Revenue and Profit - Revenue for the third quarter reached ¥2,338,663,842.42, an increase of 2.83% compared to the same period last year[4] - Total profit for the quarter was ¥628,632,083.51, a decrease of 13.69% year-over-year[4] - Net profit attributable to shareholders was ¥542,419,815.42, down 14.72% from the previous year[4] - The net profit after deducting non-recurring gains and losses was ¥505,560,916.37, a decline of 18.39% compared to the same period last year[4] - Basic earnings per share for the quarter were ¥1.07, down 14.40% year-over-year[5] - Total operating revenue for the first three quarters of 2025 reached ¥6,674,782,115.88, an increase of 8.8% compared to ¥6,133,786,224.15 in the same period of 2024[18] - Operating profit for the first three quarters of 2025 was ¥1,890,945,856.77, up from ¥1,699,372,922.13 in 2024, reflecting a growth of 11.3%[18] - Net profit for the first three quarters of 2025 was ¥1,594,778,809.00, compared to ¥1,461,781,100.96 in 2024, representing an increase of 9.1%[19] - Basic earnings per share for the first three quarters of 2025 were ¥3.15, up from ¥2.88 in the same period of 2024, indicating a growth of 9.4%[19] - The total profit for the first three quarters of 2025 was ¥1,891,440,129.48, compared to ¥1,703,301,642.03 in 2024, indicating an increase of 11.1%[19] - The total comprehensive income for the first three quarters of 2025 was ¥1,586,877,186.61, up from ¥1,080,547,096.82 in 2024, representing a growth of 46.6%[19] Cash Flow - The net cash flow from operating activities for the year-to-date period was ¥221,179,687.22, a significant decrease of 84.93%[4] - Cash flow from operating activities for the first three quarters of 2025 was ¥221,179,687.22, a significant decrease from ¥1,467,247,384.77 in 2024[21] - Net cash flow from investment activities was -$43.09 million, a decrease from $52.17 million in the previous period[22] - Total cash outflow from investment activities increased to $1.76 billion, compared to $1.36 billion last year[22] - Cash inflow from financing activities was $916.10 million, up from $465.00 million in the previous year[22] - Cash outflow from financing activities rose to $1.56 billion, compared to $1.35 billion last year[22] - Net cash flow from financing activities was -$648.24 million, an improvement from -$888.88 million in the previous period[22] - The ending balance of cash and cash equivalents decreased to $4.72 billion from $5.02 billion in the previous year[22] - Cash and cash equivalents net increase was -$408.03 million, a significant decline from an increase of $625.34 million last year[22] - Cash paid for investment activities totaled $1.52 billion, up from $932.23 million in the previous year[22] - Cash paid for financing activities, including debt repayment and dividends, was $1.56 billion, compared to $1.35 billion last year[22] Assets and Liabilities - Total assets at the end of the reporting period were ¥17,048,960,781.72, an increase of 11.04% from the end of the previous year[5] - Shareholders' equity attributable to the parent company was ¥11,113,811,509.60, up 10.75% compared to the previous year[5] - As of September 30, 2025, the total assets of Zhejiang Dingli Machinery Co., Ltd. amounted to CNY 17,048,960,781.72, an increase from CNY 15,353,846,792.64 as of December 31, 2024, representing a growth of approximately 11%[14] - The company's current assets totaled CNY 12,838,198,314.56, up from CNY 11,365,379,993.61, indicating an increase of about 12.9%[14] - The total liabilities increased to CNY 5,932,045,737.97 from CNY 5,315,649,326.73, which is an increase of about 11.6%[16] - The owner's equity reached CNY 11,116,915,043.75, up from CNY 10,038,197,465.91, showing a growth of approximately 10.8%[16] Non-Recurring Gains and Losses - Non-recurring gains and losses for the quarter totaled ¥36,858,899.05, with government subsidies contributing ¥38,822,271.20[7] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 34,125[10] Inventory and Receivables - Accounts receivable rose significantly to CNY 3,603,358,755.97 from CNY 2,309,129,845.46, marking an increase of around 56%[14] - The inventory level rose to CNY 2,964,552,880.79 from CNY 2,342,136,338.93, indicating an increase of approximately 26.6%[14] Research and Development - Research and development expenses for the first three quarters of 2025 were ¥226,891,895.44, compared to ¥180,455,797.31 in 2024, reflecting a growth of 25.7%[18] - Other income for the first three quarters of 2025 was ¥58,452,639.97, an increase from ¥32,566,696.26 in 2024, showing a growth of 79.6%[18] Borrowings - The company's short-term borrowings increased to CNY 220,978,180.00 from CNY 110,070,694.45, which is a rise of about 100%[15] - The cash and cash equivalents decreased to CNY 4,552,877,662.35 from CNY 5,078,017,354.46, reflecting a decline of approximately 10.3%[14] - The non-current assets totaled CNY 4,210,762,467.16, an increase from CNY 3,988,466,799.03, representing a growth of about 5.6%[15] - The company's retained earnings increased to CNY 8,021,409,376.13 from CNY 6,935,587,562.71, reflecting a growth of approximately 15.7%[16]

Core Insights - The engineering machinery sector experienced a rise of 1.84% on October 29, with Tongli Co., Ltd. leading the gains [1] - The Shanghai Composite Index closed at 4016.33, up 0.7%, while the Shenzhen Component Index closed at 13691.38, up 1.95% [1] Engineering Machinery Sector Performance - Tongli Co., Ltd. (code: 920599) closed at 21.82, with a significant increase of 9.48% and a trading volume of 196,600 shares [1] - Other notable performers included Wantong Hydraulic (code: 920839) with a 7.91% increase, and Hangcha Group (code: 603298) with a 6.02% increase [1] - The sector saw a total net inflow of 85.14 million yuan from main funds, while retail investors contributed a net inflow of 21.9 million yuan [2][3] Individual Stock Performance - Major stocks with negative performance included XG Group (code: 600815) which fell by 6.10% and Shaoyang Hydraulic (code: 301079) which decreased by 4.06% [2] - The trading volume for XG Group was 1,946,700 shares, with a transaction value of 631 million yuan [2] Fund Flow Analysis - Main funds showed a net inflow in several companies, with Hengli Hydraulic (code: 601100) receiving a net inflow of 14.216 million yuan [3] - Conversely, retail funds showed a net outflow in many stocks, indicating a shift in investor sentiment [3]

Group 1 - Zhejiang Dingli has been awarded the highest information disclosure rating "A (Excellent)" for the 2024 to 2025 period, marking the eighth consecutive year of receiving this rating from the Shanghai Stock Exchange, reflecting high recognition from regulatory authorities for the company's information disclosure, investor relations, and corporate governance efforts [1] - In the 2024 to 2025 information disclosure evaluation, only 312 out of 1679 listed companies on the Shanghai main board received an A rating, representing 18.6%, with only 65 companies achieving this rating for eight consecutive years, accounting for 3.9% [1] Group 2 - In 2025, the company received nominations for two awards from the global authority in sustainable and responsible supply chains, Sedex, for "Technological Innovation" and "Proactive Approach," and achieved a ranking in the top 7% in the latest Corporate Sustainability Assessment (CSA) by S&P Global [2] - The company has made significant progress in its ESG ratings, moving from A to AA in the Wind ESG rating update, ranking 8th among 563 peers, indicating strong recognition from international authorities and capital markets for its commitment to sustainable development [2] Group 3 - The company emphasizes a future direction focused on "Electrification, Greenization, Digitalization, and Unmanned Operations," planning to expand its product offerings in aerial work platforms and enhance R&D efforts for unmanned equipment [3] - The company aims to continuously improve information disclosure, optimize investor relations management, and increase investor returns while deepening R&D innovation to drive high-quality development [3]

Core Points - The engineering machinery sector experienced a decline of 1.49% on October 23, with Tietuo Machinery leading the drop [1] - The Shanghai Composite Index closed at 3922.41, up 0.22%, while the Shenzhen Component Index closed at 13025.45, also up 0.22% [1] Sector Performance - The following companies showed notable performance: - Weiman Sealing (Code: 301161) increased by 4.93% with a closing price of 39.77 and a trading volume of 153,800 shares [1] - Southern Road Machinery (Code: 603280) rose by 1.88% to 42.25 with a trading volume of 149,900 shares [1] - Huadong Heavy Machinery (Code: 002685) saw a slight increase of 0.79% to 7.62 with a trading volume of 177,200 shares [1] - Conversely, Tietuo Machinery (Code: 920706) fell by 13.57% to 24.71 with a trading volume of 136,700 shares [2] - Other significant declines included: - Hengli Drill Tools (Code: 920942) down 10.57% to 41.69 [2] - Construction Machinery (Code: 600984) down 8.70% to 4.20 [2] Capital Flow - The engineering machinery sector saw a net outflow of 882 million yuan from institutional investors, while retail investors contributed a net inflow of 849 million yuan [2][3] - The following companies had notable capital flows: - Huadong Heavy Machinery had a net inflow of 8.05 million yuan from institutional investors [3] - Anhui Heli (Code: 600761) experienced a net outflow of 1.91 million yuan from institutional investors [3] - Tietuo Machinery had a significant net outflow of 13.67 million yuan from institutional investors [3]

Summary of China Machinery 3Q25 Preview Industry Overview - The report focuses on the **China machinery industry**, specifically construction machinery and trucks, with an emphasis on sales volume and profitability trends for 3Q25 [1][7][16]. Key Points Sales Volume Trends - **Domestic Sales Growth**: - Domestic sales volume for heavy-duty trucks (HDTs) increased by **81% year-over-year (yoy)** at the wholesale level and **65% yoy** at the retail level, indicating strong channel inventory health [5]. - Excavator sales volume also saw a surprising increase of **18% yoy**, surpassing earlier expectations of **5-10%** growth [5][14]. - Small machines drove the growth in excavators, with a **26% yoy** increase, while medium-to-large machines faced a **2% yoy** decline [5][14]. - **Export Trends**: - Export sales for HDTs grew by **23% yoy**, with strong performance in regions like Africa, the Middle East, and Southeast Asia [9][14]. - Overall export growth remained strong across most machinery categories, except for mobile cranes and aerial work platforms (AWPs) [14]. Profitability Insights - Despite solid top-line growth, profitability is expected to be under pressure due to: - Unfavorable foreign exchange impacts, particularly affecting companies like Hengli and Dingli [7][17]. - A negative product mix impacting Sany Heavy [7][17]. - Increased competition affecting Weichai [7]. Earnings Forecasts - The report anticipates that **4 out of 6** coverage companies will report solid top-line growth, primarily in double digits, led by Hengli [7]. - EPS estimates for the coverage companies have been revised downwards by **-7% to +6%** based on year-to-date developments [1][8]. Stock Ratings and Recommendations - **Buy Ratings**: - Weichai and Dingli are maintained as Buy rated due to their potential from German fiscal expansion and exposure to developed markets [8]. - **Neutral Ratings**: - Most construction machinery stocks, including Sany, Hengli, and Lonking, are rated Neutral as their positive outlooks are already reflected in current valuations [8]. - **Sell Rating**: - Sinotruk is rated Sell due to concerns over overestimated profitability amid pressures from electric HDTs and unfavorable export conditions [8]. Additional Insights - The report highlights a notable shift in the powertrain mix for trucks, with LNG penetration recovering and electrification accelerating, while diesel HDTs reached a historical low share [5]. - The construction machinery sector is experiencing intensified competition, particularly in the rental channel, which may affect future sales dynamics [14]. Conclusion - The China machinery industry is showing robust sales growth, particularly in domestic markets, but faces challenges in profitability due to external factors and competitive pressures. The outlook for individual companies varies, with specific recommendations based on their market positions and expected performance in the upcoming quarter.

Core Viewpoint - Zhejiang Dingli's stock performance shows a slight increase of 0.04% on October 22, with a trading volume of 189 million yuan, indicating stable market interest in the company [1] Financing Summary - On October 22, Zhejiang Dingli had a financing buy amount of 15.50 million yuan and a financing repayment of 29.66 million yuan, resulting in a net financing outflow of 14.16 million yuan [1] - The total financing and securities balance for Zhejiang Dingli reached 436 million yuan, with the financing balance accounting for 1.72% of the circulating market value, indicating a high level compared to the past year [1] - The company had a securities lending repayment of 1,200 shares and a securities lending sale of 2,100 shares, with a total sale amount of 104,600 yuan, while the securities lending balance was 3.48 million yuan, which is low compared to the past year [1] Business Performance - As of October 20, Zhejiang Dingli reported a total of 37,000 shareholders, an increase of 8.82%, while the average circulating shares per person decreased by 8.11% [2] - For the first half of 2025, Zhejiang Dingli achieved an operating income of 4.34 billion yuan, representing a year-on-year growth of 12.35%, and a net profit attributable to shareholders of 1.05 billion yuan, reflecting a year-on-year increase of 27.63% [2] Dividend Information - Since its A-share listing, Zhejiang Dingli has distributed a total of 1.89 billion yuan in dividends, with 1.27 billion yuan distributed over the past three years [3] Institutional Holdings - As of June 30, 2025, the top ten circulating shareholders of Zhejiang Dingli included Hong Kong Central Clearing Limited as the third-largest shareholder, increasing its holdings by 12.92 million shares [3] - Other notable institutional shareholders include Southern CSI 500 ETF and Hongde Rui Xing Mixed Fund, both of which increased their holdings compared to the previous period [3]

Core Viewpoint - The Chinese construction machinery industry is experiencing a strong recovery, driven by both domestic and international market demands, with significant growth in import and export trade figures [2][3]. Group 1: Industry Performance - In September 2025, China's construction machinery import and export trade reached $5.505 billion, a year-on-year increase of 29.1%, with exports accounting for $5.271 billion, up 29.6% [2]. - For the first three quarters of the year, the cumulative trade amount was $45.873 billion, reflecting a 12.8% year-on-year growth, with exports at $43.855 billion, up 13.3% [2]. - Excavator sales in September reached 19,858 units, a 25.4% increase year-on-year, with domestic sales at 9,249 units (up 21.5%) and exports at 10,609 units (up 29%) [2]. Group 2: Market Drivers - The recovery in the construction machinery sector is attributed to the synchronization of domestic and international market demands, with equipment renewal cycles and large project initiations driving domestic demand [3]. - The "Belt and Road" initiative continues to boost infrastructure construction needs in partner countries, enhancing China's machinery exports [3]. - The demand for small excavators is growing due to urbanization and industrialization in "Belt and Road" countries, alongside domestic needs driven by agriculture and municipal projects [3]. Group 3: Stock Market Performance - On October 21, the A-share construction machinery sector saw a 2% increase in the industry index, with a net inflow of 1.394 billion yuan into the sector [3]. - Notable stock performances included Xugong Machinery and Tieshan Heavy Industry, with the latter rising by 7.14% [3]. Group 4: Company Valuations - Among 35 listed companies in the construction machinery sector, the median rolling price-to-earnings (P/E) ratio is 41.2 times, with 12 companies having P/E ratios below 20 times [4]. - Tongli Co. has the lowest rolling P/E ratio at 11.22 times, focusing on non-road dump trucks and mining vehicles [5]. Group 5: International Business Growth - In the first half of the year, 24 listed companies reported overseas business revenues totaling 84.685 billion yuan, a year-on-year increase of over 10% [5]. - Companies like Tuoshan Heavy Industry and Weibow Hydraulic reported significant growth in overseas revenues, with increases of 54.61% and 53.23%, respectively [5].

Core Insights - Zhejiang Dingli's stock price increased by 2.03% on October 20, reaching 49.17 CNY per share, with a total market capitalization of 24.897 billion CNY [1] - The company has experienced a year-to-date stock price decline of 22.59% and a slight decrease of 0.79% over the last five trading days [1] - For the first half of 2025, Zhejiang Dingli reported a revenue of 4.336 billion CNY, reflecting a year-on-year growth of 12.35%, and a net profit of 1.052 billion CNY, up 27.63% year-on-year [2] Financial Performance - The company has distributed a total of 1.886 billion CNY in dividends since its A-share listing, with 1.266 billion CNY distributed over the past three years [3] - As of September 30, the number of shareholders stood at 34,000, with an average of 14,892 circulating shares per shareholder [2] Shareholder Structure - As of June 30, 2025, the top ten circulating shareholders include Hong Kong Central Clearing Limited, which increased its holdings by 12.927 million shares to 34.3028 million shares [3] - Southern CSI 500 ETF and Hongde Rui Xing Mixed Fund also increased their holdings, while some funds exited the top ten shareholder list [3]

Market Overview - The engineering machinery sector experienced a decline of 1.35% on October 13, with Zhejiang Dingli leading the drop [1] - The Shanghai Composite Index closed at 3889.5, down 0.19%, while the Shenzhen Component Index closed at 13231.47, down 0.93% [1] Stock Performance - Notable gainers in the engineering machinery sector included: - Wantong Hydraulic: Closed at 46.88, up 6.52% with a trading volume of 45,100 shares and a turnover of 203 million [1] - Shantui: Closed at 10.65, up 3.40% with a trading volume of 592,800 shares and a turnover of 618 million [1] - Southern Road Machinery: Closed at 66.99, up 3.04% with a trading volume of 50,800 shares and a turnover of 184 million [1] - Major decliners included: - Zhejiang Dingli: Closed at 49.56, down 7.71% with a trading volume of 174,100 shares and a turnover of 866 million [2] - Zhongji United: Closed at 39.80, down 6.81% with a trading volume of 170,300 shares and a turnover of 674 million [2] - Anhui Heli: Closed at 20.50, down 5.49% with a trading volume of 210,200 shares and a turnover of 433 million [2] Capital Flow - The engineering machinery sector saw a net outflow of 246 million from institutional investors, while retail investors contributed a net inflow of 227 million [2] - Key stocks with significant capital flow included: - Hengli Hydraulic: Net outflow of 53.17 million from institutional investors, with a retail net inflow of 554,600 [3] - Xugong Machinery: Net inflow of 39.09 million from institutional investors, but a net outflow of 95.02 million from retail investors [3] - Zhejiang Dingli: Net inflow of 20.35 million from institutional investors, but a net outflow of 66.78 million from retail investors [3]

Core Viewpoint - Zhejiang Dingli's stock price has shown fluctuations, with a recent increase of 2.11%, while the company has experienced a year-to-date decline of 13.89% [1] Financial Performance - For the first half of 2025, Zhejiang Dingli achieved a revenue of 4.336 billion yuan, representing a year-on-year growth of 12.35%, and a net profit attributable to shareholders of 1.052 billion yuan, up 27.63% [2] - Cumulatively, the company has distributed 1.886 billion yuan in dividends since its A-share listing, with 1.266 billion yuan distributed over the past three years [3] Shareholder Information - As of September 19, 2025, the number of shareholders increased to 34,000, with an average of 14,892 circulating shares per person, a decrease of 2.94% [2] - The top ten circulating shareholders include Hong Kong Central Clearing Limited and Southern CSI 500 ETF, with notable increases in their holdings [3] Stock Market Activity - As of October 10, 2025, Zhejiang Dingli's stock was trading at 54.70 yuan per share, with a total market capitalization of 27.697 billion yuan [1] - The stock has seen a recent net inflow of 4.147 million yuan from main funds, with significant buying activity from large orders [1]