HEBEI YANGYUAN ZHIHUI BEVERAGE (603156) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was RMB 1.86 billion, down 19.7% year-over-year; net profit attributable to shareholders was RMB 642 million, down 26.95% year-over-year.

• Basic EPS was RMB 0.5095, a 26.65% decrease compared to Q1 2024.

• Gross margin improved as cost reductions outpaced revenue decline.

Financial highlights

• Operating income for Q1 2025 was RMB 802 million, down from RMB 1.08 billion in Q1 2024.

• Net cash flow from operating activities was negative RMB 235 million, a significant improvement from negative RMB 878 million in Q1 2024.

• Total assets at quarter-end were RMB 13.12 billion, down 5.09% from year-end 2024.

• Shareholders' equity increased 6.07% to RMB 10.62 billion.

Key financial ratios and metrics

• Weighted average ROE for Q1 2025 was 6.22%, down 1.53 percentage points year-over-year.

• Gross margin improved due to lower cost of sales relative to revenue decline.

• Adjusted net profit (excluding non-recurring items) was RMB 555.7 million, down 21.33% year-over-year.