Diwang Industrial reported QQ1 2025 revenue of CNY131.44 million, down 9.92% year-over-year and 4.28% quarter-over-quarter. Despite the revenue decline, the company delivered a robust gross margin of 47.96% and an EBITDA of CNY11.26 million, translating to an EBITDA margin of 8.57% and an operating margin of 4.71%. Net income was CNY6.95 million, equating to a net margin of 5.29% and earnings per share (diluted) of CNY0.0097. The quarter benefitted from a positive mix of operating income and other income, with total other income and expenses contributing to a stronger bottom line relative to the prior quarter. While the top-line contraction reflects ongoing competitive dynamics in the coatings and specialty resins landscape, margin resilience signals a favorable cost structure and potential leverage from efficiencies and pricing actions. Investors should monitor demand recovery in key end-markets (automotive, apparel, home furnishings) and raw material cost movements, which remain the primary drivers of quarterly volatility.