--- title: "Three companies' net profit differentiation, disassembling ZALL system's interim report" type: "News" locale: "en" url: "https://longbridge.com/en/news/255900068.md" description: "Under the leadership of Yan Zhi, the three listed companies under ZALL SMARTCOM showed divergent performances in the 2025 mid-year report. The Hong Kong stock company ZALL SMARTCOM saw a net profit increase of over 90% year-on-year, with operating revenue of approximately 90.921 billion yuan; while the A-share company HanShang Group experienced a net profit decline of over 80%, with revenue of approximately 513 million yuan, a year-on-year decrease of 18.06%; Huazhong CNC remained in a loss state, with a net profit of approximately -81.4491 million yuan and revenue of approximately 554 million yuan, a year-on-year decrease of 11.91%" datetime: "2025-09-04T07:10:13.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/255900068.md) - [en](https://longbridge.com/en/news/255900068.md) - [zh-HK](https://longbridge.com/zh-HK/news/255900068.md) --- # Three companies' net profit differentiation, disassembling ZALL system's interim report Under the leadership of the well-known entrepreneur Yan Zhi, ZALL SMARTCOM Co., Ltd. (hereinafter referred to as "ZALL SMARTCOM") has become a well-known comprehensive enterprise group, with its main business involving trade logistics, intelligent manufacturing, and other fields. While continuously expanding its business, Yan Zhi has also made significant strides in the capital market, holding shares in three listed companies: HanShang Group (600774), Huazhong CNC (300161), and ZALL SMARTCOM (2098.HK). With the conclusion of the 2025 mid-year report, the two A-share listed companies and the Hong Kong listed company under Yan Zhi have all submitted their "report cards" for the first half of the year, showing a divergence in net profit performance. Among them, the best performer is the Hong Kong company ZALL SMARTCOM, which saw a year-on-year net profit growth of over 90% in the first half of the year. The two A-share companies performed slightly worse, with HanShang Group's net profit declining by over 80% in the first half, while Huazhong CNC's net profit remained in a loss state, although it reduced its losses year-on-year. Divergence in performance in the first half of the year From the performance of the three listed companies, ZALL SMARTCOM saw both revenue and net profit increase, while HanShang Group experienced declines in both revenue and net profit, and Huazhong CNC reduced its net loss year-on-year. Specifically, ZALL SMARTCOM delivered an impressive report card. In the first half of this year, the company achieved an operating income of approximately 90.921 billion yuan, a year-on-year increase of 33.17%; corresponding to a net profit attributable to shareholders of approximately 97.051 million yuan, a year-on-year increase of 94.82%. Regarding the A-share companies, the mid-year report shows that during the reporting period, HanShang Group achieved an operating income of approximately 513 million yuan, a year-on-year decrease of 18.06%; corresponding to a net profit attributable to shareholders of approximately 1.6215 million yuan, a year-on-year decrease of 80.95%. In contrast, the worst performer among the three listed companies is Huazhong CNC. The financial report shows that in the first half of 2025, Huazhong CNC achieved an operating income of approximately 554 million yuan, a year-on-year decrease of 11.91%; corresponding to a net profit attributable to shareholders of approximately -81.4491 million yuan, still in a loss state, although it reduced its losses year-on-year. The company stated that the decline in revenue during the reporting period was due to changes in the scope of consolidation from subsidiary divestitures and the impact of sanctions on overseas production line businesses. It is reported that Huazhong CNC was listed on the Shenzhen Stock Exchange's Growth Enterprise Market in 2011, focusing on CNC system technology, with three main business segments: CNC machine tool systems, industrial robots and intelligent manufacturing, and new energy vehicle components. Among them, the CNC system and machine tool sector (including CNC systems, motors, and CNC machine tool businesses) achieved revenue of 363 million yuan, a decrease of 5.24% compared to the same period last year; the industrial robots and intelligent production line sector achieved revenue of 157 million yuan, a decrease of 23.31% compared to the same period last year; other businesses collectively achieved revenue of 34.3611 million yuan, a decrease of 17.33% compared to the same period last year. In addition, the mid-year report shows that as of the end of the first half of the year, Huazhong CNC's R&D investment was 175 million yuan, a year-on-year decrease of 20.42%, accounting for 32% of operating income. As of the end of the reporting period, the company had accumulated over 2,000 patents and software copyrights From 2022 to 2024, the company's R&D investment accounts for an average of 20.9% of its operating revenue. In terms of equity relationships, the controlling shareholders of HanShang Group are ZALL Holdings and Yan Zhi, while the controlling shareholder of Huazhong CNC is ZALL Intelligent Manufacturing Group Co., Ltd. The largest shareholder of ZALL SmartCom is ZALL Development Investment Co., Ltd., and the actual controllers of the three listed companies are all Yan Zhi. The asset-liability ratio is "eye-catching." The mid-term report shows that as of the end of the first half of the year, ZALL SmartCom had total assets of 69.782 billion yuan and total liabilities of 55.402 billion yuan, resulting in an asset-liability ratio of 79.39%. Zhi Peiyuan, vice president of the Investment Professional Committee of the China Investment Association, told Beijing Business Daily that the level of the asset-liability ratio should consider industry characteristics. If the company's asset-liability ratio is higher than the industry average, it may raise market doubts about its operating model. Additionally, a high asset-liability ratio may offset the positive impact of performance growth. Yuan Shuai, co-founder of the New Smart Manufacturing Productivity Salon, also stated that listed companies should pay attention to managing their asset-liability ratios by optimizing capital structures, arranging debt financing reasonably, and improving operational efficiency to reduce the asset-liability ratio, ensuring stable development for the company and protecting shareholders' interests. Huazhong CNC's mid-term report shows that as of the end of the first half of the year, the company had total assets of 4.45 billion yuan and total liabilities of 2.765 billion yuan, resulting in an asset-liability ratio of 62.12%. As for HanShang Group, as of the end of the first half of the year, the company had total assets of 3.423 billion yuan and total liabilities of 1.623 billion yuan, resulting in an asset-liability ratio of 47.4%. During the reporting period, HanShang Group promoted the "Big Health + Big Business" dual main business development strategy, with its main businesses being pharmaceuticals, medical devices, and commercial and exhibition operations. As of the end of the first half of the year, the company's selling expenses were approximately 70.31 million yuan, a year-on-year decrease of 53.06%. Regarding the reasons for the change in selling expenses, HanShang Group stated that it was mainly due to a reduction in development and promotion expenses during the period. As of the end of the first half of the year, the company's R&D expenses were approximately 17.4101 million yuan, a slight year-on-year decrease of 1.67%. In addition, ZALL SmartCom's business involves wholesale trade of consumer goods, supply chain management, and trade. Financial data shows that the company's sales cost increased from approximately 67.913 billion yuan in the same period last year to approximately 90.644 billion yuan during the reporting period, a year-on-year increase of over 30%. The total market value of the three stocks exceeds 10 billion yuan. Founded in 1996, ZALL Holdings is a comprehensive enterprise group that integrates advanced manufacturing and modern service industries, consistently ranking among China's top 500 for many years. From the perspective of ZALL Holdings' industrial layout, the group mainly includes three major business segments: ZALL SmartCom, ZALL Smart City, and ZALL Intelligent Manufacturing. The ZALL SmartCom segment is based on offline wholesale markets, linked with online B2B trading platforms, providing trade, logistics, finance, and cross-border trade services, and building a global digital trade platform; the ZALL Smart City segment constructs urban living rooms, characteristic towns, hotel scenic spots, industrial parks, and youth communities, innovatively providing a better new lifestyle; the ZALL Intelligent Manufacturing segment focuses on the development of high-end manufacturing industries such as CNC systems, industrial robots, light aircraft, and medical textile technology According to reports, the Hong Kong-listed company ZALL SMARTCOM belongs to the ZALL SMARTCOM sector within the group. In the recently released 2025 list of China's Top 500 Private Enterprises, ZALL SMARTCOM ranked 46th, first among private enterprises in Hubei, and 11th in the "Top 100 Private Service Enterprises in China" list. Since 2021, the company's revenue has exceeded 100 billion for four consecutive years, growing to 162.359 billion yuan in 2024, ranking first among Hubei listed companies for that year. Additionally, the 2025 Fortune China 500 list shows that ZALL SMARTCOM ranked 160th, an increase of 22 places from last year. Yan Zhi, the founder of ZALL Holdings, was born in 1972 and serves as the chairman of ZALL Holdings. From the performance in the secondary market, on September 3, Huazhong CNC had a latest total market value of 5.883 billion yuan; Hanchang Group had a latest total market value of 2.9 billion yuan; and ZALL SMARTCOM had a latest total market value of 1.612 billion Hong Kong dollars. According to calculations by Beijing Business Today reporters, the combined latest total market value of the three stocks is approximately 10.26 billion yuan. Regarding related issues, Beijing Business Today reporters sent interview requests to Hanchang Group, Huazhong CNC, and ZALL SMARTCOM, but as of the time of publication, there has been no response from the parties. Beijing Business Today reporter Ma Huanhuan, intern reporter Li Jiaxue ### Related Stocks - [02098.HK](https://longbridge.com/en/quote/02098.HK.md) ## Related News & Research - [Johns Hopkins University lays off over 100 employees, cites federal funding cuts](https://longbridge.com/en/news/290883064.md) - [GRAINS-Corn extends losses on weaker crude, firm dollar](https://longbridge.com/en/news/290791787.md) - [08:42 ETUnido Brings Panamanian Coffee and Culture to Buzzard Point](https://longbridge.com/en/news/290833737.md) - [Localiza launches BRL 1.8 billion debenture offering](https://longbridge.com/en/news/291013079.md) - [TABLE-Asian physical rubber prices - June 26](https://longbridge.com/en/news/290926359.md)