Dong-E-E-Jiao Co. (000423) Q3 2025 earnings summary

Executive summary

• Achieved revenue of ¥4.77 billion for the first nine months of 2025, up 4.41% year-over-year after adjustment for business combination under common control.

• Net profit attributable to shareholders reached ¥1.27 billion, up 10.53% year-over-year for the same period.

• Q3 revenue was ¥1.72 billion, up 8.50% year-over-year; Q3 net profit was ¥456 million, up 10.27%.

• Acquired 100% equity of China Resources Pharmaceutical Trading (Hong Kong) in July 2025 to expand overseas business.

Financial highlights

• Operating cash flow for the first nine months was ¥1.31 billion, down 8.37% year-over-year.

• Basic and diluted EPS for the first nine months was ¥1.9781, up 10.31% year-over-year.

• Gross margin improved as cost of sales decreased year-over-year.

• R&D expenses increased 62.29% to ¥145 million, reflecting strategic investment in innovation.

• Asset disposal gains of ¥52.84 million recognized in the period.

Outlook and guidance

• Focus on overseas expansion and leveraging traditional Chinese medicine culture.

• Continued investment in R&D and new product development to drive future growth.