Zhejiang Huahai Pharmaceutical (600521) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was RMB 2.37 billion, down 5.21% year-over-year; net profit attributable to shareholders rose 9.81% to RMB 297 million.

• Cash flow from operations dropped 77.13% year-over-year, mainly due to lower cash received from sales and higher market promotion expenses.

• Total assets increased 6.10% from year-end 2024 to RMB 21.50 billion; shareholders' equity rose 9.91% to RMB 9.78 billion.

Financial highlights

• Operating income: RMB 2.37 billion, down 5.21% year-over-year.

• Net profit attributable to shareholders: RMB 297 million, up 9.81% year-over-year.

• Basic and diluted EPS: RMB 0.21, up 10.53% year-over-year.

• Operating cash flow: RMB 195 million, down 77.13% year-over-year.

• Gross margin improved as cost of sales declined to RMB 834 million from RMB 1.01 billion.

Outlook and guidance

• Management highlighted increased market promotion expenses as part of domestic market expansion and deepening.