Henan Shenhuo Coal Industry and Electricity Power (000933) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached RMB 9.63 billion, up 17.13% year-over-year; net profit attributable to shareholders was RMB 708 million, down 35.05% year-over-year.

• Gross margin and profitability declined due to lower coal prices and higher alumina costs, weakening core product earnings.

• Cash flow from operating activities was RMB 1.69 billion, down 4.48% year-over-year.

Financial highlights

• Revenue: RMB 9.63 billion (up 17.13% YoY); net profit: RMB 708 million (down 35.05% YoY); EPS: RMB 0.321 (down 34.09% YoY).

• Net profit excluding non-recurring items: RMB 715 million (down 29.43% YoY).

• Operating cash flow: RMB 1.69 billion (down 4.48% YoY); total assets: RMB 52.19 billion (up 3.13% from year-end 2024).

• Weighted average ROE: 3.21% (down 2.14 percentage points YoY).

Outlook and guidance

• The company is advancing the spin-off listing of its subsidiary, Shenhuo New Materials Technology, to support aluminum processing business growth.

• Ongoing share repurchase program to enhance investor confidence and implement long-term incentive plans.