LB Group (002601) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was RMB 7.05 billion, down 3.21% year-over-year; net profit attributable to shareholders was RMB 686 million, down 27.86% year-over-year.

• Basic EPS was RMB 0.29, a 29.27% decrease compared to the same quarter last year.

• Cash flow from operating activities was RMB 218 million, down 35.87% year-over-year.

Financial highlights

• Gross margin declined as operating costs remained high; operating income was RMB 849 million, down from RMB 1.15 billion last year.

• Non-recurring gains totaled RMB 27.7 million, mainly from government subsidies and debt restructuring.

• Total assets at quarter-end were RMB 67.23 billion, up 1.55% from year-end 2024.

• Shareholders' equity increased 3.06% to RMB 23.71 billion.

Key financial ratios and metrics

• Weighted average ROE was 2.94%, down 1.11 percentage points year-over-year.

• Basic and diluted EPS both at RMB 0.29, down from RMB 0.41 and RMB 0.40, respectively.

• Operating cash flow margin declined due to higher cash outflows for goods and services.