Cathay Biotech (688065) Q3 2025 earnings summary

Executive summary

• Revenue for Q3 2025 reached RMB 874.27 million, up 13.43% year-over-year; YTD revenue was RMB 2.55 billion, up 14.90% year-over-year.

• Net profit attributable to shareholders for Q3 was RMB 142.01 million, up 45.30% year-over-year; YTD net profit was RMB 450.67 million, up 30.56% year-over-year.

• Profit growth driven by increased sales and gross margin from long-chain dicarboxylic acid products.

Financial highlights

• Q3 total profit was RMB 161.31 million, up 51.46% year-over-year; YTD total profit was RMB 503.42 million, up 29.96%.

• Basic and diluted EPS for Q3 was RMB 0.20, up 17.65% year-over-year; YTD EPS was RMB 0.67, up 13.56%.

• Operating cash flow for the first nine months was RMB 273.09 million, down 59.60% year-over-year due to increased procurement of raw materials.

• R&D investment for Q3 was RMB 55.37 million, down 19.45% year-over-year; YTD R&D was RMB 178.57 million, up 5.79%.

• R&D as a percentage of revenue decreased to 6.33% in Q3.

Outlook and guidance

• Continued volume growth in long-chain dicarboxylic acid products expected to support future revenue and profit expansion.