Cathay Biotech (688065) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 reached RMB 775.77 million, up 13.33% year-over-year.

• Net profit attributable to shareholders was RMB 136.95 million, a 30.11% increase year-over-year.

• R&D investment rose 35.21% to RMB 60.55 million, representing 7.81% of revenue.

• Major growth driven by increased sales and gross margin of long-chain dicarboxylic acids.

Financial highlights

• Operating cash flow dropped 59.36% to RMB 87.49 million due to higher procurement for production.

• Basic and diluted EPS were RMB 0.23, up 27.78% year-over-year.

• Total assets at quarter-end were RMB 24.69 billion, up 29.80% from year-end 2024.

• Shareholders' equity increased 52.64% to RMB 17.56 billion, mainly from a new share issuance.

Outlook and guidance

• Continued focus on expanding production and sales of core products, with ongoing R&D investment.