Ruichang International Holdings (1334) H1 2025 earnings summary

Executive summary

• H1 2025 revenue fell 32.5% YoY to RMB151.799m; gross profit declined 47.0% to RMB39.910m, and net loss was RMB38.1m versus profit of RMB11.5m.

• Results reflected postponed equipment orders, lower selling prices amid competition, and higher administrative and R&D expenses; net loss included RMB7.9m in listing expenses.

• Strategic priorities included green technology, after-sales services, overseas expansion and phosphorus-waste recovery.

Financial highlights

• Revenue was RMB151.799m versus RMB224.894m; cost of sales was RMB111.889m versus RMB149.640m.

• Gross profit was RMB39.910m versus RMB75.254m; gross margin fell to 26.3% from 33.5%.

• Net loss attributable to owners was RMB37.967m versus profit of RMB11.525m; basic and diluted loss per share was RMB0.0759 versus earnings of RMB0.0307.

• Selling expenses were RMB14.9m, administrative expenses RMB35.4m and R&D expenses RMB22.5m, versus RMB14.4m, RMB21.4m and RMB14.7m, respectively.

• Operating cash used was RMB96.7m; investing cash used was RMB16.7m, while financing activities generated RMB76.4m.

Outlook and guidance

• The intelligent Luoyang factory was under construction at 30 June; some facilities began operating in July 2025 to support capacity expansion.

• Phase one of the Huangshan phosphorus-waste recovery project is expected to complete and begin trial operations in December 2025; additional similar projects are planned.

• H2 priorities include developing Middle East and North Africa markets, advancing green-energy products and R&D, deepening after-sales services, and tighter cost and resource controls.

• Unutilized IPO proceeds of RMB31.4m were expected to be fully used by 30 June 2026: RMB25.9m for production capacity, RMB3.7m for R&D and RMB1.8m for working capital.