Hangcha Group (603298) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 reached ¥4.51 billion, up 8.02% year-over-year, with net profit attributable to shareholders at ¥436 million, a 15.18% increase year-over-year.

• Basic and diluted EPS both rose to ¥0.33, up 13.79% from the same period last year.

Financial highlights

• Operating cash flow dropped 36.62% year-over-year to ¥217.5 million, mainly due to increased inventory for expanded overseas sales.

• Total assets at quarter-end were ¥17.39 billion, up 6.26% from year-end 2024.

• Shareholders’ equity increased 4.16% to ¥10.59 billion compared to year-end 2024.

• Gross margin improved as revenue growth outpaced cost increases.

Key financial ratios and metrics

• Weighted average ROE was 4.20%, down 0.11 percentage points year-over-year.

• Net profit margin improved due to higher revenue and controlled costs.