Luzhou Laojiao (000568) Q1 2025 earnings summary

Executive summary

• Q1 2025 operating revenue reached CNY 9.35 billion, up 1.78% year-over-year, with net profit attributable to shareholders at CNY 4.59 billion, a 0.41% increase year-over-year.

• Basic and diluted EPS both stood at CNY 3.13, up 0.32% from Q1 2024.

• Net cash flows from operating activities declined 24.12% year-over-year to CNY 3.31 billion.

Financial highlights

• Total assets as of March 31, 2025, were CNY 66.78 billion, down 2.27% from December 31, 2024.

• Net assets attributable to shareholders rose 5.86% year-over-year to CNY 50.17 billion.

• Weighted average ROE was 9.48% for Q1 2025.

• Non-recurring gains and losses included government grants (CNY 16.65 million), fair value changes (CNY 5.87 million), and other non-operating items (-CNY 25.60 million).

Key financial ratios and metrics

• Gross margin improved as cost of sales increased at a slower rate than revenue.

• Financial expenses decreased by CNY 60.24 million year-over-year due to reclassification of note discount expenses.

• Investment income dropped by CNY 18.95 million year-over-year, mainly from reclassification effects.

• Non-operating expenses surged by CNY 26.17 million, largely due to increased donations.