Ruichang Intl delivered a challenging QQ1 2025, underscored by a material revenue contraction and expanded losses. Revenue for the quarter was 75.90 million CNY, down 32.5% year-over-year and 30.8% quarter-over-quarter, while gross profit reached 20.57 million CNY for a gross margin of approximately 27.11%. Despite a relatively healthy gross margin, the company posted EBITDA of -16.81 million CNY and a net loss of -18.98 million CNY, translating to an operating margin of -23.50% and a net margin of -25.01%. The result reflects continued pressure on demand for petrochemical equipment and an unfavorable cost/recurring expense mix; R&D spend (11.24 million CNY) remains meaningful, while SG&A (27.17 million CNY) consumes a sizable portion of revenue.
On the balance sheet, Ruichang maintains tangible liquidity with cash and cash equivalents of 92.73 million CNY and total cash plus short-term investments of 101.99 million CNY, alongside total equity of 330.09 million CNY. The current ratio stands around 1.78x, and total liabilities of 430.42 million CNY imply moderate leverage (net debt approximately 105.49 million CNY). A sizable accumulated other comprehensive income balance (330.05 million CNY) is notable and may reflect translation or hedge effects, but it does not mask the near-term profitability and cash-generation challenges.
With no formal management guidance disclosed in the available materials, investors should focus on early indicators such as order intake, backlog evolution, and any signs of stabilization in refinery capex and environmental compliance spend. The near-term risk remains elevated given the cyclicality of petrochemical capex, while the potential upside hinges on a rebound in Chinese refinery investment and a more favorable product mix or services-led revenue growth.â