Cathay Biotech (688065) H1 2025 earnings summary

Executive summary

• Revenue for H1 2025 reached RMB 1.67 billion, up 15.68% year-over-year; net profit attributable to shareholders was RMB 308.67 million, up 24.74% year-over-year.

• Gross margin and sales of long-chain dicarboxylic acids continued to rise, driving overall profit growth.

• Major capital injection: RMB 5.915 billion raised via private placement, with controlling shareholder changed to Shanghai Yaoxiu.

• R&D investment increased 23.13% year-over-year, focusing on green dicarboxylic acids, bio-based piperidine, and composite materials.

• Strategic cooperation with China Merchants Group and local governments to build bio-based materials industry clusters.

Financial highlights

• Operating income: RMB 1,670,767,942.21, up 15.68% year-over-year.

• Net profit attributable to shareholders: RMB 308,667,050.28, up 24.74% year-over-year.

• Basic and diluted EPS: RMB 0.47, up 11.90% year-over-year.

• Net cash from operating activities: RMB 339,313,855.32, down 22.08% year-over-year.

• Net assets attributable to shareholders: RMB 17,452,567,422.38, up 51.67% from year-end 2024.

Outlook and guidance

• Continued expansion in long-chain dicarboxylic acids and bio-based polyamides, with new capacity ramping up.

• Strategic focus on green, low-carbon, and recyclable materials to capture new market opportunities.

• Ongoing collaboration with China Merchants Group to deepen industry chain integration and application development.