Shenzhen Envicool Technology (002837) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 reached ¥932.59 million, up 25.07% year-over-year, while net profit attributable to shareholders fell 22.53% to ¥48.01 million.

• Operating cash flow turned negative at -¥170.77 million, compared to ¥56.27 million in Q1 2024.

• Gross margin compressed as costs and expenses rose sharply, particularly in R&D and sales.

Financial highlights

• Revenue: ¥932.59 million, up 25.07% year-over-year.

• Net profit attributable to shareholders: ¥48.01 million, down 22.53% year-over-year.

• EPS: ¥0.06, down from ¥0.08 in Q1 2024.

• Operating cash flow: -¥170.77 million, a significant decline from positive cash flow last year.

• Total assets: ¥6.22 billion, up 3.34% from year-end 2024.

Outlook and guidance

• Management attributes profit decline to increased costs in R&D, sales, and management, with expectations for continued investment in these areas.