Red Avenue New Materials Group (603650) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 reached RMB 856.05 million, up 9.41% year-over-year.

• Net profit attributable to shareholders was RMB 160.15 million, a 10.92% increase year-over-year.

• Adjusted net profit (excluding non-recurring items) surged 88.77% year-over-year to RMB 159.89 million.

• Major overseas expansion and equity acquisition initiatives were undertaken during the quarter.

Financial highlights

• Operating cash flow dropped 60.25% year-over-year to RMB 18.01 million due to increased inventory and timing of collections.

• Basic and diluted EPS both rose to RMB 0.27, up 12.5% year-over-year.

• Total assets at quarter-end were RMB 8.70 billion, up 3.5% from year-end 2024.

• Shareholders’ equity increased 2.32% to RMB 3.43 billion.

Outlook and guidance

• Strategic focus on overseas expansion with a new rubber additives plant in Thailand and increased control in a key subsidiary.