Zhejiang Sanhua Intelligent Controls Co. (002050) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 reached RMB 7.67 billion, up 19.1% year-over-year.

• Net profit attributable to shareholders was RMB 903 million, a 39.5% increase year-over-year.

• Operating cash flow surged 333.7% to RMB 468 million compared to the same quarter last year.

• Basic and diluted EPS were both RMB 0.24, up 41.2% year-over-year.

Financial highlights

• Gross margin improved as revenue growth outpaced cost increases.

• Net profit excluding non-recurring items was RMB 853 million, up 27.2% year-over-year.

• Total assets at quarter-end were RMB 37.16 billion, up 2.2% from year-end 2024.

• Shareholders’ equity increased 4.8% to RMB 20.23 billion since year-end.

• Non-recurring gains included government subsidies and derivative gains; non-recurring losses included asset disposals.

Segment performance

• Derivative financial asset gains and reduced derivative financial liabilities contributed to profit growth.

• Government subsidies and increased other income supported higher profitability.

• Investment income declined due to higher derivative settlement losses.