Sinostar PEC (C9Q) Q1 2025 earnings summary

Executive summary

• Q1 revenue fell 10.69% YoY to RMB1,306.5m; gross profit declined 48.08% to RMB71.6m, primarily due to insufficient market demand.

• Net profit fell 48.9% YoY to RMB45.1m, with lower gross profit the primary driver.

Financial highlights

• Profit before tax fell 49.6% YoY to RMB59.5m; income tax expense declined 51.6% to RMB14.4m.

• Administrative costs decreased to RMB7.2m from RMB13.8m, mainly due to a RMB6.92m reduction in R&D expenses; finance costs fell to RMB3.3m from RMB6.6m.

• Distribution costs rose to RMB3.2m from RMB2.3m, reflecting more door-to-door delivery services and higher product delivery volume.

Outlook and guidance

• No formal earnings forecast; the strategy remains focused on product differentiation, high-end development, technology investment and portfolio refinement.

• High-end polypropylene demand is expected to grow, supported by new-energy vehicle applications, green consumption and policy support.

• No Q1 cash dividend, with funds allocated to restructuring expenditures and maintaining adequate cash flow.