Hualan Biological Engineering (002007) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached RMB 867.61 million, up 10.2% year-over-year; net profit attributable to shareholders was RMB 313.14 million, up 19.62% year-over-year.

• Net profit excluding non-recurring items was RMB 299.74 million, up 35.35% year-over-year.

• Operating cash flow dropped 71.75% year-over-year to RMB 14.18 million due to lower cash received from sales.

Financial highlights

• Total assets at quarter-end were RMB 16.64 billion, up 2.02% from year-end 2024; shareholders' equity was RMB 12.17 billion, up 2.64%.

• Basic and diluted EPS were RMB 0.1715 and RMB 0.1712, respectively, both up from Q1 2024.

• Gross margin improved as net profit growth outpaced revenue growth.

• Non-recurring gains included government subsidies and fair value changes, while losses included asset disposals.

Key financial ratios and metrics

• Weighted average ROE was 2.61%, up from 2.28% in Q1 2024.

• Net profit margin improved year-over-year.

• Financial expenses rose 112.69% due to lower interest income.