Huafon Chemical Co. (002064) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was RMB 6.31 billion, down 5.15% year-over-year; net profit attributable to shareholders was RMB 504 million, down 26.21%.

• Cash flow from operating activities improved to RMB 103 million from a negative RMB 60 million in Q1 2024.

• Non-recurring gains totaled RMB 44.54 million, mainly from government subsidies and asset disposals.

Financial highlights

• Operating income: RMB 6.31 billion, down 5.15% year-over-year.

• Net profit attributable to shareholders: RMB 504 million, down 26.21% year-over-year.

• Basic and diluted EPS: RMB 0.10, down 28.57% year-over-year.

• Total assets at quarter-end: RMB 35.65 billion, down 0.87% from year-end 2024.

• Shareholders' equity: RMB 26.97 billion, up 1.94% from year-end 2024.

Key financial ratios and metrics

• Weighted average ROE: 1.89%, down 0.81 percentage points year-over-year.

• Gross margin declined as cost of sales remained high relative to revenue.

• Operating cash flow margin improved significantly due to reduced cash outflows for goods purchased.