Honghua Group (019283746565748392, 0100196.HK) reported an annual revenue of 5.493 billion yuan and a net profit attributable to the parent company of 0.38 billion yuan.

Gelonghui, March 25 — Honghua Group (00196.HK) announced its annual results. For the year 2025, the group recorded revenue of RMB 5,493.3 million, a decrease of RMB 140.1 million or 2.5% compared to the same period last year; gross profit was RMB 684.5 million, an increase of RMB 8.0 million or 1.2% year-on-year; gross profit margin was 12.5% (up 0.5 percentage points from the same period last year). The main reasons for the revenue decline during the reporting period were discontinuous fracturing services operations and the company’s proactive adjustment of its business structure to shrink low-margin business segments. The group continued to promote lean management to reduce costs and improve efficiency.

During the reporting period, the group’s efforts in managing loss-making subsidiaries were significant, with the number of loss-making subsidiaries decreasing by 50% year-on-year and the loss reduction amounting to RMB 69 million, a decrease of 58.73%. The group further reduced financing costs by 0.73 percentage points to 2.61%, interest expenses decreased by RMB 34.42 million year-on-year, financial expense ratio decreased by 0.6 percentage points to 1.7%, sales expense ratio decreased by 0.3 percentage points to 3.5%, and management expense ratio decreased by 0.3 percentage points to 6.6%. Net profit attributable to shareholders of the parent company was RMB 0.38 billion, a substantial increase of more than four times year-on-year, indicating a significant improvement in operating performance.