Hengyi Petrochemical (000703) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was RMB 27.17 billion, down 14.18% year-over-year; net profit attributable to shareholders was RMB 51.49 million, down 87.55% year-over-year.

• Net profit excluding non-recurring items was RMB 8.17 million, a 97.40% decrease year-over-year.

• Operating cash flow was negative RMB 3.84 billion, a further decline from the previous year.

Financial highlights

• Total assets at quarter-end were RMB 111.0 billion, up 3.22% from year-end 2024.

• Shareholders' equity attributable to listed company was RMB 24.64 billion, down 0.41% from year-end.

• Basic EPS was RMB 0.02, down 83.33% year-over-year.

• Gross margin and operating profit both declined sharply; operating profit was RMB 113.88 million, down from RMB 559.52 million a year ago.

• Non-recurring gains totaled RMB 43.32 million, mainly from government subsidies and investment income from associates.

Key financial ratios and metrics

• Weighted average ROE was 0.21%, down from 1.64% in Q1 2024.

• Net cash flow from operating activities was negative RMB 3.84 billion, a 56.37% deterioration year-over-year.

• Asset-liability ratio increased as total liabilities rose to RMB 80.34 billion.