CIMC Group profit jumps despite revenue dip in first half

China International Marine Containers Group has reported a strong increase in profitability for the first half of 2025, with a 47.6 per cent surge in net profit despite a slight decline in overall revenue. The Chinese manufacturing conglomerate’s performance was driven by a significant profit turnaround in its offshore engineering business and solid growth in its energy equipment division, which helped to offset weaker results elsewhere.

The group’s revenue for the six months ending June 30 was CNY76.1 billion ($10.5 billion), a decrease of 3.8 per cent from the CNY79.1 billion recorded in the first half of 2024. However, a 5.9 per cent reduction in the cost of sales, a key outgoing, contributed to a net profit attributable to shareholders of CNY1.28 billion, up from CNY866 million in the prior-year period.

The results show a mixed performance across the group's diverse business segments. The core container manufacturing business saw its revenue fall by almost 13 per cent, though its net profit grew by over 13 per cent. The road transportation vehicles business reported an 8.9 per cent drop in revenue and a 28.9 per cent fall in net profit.

In contrast, the energy, chemical and liquid food equipment business posted a 7.3 per cent rise in revenue and a 90.3 per cent jump in net profit. The offshore engineering business was a standout performer, swinging to a net profit of CNY281 million from a loss of CNY84 million a year earlier.

Looking ahead, the company stated that while uncertainty surrounding US tariff policies will continue to fuel concerns about global economic growth, the demand for new containers is expected to be underpinned by stable fundamentals in 2025. The board did not propose an interim dividend.