China Risun Group Limited delivered a cautious Q1 2025, with revenue of 10.2743 billion CNY, down 18.49% year over year and 7.99% quarter over quarter. Despite the revenue decline, operating income rose 5.93% year over year and 26.89% quarter over quarter to 408.16 million CNY, signaling improving operating leverage amid a challenging pricing environment for coke and coking chemicals. EBITDA stood at 861.48 million CNY, producing an EBITDA margin of 8.39%, while gross profit was 843.0 million CNY for a gross margin of 8.20%. Net income was 14.32 million CNY, with a net margin of 0.14%, reflecting a substantial drag from other non-operating items (total other income/expenses net of -338.70 million CNY) and a modest tax outlay of 26.00 million CNY on pretax income of 69.46 million CNY.
The quarter shows a stark contrast between improving operating performance and the drag from non-operating costs. The positive trend in operating income QoQ suggests better cost control and potential favorable mix, but the bottom line remains susceptible to volatility in non-operating items and macro cyclical forces tied to steel and chemical demand. With a weighted average share count of approximately 4.339 billion and basic EPS of 0.0033 CNY, the stock’s earnings quality remains pressured by the outsized impact of non-operating items relative to efficient core operations.
Looking ahead, management’s commentary (where available) and industry signals imply ongoing sensitivity to Chinese steel demand, coke pricing, energy costs, and regulatory dynamics within the chemical supply chain. Absent a clear forward guidance in the available materials, investors should monitor quarterly progression in revenue momentum, operating margin stability, and any improvement in the contribution from non-operating items. The balance of risk and potential upside hinges on cyclical recovery in the steel sector, stabilizing input costs, and further cost discipline to translate operating gains into stronger earnings.