Hubei Zhenhua Chemical Co Ltd Reports Strong H1 2025 Performance

Hubei Zhenhua Chemical Co Ltd, a leading company in the chemical sector specializing in chromium compounds, has announced its financial results for the first half of 2025. The company, headquartered in Huangshi, China, and listed on the Shanghai Stock Exchange, reported a robust increase in both revenue and net profit.

Financial Highlights

  • Revenue Growth: The company achieved a total operating revenue of 21.90 billion CNH, marking a 10.17% increase compared to the same period last year.
  • Net Profit: Net profit for the period stood at 2.98 billion CNH, reflecting a significant 23.62% year-over-year growth.
  • Earnings Per Share: Basic earnings per share were reported at 0.42 CNH.

Cost and Expense Analysis

  • Operating Costs: Operating costs amounted to 15.59 billion CNH, up by 5.49% from the previous year.
  • Other Expenses: Other expenses increased by 27.16%, totaling 2.99 billion CNH.

Asset and Cash Flow Overview

  • Total Assets: By the end of the reporting period, total assets were valued at 52.12 billion CNH.
  • Accounts Receivable: Accounts receivable stood at 5.74 billion CNH.
  • Cash Flow: The net cash flow from operating activities was 313.94 million CNH, with cash received from sales of goods and services amounting to 11.44 billion CNH.

Financial Strengths and Risks

The company’s financial health is generally strong, with several notable strengths:

  • Profitability: The net asset profit margin averaged 16.33%, indicating excellent earning ability.
  • Profitability and Growth: The operating profit margin averaged 12.98%, showcasing outstanding profitability. The growth in operating profit year-over-year averaged 36.93%, highlighting exceptional growth potential.
  • Asset Management: The total asset turnover ratio averaged 0.89 times per year, reflecting efficient operations.
  • Liquidity: The current ratio was 2.44, demonstrating strong short-term debt-paying ability.

However, there are areas of concern:

  • Receivables: The average accounts receivable turnover rate was 7.62 times per year, indicating significant pressure on collections.
  • Inventory Management: The inventory turnover rate averaged 4.10 times per year, suggesting challenges in inventory liquidation.

Market Position

As of August 12, 2025, Hubei Zhenhua Chemical Co Ltd’s stock closed at 16.5 CNH, with a market capitalization of 10.16 billion CNH. The price-to-earnings ratio stood at 23.203. The company’s stock has experienced a 52-week high of 17.4714 CNH on June 5, 2025, and a low of 7.12857 CNH on September 22, 2024.

For more detailed insights, stakeholders can refer to the company’s half-yearly report and other financial disclosures available on their website and the Shanghai Stock Exchange.