Chongqing Zhifei Biological Products Co (300122) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was RMB 2.37 billion, down 79.16% year-over-year due to underperforming market promotion and lower sales income.

• Net loss attributable to shareholders was RMB 305 million, compared to net profit of RMB 1.46 billion in Q1 2024.

• Basic and diluted EPS were both -0.1275, down from 0.6090 year-over-year.

Financial highlights

• Operating cash flow turned positive at RMB 304 million, up 107.12% year-over-year, mainly due to reduced payments for agent product purchases.

• Gross margin declined as cost of sales fell 80.89%, in line with revenue drop.

• Total assets at quarter-end were RMB 48.34 billion, down 3.14% from year-end 2024.

• Shareholders’ equity decreased 0.99% to RMB 30.53 billion.

Outlook and guidance

• Company is actively integrating newly acquired Chongqing Chen'an Biopharmaceutical (51% stake acquired in March 2025) to enhance business synergies.