Cosmos Machinery 2025 Net Profit Jumps 87.7% on Double-Digit Revenue Growth

Bulletin Express
Mar 24

Cosmos Machinery Enterprises Limited reported audited results for the year ended 31 December 2025, showing a solid rebound across its core businesses.

Revenue and Profitability • Revenue from continuing operations rose 10.8% year-on-year to HK$2.07 billion, driven mainly by the machinery and industrial consumables segments. • Gross profit increased 12.8% to HK$388.96 million, lifting the gross margin to 18.8% (2024: 18.5%). • Operating profit advanced 49.3% to HK$41.69 million. • Profit for the year from continuing operations surged 87.7% to HK$20.76 million. Basic earnings per share from continuing operations improved to 1.55 HK cents (2024: 0.31 HK cent).

Segment Performance • Machinery manufacturing remained the largest contributor, generating HK$973.64 million in external sales, up 9.4% year-on-year. • Industrial consumables trading delivered HK$505.09 million in sales, rising 27.2%. • Plastic products recorded HK$580.41 million in revenue, edging up 1.2%. • Machinery leasing contributed HK$7.17 million. Combined segment operating profit reached HK$65.87 million; unallocated corporate costs totalled HK$24.18 million.

Geographical Mix Mainland China remained the key market, accounting for 89.1% of total revenue at HK$1.84 billion. Hong Kong, other Asia-Pacific countries, Europe and North America provided the balance.

Cash, Debt and Liquidity • Cash and bank balances stood at HK$578.32 million. • Total bank borrowings were HK$147.50 million, of which 97% are due within one year. • After including HK$8.71 million of lease liabilities, the Group was in a net cash position of HK$422.11 million at year-end (2024: HK$392.07 million). • Net assets edged up to HK$1.33 billion.

Expenses and Other Income Selling and distribution costs grew 7.0% to HK$191.54 million, while administrative expenses increased 2.3% to HK$177.03 million, largely on staff cost inflation. Finance costs declined 24.9% to HK$10.39 million, reflecting lower interest rates. Other income, gains and losses fell to HK$21.30 million, affected by a HK$4.39 million foreign-exchange loss versus a HK$8.47 million gain a year earlier.

Dividend The Board did not recommend a final dividend for 2025, unchanged from 2024.

Post-Balance-Sheet Event In February 2026, an indirect wholly owned subsidiary disposed of its entire interest in Hefei Glamour New Materials Co., Ltd. for RMB4.65 million; the entity has ceased to be a Group subsidiary.

Outlook Management anticipates continued macroeconomic volatility and fierce industry competition in 2026 but remains focused on high-growth sectors such as new-energy vehicles, batteries, medical devices and advanced equipment, while investing in automation and AI-driven solutions to sustain competitiveness.

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