Europe amounting to 45.35 billion yuan and 40.05 billion yuan, respectively, accounting for more than 50% of total revenue.

A company relying on overseas markets may be affected by trade tensions. What supports the company's stock price?

Globalization Helps Offset Trade Risks

In the first half of 2025, Spring Force's core business segment performed steadily. The company's traditional advantage in all-terrain vehicle sales was particularly eye-catching, with sales reaching 10.18 million units and revenue of 47.31 billion yuan, a year-on-year increase of 33.95%, accounting for 48% of total revenue.

From the industry's overall export situation, according to data from the China Motorcycle Association, the country exported 22.73 million all-terrain vehicles during the first half of 2025, a year-on-year decrease of 0.22%. However, cumulative exports reached 6.61 billion US dollars, an increase of 18.46%.

In terms of export rankings, Spring Force, Tao Tao, and Chongqing Runtong were the top three, accounting for 76.29% and 83.61%, respectively, of total exports.

Among them, Spring Force's all-terrain vehicle exports accounted for 74.05% of the country's total, solidifying its leading position in the industry.

However, it is worth noting that the all-terrain vehicle industry has a high concentration of supply and demand on both sides, with main markets coming from Europe and North America, while supply is concentrated in Japan and the United States, with North America and Europe accounting for more than 50% of the company's total revenue.

As an example, Spring Force's overseas revenue reached 108.06 billion yuan in 2024, accounting for 73.61%, with income from North America and Europe amounting to 45.35 billion yuan and 40.05 billion yuan, respectively, accounting for more than 50% of total revenue.

Given the trade tensions, the company may need to adjust its strategy in response to changes in tariffs.

Facing the pressure of US tariffs, Spring Force's chairman and CEO, Lai Minjie, emphasized at the first-half earnings conference that while tariffs themselves do not directly affect sales, they can push up costs. He stressed that the company's factory in Mexico played a key role in responding to tariff changes. By producing products in Mexico and exporting them to the US, the company can effectively reduce the impact of tariffs; meanwhile, this base can better respond to North American market demand, providing stable production and supply guarantees for the company, while maintaining customer relationships and market share.

Therefore, the company plans to further increase the proportion of products shipped from its Mexican factory to the US market and focus on developing local components and procurement capabilities in Mexico to enhance supply chain flexibility and competitiveness.

Cash Reserves Build a Safety Net

In terms of core business, Spring Force's motorcycle segment performed steadily but with slower growth. The company achieved sales revenue of 33.46 billion yuan during the reporting period, an increase of 3.03%, accounting for 34% of total revenue.

The company's e-car segment, as a new business pillar, focuses on high-end markets and saw its sales skyrocket to 25.05 million units during the reporting period, with revenue reaching 8.72 billion yuan, a massive growth of 652.06%.

Despite its current scale being relatively small, this rapid growth has opened up a new curve for the company's growth.