Sinoma International Engineering (600970) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached RMB 10.15 billion, down 1.37% year-over-year; net profit attributable to shareholders was RMB 663 million, up 4.19% year-over-year.

• Net profit excluding non-recurring items was RMB 599 million, down 8.38% year-over-year.

• Cash flow from operating activities was negative RMB 1.87 billion, a significant outflow compared to negative RMB 1.19 billion in Q1 2024.

Financial highlights

• Total assets at March 31, 2025 were RMB 57.93 billion, down 1.39% from year-end 2024.

• Shareholders' equity attributable to listed company shareholders was RMB 21.79 billion, up 3.19% from year-end 2024.

• Basic and diluted EPS were both RMB 0.25, compared to RMB 0.25 and RMB 0.24 respectively in Q1 2024.

• Gross margin remained stable; operating profit was RMB 814 million, up from RMB 799 million year-over-year.

• Non-recurring gains totaled RMB 64 million, mainly from asset disposals and government grants.

Key financial ratios and metrics

• Weighted average ROE was 3.09%, down 0.19 percentage points year-over-year.

• Operating margin improved slightly as operating profit outpaced revenue decline.

• Cash and cash equivalents at quarter-end were RMB 7.33 billion, up from RMB 5.93 billion at the end of Q1 2024.