Seres Group (601127) Q1 2025 earnings summary

Executive summary

• Net profit attributable to shareholders surged 240.60% year-over-year to RMB 747.79 million, with adjusted net profit up 244.34% to RMB 393.85 million.

• Revenue declined 27.91% year-over-year to RMB 19.15 billion, reflecting a transition period for new product launches.

• Cash flow from operating activities dropped sharply to -RMB 7.63 billion, mainly due to reduced sales collections and increased supplier payments.

Financial highlights

• Basic and diluted EPS rose to RMB 0.50, up 233.33% year-over-year.

• Gross margin improved as a result of product mix optimization.

• Total assets increased 4.61% from year-end to RMB 98.71 billion.

• Shareholders' equity attributable to listed company shareholders rose 88.56% to RMB 23.13 billion.

Outlook and guidance

• Management attributes profit growth to higher gross margins and increased interest income from deposits.

• Cash flow challenges are expected to ease as new products gain traction and sales collections recover.