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Huashi Group’s 2025 Profit Drops Despite Stronger Gross Margins

Story Highlights
  • Huashi Group kept revenue broadly flat in 2025 while lifting gross profit through reduced service costs.
  • Rising expenses, higher credit loss provisions and taxes led to lower profit and EPS for shareholders.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Huashi Group’s 2025 Profit Drops Despite Stronger Gross Margins

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The latest announcement is out from Huashi Group Holdings Limited ( (HK:1111) ).

Huashi Group Holdings Limited reported virtually flat revenue of RMB290.9 million for 2025, edging up 0.8% from 2024, while significantly improving gross profit by 12.9% to RMB180.0 million due to lower service costs. However, higher selling, marketing and administrative expenses, along with increased provisions for expected credit losses and a higher tax charge, weighed on the bottom line.

As a result, profit before tax declined 5.3% to RMB94.9 million and net profit fell 11.4% to RMB71.4 million, with earnings per share dropping to 9.26 RMB cents from 10.46 RMB cents a year earlier. The results signal margin pressure at the operating and net levels despite stronger gross profitability, suggesting stakeholders should watch cost control and credit risk management as key factors for the group’s future earnings resilience.

The most recent analyst rating on (HK:1111) stock is a Hold with a HK$0.28 price target. To see the full list of analyst forecasts on Huashi Group Holdings Limited stock, see the HK:1111 Stock Forecast page.

More about Huashi Group Holdings Limited

Huashi Group Holdings Limited, incorporated in the Cayman Islands and listed in Hong Kong, operates in the services sector and generates its revenue primarily from service-related activities. The group focuses on the PRC market, reporting its financials in Renminbi and deriving income largely from service contracts, which drive its gross profit and overall performance.

Average Trading Volume: 273,551

Technical Sentiment Signal: Buy

Current Market Cap: HK$235M

See more insights into 1111 stock on TipRanks’ Stock Analysis page.

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