Sanhua Intelligent Control: Net Profit Growth Exceeds 30% YoY, but New Energy Vehicle Thermal Management Product Sales and Production Decline for First Time | Financial Report Analysis

Cailian Press, March 24 — (Reporter Wang Bin) Leading company in thermal management, Sanhua Intelligent Controls (002050.SZ), achieved ten consecutive years of growth in last year’s performance, with revenue and net profit reaching new levels. However, its new energy vehicle thermal management products saw a first decline in production and sales, and the biomimetic robot electromechanical actuator business has shown little progress in over half a year.

Yesterday evening, the company announced that last year’s revenue was 31.012 billion yuan, a year-on-year increase of 10.97%; net profit attributable to shareholders was 4.063 billion yuan, up 31.10%; and net cash flow from operating activities increased by 16.58% year-on-year to 5.091 billion yuan.

Notably, due to significant exchange losses, the company’s financial expenses last year reached 1.01 billion yuan, a year-on-year increase of 331.19%. Additionally, the company recorded asset impairment losses of -1.23 billion yuan, mainly due to inventory write-downs and fixed asset impairments.

The company stated that the performance growth was mainly due to the simultaneous improvement in gross profit margins of two core business segments. Among them, last year, the revenue from refrigeration and air conditioning electrical components was 18.585 billion yuan, up 12.22% year-on-year, with a gross margin of 28.77%, an increase of 1.42 percentage points; automotive parts business revenue was 12.427 billion yuan, up 9.14% year-on-year, with a gross margin of 28.79%, up 1.15 percentage points.

Cailian Press noted that after experiencing double-digit growth from 2021 to 2024, last year Sanhua Intelligent Controls’ new energy vehicle thermal management products and domestic automotive parts production and sales both declined for the first time, while traditional fuel vehicle thermal management products continued to grow.

Specifically, last year, the company’s new energy vehicle thermal management product production and sales were 63.889 million and 63.752 million units, respectively, decreasing by 8.74% and 8.30% year-on-year; domestic automotive parts production and sales were 152 million units each, with slight declines of 0.66% and 1.39%; traditional fuel vehicle thermal management products’ production and sales were 19,400 and 184 million units, respectively, increasing by 7.64% and 5.33%.

Public information shows that domestic new energy vehicle sales are expected to grow by 28.2% year-on-year in 2025. This suggests that the company’s market share in China’s new energy vehicle thermal management sector may face certain challenges.

Meanwhile, strategic emerging businesses, including biomimetic robot electromechanical actuators, seem to have made little progress. In its 2025 annual report, Sanhua Intelligent Controls stated, “The company focuses on multiple key model products for technological improvements, collaborating with customers on key product R&D, prototyping, iteration, and sample delivery, receiving high praise from customers, and achieving a series of innovations around existing products, resulting in overall product strength enhancement.” This is highly consistent with the statement in the mid-2025 interim report.

In 2026, regarding the biomimetic robot business, Sanhua Intelligent Controls plans to “focus on electromechanical actuators, continue collaborating with customers on key product R&D, prototyping, iteration, and sample delivery, and increase development efforts on key components of electromechanical actuators. Meanwhile, the company will actively expand overseas production of electromechanical actuators and continuously grow its R&D team to consolidate its first-mover advantage in the emerging biomimetic robot electromechanical actuator market.”