Hualan Biological Engineering (002007) Q3 2025 earnings summary

Executive summary

• Revenue for Q3 2025 was ¥1.58 billion, down 14% year-over-year; net profit attributable to shareholders was ¥268.56 million, down 44.45% year-over-year.

• Year-to-date revenue reached ¥3.38 billion, a 3.2% decrease from the same period last year; net profit attributable to shareholders was ¥784.42 million, down 15.07% year-over-year.

• Non-recurring gains contributed ¥10.17 million in Q3 and ¥41.98 million year-to-date.

Financial highlights

• Basic EPS for Q3 was ¥0.1467, down 44.64% year-over-year; year-to-date EPS was ¥0.4291, down 15.13%.

• Operating cash flow for Q3 was ¥450.63 million, down 1.98% year-over-year.

• Gross margin and operating income declined due to lower revenue and increased costs.

• Total assets at quarter-end were ¥16.27 billion, down 0.26% from the previous year-end.

• Shareholders’ equity was ¥11.37 billion, down 4.11% from the previous year-end.

Outlook and guidance

• Management highlighted a decrease in government subsidies and interest income, impacting profitability.

• Increased R&D and public welfare donations contributed to higher expenses.