Songlin Technology's first-quarter maximum pre-profit of 110 million yuan, global expansion with Vietnam base to welcome capacity release

Changjiang Business News ●Changjiang Business Reporter Jiang Chuya

Songlin Technology’s profitability continues to improve.

On the evening of April 2, Songlin Technology (603992.SH) released a performance pre-increase announcement for the first quarter of 2026. It expects attributable net profit of RMB 91 million—RMB 110 million, representing a year-on-year increase of up to 141.99%. After the company’s full-year performance declined in 2025, it has achieved a dual turning point in both performance and strategy by leveraging the release of production capacity from its real-estate-equipment base in Vietnam and sustained high R&D investment.

Behind the accelerated global expansion, Songlin Technology is focusing on strengthening core competitiveness through R&D. From 2021 to the first three quarters of 2025, over nearly five years, the company’s cumulative R&D spending totaled RMB 969 million, laying a solid technical foundation for its smart kitchen and bathroom, health and wellness (soft and hard) hardware/software, and emerging robotics businesses.

First-quarter profits double

In 2025, affected by fluctuations in the global economy and external environment, Songlin Technology’s performance came under pressure. The annual report shows that for the full year, the company’s revenue was RMB 2.620 billion, down 13.10% year on year; attributable net profit was RMB 205 million, down 53.99% year on year; and non-recurring profit and loss adjusted net profit was RMB 179 million, down 57.01% year on year. Revenue for the company’s two core businesses—smart kitchen and bathroom and health and wellness (soft and hard) hardware—fell by 10.66% and 22.43%, respectively.

Entering 2026, the company’s performance reverses quickly. The first-quarter guidance indicates that its attributable net profit is expected to be RMB 91 million—RMB 110 million, up 100.20%—141.99% year on year; and non-recurring profit and loss adjusted net profit is expected to be RMB 83 million—RMB 102 million, up 130.20%—182.90% year on year. Based on the upper end, the net profit for the single quarter has already exceeded half of 2025 full-year figures, and the quality of growth has improved significantly.

The key driver behind the company’s performance surge is the release of production capacity at its Vietnam manufacturing base. The base shipped its first batch in June 2025. In the second half of the year, production capacity will enter ramp-up, and the second phase is expected to start production in the first half of 2026. The company has increased capital into its Vietnam subsidiary cumulatively to USD 80 million; the base covers 7 hectares with annual production capacity exceeding 1 million units. As a company with an export share of over 75%, the Vietnam base effectively avoids trade barriers, improves delivery efficiency, and has become a key support for growth in overseas business.

At the same time, the company focuses on its “IDM + robotics” dual-engine strategy to optimize product structure. In recent years, the company’s R&D expenses have risen year by year. From 2021 to the first three quarters of 2025, R&D expenses were RMB 170 million, RMB 192 million, RMB 204 million, RMB 225 million, and RMB 178 million, respectively, with cumulative R&D spending of RMB 969 million over nearly five years. High investment has driven an increase in the proportion of innovative products. The gross margin of the high-margin health and wellness (soft and hard) hardware business reaches 48.54%, making it a point of profit growth.

Emerging robotics business enters the stage of strategic execution

Long-term R&D investment has been converted into the company’s core competitiveness. Songlin Technology has been deeply engaged in the IDM model, independently controlling product definition, R&D design, and manufacturing, and has licensed patents of over 1,360. Products such as smart toilets and beauty and health devices show strong competitive advantages. Combined with the scale effect of the Vietnam base, the overall gross margin has been steadily rebounding.

The emerging robotics business has entered the stage of strategic execution. 2025 was the “robotics business’s first year.” The company established a wholly owned platform, integrated motion control technology, and built an industrial base and research institute to form a complete R&D and operations system. In 2026, it focuses on market-oriented breakthroughs, aiming to secure benchmark customers’ “lighthouse orders.” Its care robots have already obtained procurement contracts for 1,250 units, covering multiple scenarios such as walking assistance and nursing care.

Overseas expansion continues to deepen. It is reported that after the Vietnam base reaches full capacity, its annual output value will exceed USD 200 million. It will take on global orders, strengthen local delivery, and consolidate advantages in the European and American markets.

Looking ahead, as production capacity for Vietnam’s second phase is released, the robotics business is rolled out at scale, and the proportion of high-margin products increases, the company’s performance is expected to continue to grow at a high rate. By continuously increasing R&D investment and global production capacity deployment, Songlin Technology is promoting its upgrade from traditional manufacturing to “technology + intelligent manufacturing,” opening up room for long-term growth.

Editor: ZB

A wealth of information and precise analysis—available in the Sina Finance APP