Construction Machinery Industry Recovery, Shantui Shares 2025 Overseas Revenue Increases 17.94%, Divergence Between Domestic and Foreign Markets Intensifies

On the evening of March 15, among leading construction machinery companies, “Bulldozer King” Shantui Construction Machinery Co., Ltd. (hereinafter “Shantui Co., Ltd.”) (000680.SZ) was the first to disclose its 2025 annual report. The financial report shows that in 2025, the company achieved a total revenue of 14.62 billion yuan, a year-on-year increase of 2.82%; net profit attributable to shareholders was 1.211 billion yuan, up 9.86%.

Notably, in 2025, the company’s domestic and international market performances diverged significantly, with overseas revenue reaching 8.741 billion yuan, a 17.94% increase. However, rapid expansion into overseas markets also brought certain cost pressures. Additionally, due to exchange rate fluctuations causing foreign exchange losses, financial expenses surged by 268.32% year-on-year.

In 2026, Shantui Co., Ltd. plans to achieve a total revenue of 16.1 billion yuan, with overseas revenue targeted at 10.5 billion yuan, continuing to focus on overseas market expansion. Whether the company can balance overseas investments with profitability, respond to industry cycle fluctuations, and advance its subsequent Hong Kong listing plan have become key market concerns. On the morning of March 17, a reporter from Huaxia Times called Shantui Co., Ltd. regarding these issues, but the securities department staff responded, “Unable to comment.”

Revenue of 14.62 billion yuan, net profit up 9.86%

The annual report indicates that in 2025, due to the slowdown of the high-level trend in the construction machinery industry and steady progress, sales of construction machinery improved, and foreign trade grew rapidly, demonstrating strong resilience overall. Against this backdrop, Shantui Co., Ltd. seized structural growth opportunities in the domestic industry and strategic export markets, overcoming challenges such as intensified competition and significant declines in some local markets, with continuous improvement in operating performance and business structure.

In 2025, the company’s core operational data remained solid, with total revenue of 14.62 billion yuan, a slight increase of 2.82% year-on-year; net profit attributable to the parent company was 1.211 billion yuan, up 9.86%; and net profit after deducting non-recurring gains and losses attributable to the parent was 1.187 billion yuan, up 20.28%. As of the end of Q4 2025, Shantui Co., Ltd.'s total assets reached 19.057 billion yuan, a 4.20% increase from the previous year.

The company’s main business revenue mainly comes from the production and sales of bulldozers, excavators, rollers, graders, pavers, milling machines, concrete machinery, loaders, and core components such as crawler chassis assemblies and transmission parts.

During the reporting period, the company’s main business revenue was 13.618 billion yuan, a 5.49% increase, accounting for 93.14% of total revenue, further rising from 90.79% in 2024. In terms of profitability, the company’s gross profit margin of main business increased by 1.43 percentage points year-on-year to 21.71%, with gross profit margin of construction machinery main products rising by 1.68 percentage points to 24.80%.

By industry, in 2025, Shantui Co., Ltd.'s sales of industrial products reached 13.339 billion yuan, up 7.75%; however, sales of commercial products dropped sharply by 47.34% to 279 million yuan. Breaking down by product, main construction machinery products generated 10.95 billion yuan, up 12.15%, accounting for 74.90% of total revenue; sales of construction machinery parts and other products totaled 2.667 billion yuan, down 15.18%.

It is worth noting that the company’s performance in domestic and overseas markets diverged significantly. During the reporting period, overseas revenue was 8.741 billion yuan, a 17.94% increase from 2024, accounting for nearly 60%; meanwhile, domestic revenue declined by 11.29% to 4.876 billion yuan.

The rapid growth of overseas business is closely linked to the company’s ongoing global market deployment. In 2025, overseas warehouses in Indonesia and training centers in Peru were established, subsidiaries in Indonesia and Australia were inaugurated, and the number of overseas subsidiaries reached 13, further improving the overseas operational system. However, overseas expansion also directly increased costs, with sales expenses rising by 5.01% mainly due to increased overseas sales staff salaries; financial expenses soared to 74.1159 million yuan, a 268.32% increase year-on-year, primarily due to exchange rate fluctuations causing significant foreign exchange losses.

From a financial perspective, in 2025, Shantui Co., Ltd.'s net operating cash flow was 781 million yuan, up 51.64%, showing strong performance. However, net cash flow from investing activities was 310 million yuan, a decrease of 434 million yuan from the previous year, a decline of 349.18%, mainly due to increased capital injection into Shandong Heavy Industry Financial Company. Regarding debt structure, both short-term and long-term borrowings decreased year-on-year, making the financial structure more stable.

Additionally, the acquisition of 100% equity of Shandong Heavy Industry Construction Machinery Co., Ltd. (“Shandong Heavy Industry Construction Machinery”) completed in November 2024 yielded significant results in 2025. According to the performance commitment at the time, Shandong Heavy Industry Construction Machinery was expected to achieve a net profit after deducting non-recurring gains and losses attributable to the parent of no less than 125.905 million yuan in 2025; it actually achieved 355.807 million yuan, with a performance completion rate of 282.60%, far exceeding the target.

Outlook for 2026: overseas revenue target of 10.5 billion yuan

“2026 marks the beginning of the ‘14th Five-Year Plan,’ with opportunities and challenges in the development of the construction machinery industry,” Shantui Co., Ltd. stated in its annual report. The industry is investment-driven, cyclical, and heavily influenced by fixed asset investment, macro-control policies, exchange rates, and raw material prices. The company’s bulldozers, excavators, loaders, rollers are mainly used in infrastructure projects such as earthworks, while concrete machinery is used in high-speed rail, bridges, water conservancy, hydropower, and high-rise buildings. Future performance will be more affected by infrastructure development.

Therefore, “it is also clear that external environmental changes pose increasing risks and challenges for the development of the construction machinery industry.” The company emphasized that the international situation is generally tightening, while domestic supply and demand are weak, adding to industry challenges.

Based on industry and market environment assessments, Shantui Co., Ltd. has set its 2026 operational goal, aiming for a total revenue of 16.1 billion yuan, an increase of about 10%. Overseas markets remain a focus, with a target of 10.5 billion yuan in revenue.

Specifically, in 2026, Shantui Co., Ltd. will adopt a “domestic and international” development strategy. It will strengthen the domestic market, achieving growth in both volume and value, while continuing to expand international business, increasing overseas resource investment and key market deployment, focusing on product differentiation and core competitiveness. Additionally, the company plans to broaden financial channels, strengthen risk control, actively cooperate with overseas financing channels, and reduce accounts receivable.

Despite clear strategies, the company acknowledges that fierce global competition in construction machinery and industry cycle fluctuations pose uncertainties. The annual report states that as the international business develops, the internationalization process deepens, and the overseas sales system improves, external factors such as international balance of payments, foreign exchange reserves, political stability, and RMB exchange rate fluctuations could cause discrepancies between settlement or collection amounts and contract values, leading to potential losses.

In response to geopolitical, exchange rate, and industry cycle risks, Shantui Co., Ltd. has also outlined countermeasures. The company is actively promoting strategies in mining, AI, and new energy, and advancing digital and intelligent transformation. Notably, on June 18, 2025, the company launched its global AI brand strategy, integrating artificial intelligence into R&D, manufacturing, procurement, marketing, and service throughout the industry chain to empower industry upgrades.

Based on the 2025 performance, several rating agencies have issued optimistic forecasts for 2026–2028. For example, China Post Securities predicts that Shantui Co., Ltd.'s revenue will reach 16.144 billion yuan, 17.777 billion yuan, and 19.516 billion yuan in 2026–2028, with year-on-year growth rates of 10.43%, 10.11%, and 9.78%, respectively; net profits attributable to shareholders are expected to be 1.499 billion yuan, 1.829 billion yuan, and 2.156 billion yuan, with growth rates of 23.77%, 22.04%, and 17.85%.