Anchun International Holdings (BTX) H1 2024 earnings summary

Executive summary

• 1H24 revenue fell 11% YoY to RMB66.7m; gross profit declined 32% to RMB10.4m, and attributable net loss was RMB3.56m versus net profit of RMB0.659m in 1H23.

• Non-fertiliser industries contributed RMB47.0m, or 70.4% of revenue, as diversification continued.

Financial highlights

• Cost of sales decreased 5% to RMB56.269m, slower than the 11% revenue decline; research expenses rose 59% to RMB4.281m, mainly on waste heat boiler tube bundle improvement work.

• Marketing and distribution expenses rose 7% to RMB3.015m; administrative expenses were broadly unchanged at RMB10.408m YoY.

• Operating cash flow was RMB11.286m, compared with RMB2.873m used in 1H23; cash and cash equivalents ended at RMB88.055m.

Outlook and guidance

• Order book at 30 June 2024 was RMB162.9m, including RMB103.5m from non-fertiliser industries; the prior year-end balances were RMB175.1m and RMB123.3m, respectively.

• Unsatisfied or partially unsatisfied performance obligations totalled RMB162.870m; RMB106.799m was expected to be recognised as FY24 revenue and RMB56.071m in FY25.

• Continued R&D and exploration of applications for patented technologies were priorities, with green ammonia, green methanol and green hydrogen identified as emerging opportunities amid energy transformation.