Huagong Tech Company (000988) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 reached RMB 3.36 billion, up 52.28% year-over-year, driven by significant sales order growth.

• Net profit attributable to shareholders was RMB 409.90 million, a 40.88% increase compared to Q1 2024.

• Basic and diluted EPS were both RMB 0.41, up 41.38% year-over-year.

Financial highlights

• Operating cash flow was negative RMB 342.47 million, down 146.31% year-over-year due to increased inventory and cash outflows.

• Gross margin remained stable despite a 59.08% increase in cost of sales, reflecting scale expansion.

• Total assets at quarter-end were RMB 20.36 billion, down 2.23% from year-end 2024.

• Shareholders’ equity rose 4.02% to RMB 10.59 billion.

• Non-recurring gains totaled RMB 100.60 million, mainly from government grants and fair value changes.

Outlook and guidance

• Management continues to increase R&D investment in new technologies and products, supporting future growth.