Honghua Group (00196) announced its financial results for the year ended December 31, 2025. The group recorded revenue of 5.493 billion yuan, representing a decrease of 2.5% compared to the previous year. Profit attributable to shareholders was 38.32 million yuan, marking a significant increase of 405.8% year-on-year. Earnings per share stood at 0.43 fen.

The group continued to advance its lean management initiatives, achieving cost reduction and efficiency gains. During the reporting period, the management of loss-making subsidiaries yielded notable results, with the number of loss-making entities decreasing by 50% year-on-year. The amount of losses reduced by 69 million yuan, a decline of 58.73% compared to the prior year.

Honghua Group further lowered its financing costs by 0.73 percentage points to 2.61%. Interest expenses decreased by 34.42 million yuan year-on-year. The financial expense ratio dropped by 0.6 percentage points to 1.7%, while the sales expense ratio fell by 0.3 percentage points to 3.5%. The administrative expense ratio also declined by 0.3 percentage points to 6.6%.

Net profit attributable to shareholders of the parent company reached 38 million yuan, reflecting a substantial increase of over four times compared to the previous year, indicating a material improvement in operational efficiency.