Weihai Guangwei Composites (300699) investor relations material

Executive summary

• YTD revenue was RMB 1.939bn, down 2.39% YoY; attributable net income fell 51.94% to RMB 199.4m, while Q3 attributable net income was RMB 0.55m, down 99.63%.

• Q3 earnings pressure reflected lower equipment carbon-fiber and carbon-beam revenue; operating cash flow was negative YTD as sales collections declined.

Financial highlights

• Q3 revenue was RMB 619.9m, down 21.06% YoY; YTD revenue was RMB 1.939bn, down 2.39%.

• Q3 attributable net income was RMB 0.55m, down 99.63%; YTD attributable net income was RMB 199.4m, down 51.94%.

• Adjusted for non-recurring items, Q3 attributable net loss was RMB 12.3m, down 109.45%; YTD adjusted net income was RMB 171.4m, down 54.41%.

• YTD non-recurring gains, net of tax and minority interests, totaled RMB 27.9m.

Segment performance

• YTD sales: fiber RMB 982m (-2.09% YoY); energy new materials RMB 633m (-2.91%); general new materials RMB 156m (-13.91%).

• YTD sales: composite technology RMB 60m (-2.75% YoY); precision machinery RMB 90m (+33.86%); Guangsheng Technology RMB 15m (-3.62%).

• Q3 equipment carbon-fiber revenue declined 31.60% YoY and carbon-beam revenue declined 25.00%, cited as key drivers of the quarterly earnings drop.