Morimatsu International Holdings Company Limited (MORIMATSU INTL) reported FY2025 results for the year ended 31 December 2025.
Revenue was largely unchanged at RMB 6.95 billion, edging up 0.10% from FY2024. Gross profit contracted 11.40% to RMB 1.82 billion as the gross margin slipped to 26.1% from 29.5%, reflecting higher installation, labour and impairment costs alongside selective pricing adjustments in competitive markets.
Net profit declined 19.90% year-on-year to RMB 584.29 million, pulling the net margin down to 8.4% (FY2024: 10.5%). EBITDA fell 13.00% to RMB 971.21 million. Basic earnings per share decreased to RMB 0.49 from RMB 0.62.
Order-book momentum accelerated: new orders rose 43.56% to RMB 8.57 billion, lifting the backlog of contracted but undelivered work to RMB 8.57 billion at end-2025 (FY2024: RMB 7.11 billion).
Industry-level revenue movements were mixed. Pharmaceutical & biopharmaceutical sales grew 40.5% to RMB 2.23 billion, and family-care business surged 178.8% to RMB 655.43 million. Conversely, electronic chemical and chemical segments fell 68.1% and 23.7% respectively. Gross-margin compression was most pronounced in chemicals (-7.3 ppt) and electronic chemicals (-3.1 ppt) owing to competitive pricing and one-off quality-related costs.
Operating expenses moved higher: selling & marketing costs climbed 29.8% to RMB 213.21 million, and general & administrative expenses increased 16.7% to RMB 659.38 million, partly due to overseas team expansion and new facility depreciation. R&D spending fell 22.3% to RMB 310.39 million after re-prioritisation of projects.
Morimatsu closed the year with cash and bank deposits of RMB 3.13 billion, up RMB 536.62 million. Contract assets rose 72.4% to RMB 1.62 billion, while inventories declined 8.4% to RMB 730.42 million. Interest-bearing borrowings expanded to RMB 331.58 million, lifting the gearing ratio to 5.7% (end-2024: 4.1%).
Capital deployment during the year included new subsidiaries in Malaysia, Italy, India and Thailand, a controlling stake in Switzerland-based Bioengineering AG, and a minority stake in Shanghai MoriSora Technology Co., Ltd.
The Board proposes a final dividend of HKD 0.20 per share, subject to shareholder approval at the 25 June 2026 AGM, following an interim distribution of HKD 0.15 per share already paid in 2025. Payment is scheduled for 27 July 2026 to shareholders on record as of 14 July 2026.
Morimatsu notes ongoing macro-economic and geopolitical uncertainties but highlights its diversified industry footprint and strong order intake as key supports for future operations.