New Hope Liuhe (000876) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 reached RMB 24.42 billion, up 2.13% year-over-year, with net profit attributable to shareholders at RMB 445 million, a significant turnaround from a net loss of RMB 1.93 billion in Q1 2024.

• Operating cash flow surged 633.2% year-over-year to RMB 967 million, reflecting improved profitability and cash management.

• The company attributes profit recovery to higher hog prices, improved farming costs, and increased feed business profitability.

Financial highlights

• Gross margin improved as operating costs decreased, with operating profit at RMB 659 million versus a loss last year.

• Basic and diluted EPS were RMB 0.09, compared to -0.43 in Q1 2024.

• Total assets stood at RMB 117.94 billion, with shareholders’ equity at RMB 25.73 billion, both slightly up from year-end 2024.

• Non-recurring gains totaled RMB 9.86 million, mainly from government grants and fair value changes.

Outlook and guidance

• Management expects continued improvement in profitability, driven by stable hog prices and ongoing cost controls.