Executive Summary
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.”
Key Performance Indicators
QoQ: -30.78% | YoY:-32.50%
QoQ: -40.79% | YoY:-46.34%
QoQ: -384.11% | YoY:-246.76%
QoQ: -3 074.50% | YoY:-429.43%
QoQ: -3 066.67% | YoY:-346.75%
Key Insights
Revenue: 75.90m CNY; YoY -32.50%, QoQ -30.78% (2025 Q1). Gross Profit: 20.57m CNY; Gross Margin: 27.11%.
EBITDA: -16.81m CNY; EBITDA Margin: -22.14%.
Operating Income: -17.84m CNY; Operating Margin: -23.50%.
Net Income: -18.98m CNY; Net Margin: -25.01%.
EPS: -0.0380 CNY; Diluted EPS: -0.0380 CNY; Weighted Avg Shares: 500.0m.
Balance Sheet: Total Assets 778.35m CNY; Total Liabilities 430.42m CNY; Total Equity 330.09m CNY.
Liquidity & Leverage: Cash & Cash Equivalents 92.73m CNY; Cash + Sh...
Financial Highlights
Revenue: 75.90m CNY; YoY -32.50%, QoQ -30.78% (2025 Q1). Gross Profit: 20.57m CNY; Gross Margin: 27.11%.
EBITDA: -16.81m CNY; EBITDA Margin: -22.14%.
Operating Income: -17.84m CNY; Operating Margin: -23.50%.
Net Income: -18.98m CNY; Net Margin: -25.01%.
EPS: -0.0380 CNY; Diluted EPS: -0.0380 CNY; Weighted Avg Shares: 500.0m.
Balance Sheet: Total Assets 778.35m CNY; Total Liabilities 430.42m CNY; Total Equity 330.09m CNY.
Liquidity & Leverage: Cash & Cash Equivalents 92.73m CNY; Cash + Short-Term Investments 101.99m CNY; Current Assets 612.05m CNY; Current Liabilities 343.73m CNY; Current Ratio ~1.78x; Long-Term Debt 86.70m CNY; Short-Term Debt 111.52m CNY; Total Debt 198.22m CNY; Net Debt 105.49m CNY.
Note: The data set includes YoY and QoQ profitability metrics and a detailed quarterly cash flow snapshot where available; however, cash flow from operations for QQ1 2025 is not reported in the provided data.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
75.90M |
-32.50% |
-30.78% |
| Gross Profit |
20.57M |
-46.34% |
-40.79% |
| Operating Income |
-17.84M |
-246.76% |
-384.11% |
| Net Income |
-18.98M |
-429.43% |
-3 074.50% |
| EPS |
-0.04 |
-346.75% |
-3 066.67% |
Management Commentary
No earnings call transcript data is provided in the material. Consequently, key management quotes, thematic takeaways, and strategic guidance from the QQ1 2025 earnings call could not be extracted from the source. Analysts should obtain the official transcript to supplement the quantitative results with management commentary on order intake, backlog, cost controls, and future capex expectations.
Forward Guidance
No explicit management guidance for QQ2 2025 or full-year 2025 was provided in the supplied materials. However, several industry and policy tailwinds could influence Ruichang’s trajectory if capital expenditure recovers in China’s petrochemical sector and environmental compliance spend remains robust. Key factors to monitor:
- Order intake and backlog development for SRU, VOC incineration, catalytic cracking equipment, and related process equipment.
- Capital expenditure cycles in Chinese refineries and petrochemical complex expansions; potential kickbacks from environmental regulations driving emissions-control investments.
- Cost structure stabilization: progress on reducing SG&A intensity and improving gross margin through product mix optimization or pricing actions.
- Services and installation revenue contribution, which can offer more stable revenue streams in a capital-intensive business.
Base case: If refinery capex and environmental spend stabilize or recover modestly in 2025-2026, Ruichang could see a gradual improvement in utilization and profitability, particularly if it expands service-related revenue.
Upside case: A stronger-than-expected rebound in capex coupled with favorable project mix could drive operational leverage and a return toward mid-to-high single-digit operating margins.
Downside case: Prolonged macro weakness, project delays, or price competition could sustain losses and pressure liquidity.