Befar Group (601678) Q2 2024 earnings summary

Executive summary

• H1 revenue rose 33.02% YoY to RMB4.56bn, while attributable net income fell 29.85% to RMB105.1m amid weaker prices, higher costs and expenses.

• Major product output exceeded H1 plans and reached records; the period’s financial statements were unaudited.

Financial highlights

• Revenue increased 33.02% YoY to RMB4.557bn; operating costs rose 39.75% to RMB3.967bn, outpacing sales growth.

• Attributable net income was RMB105.14m, down 29.85% YoY; excluding non-recurring items, it was RMB105.46m, down 23.88%.

• Consolidated operating profit fell 45.44% YoY to RMB112.0m; net profit was RMB105.1m versus RMB158.0m a year earlier.

• Operating cash flow was RMB228.8m, down 21.51% YoY; investing cash outflow was RMB959.5m and financing cash inflow was RMB813.3m.

Outlook and guidance

• C3/C4 project execution continues: the propane pipeline is fully connected, PDH and ammonia units are running steadily, and PO/MTBE construction and trial-production preparations are progressing.

• Port upgrades, including a 50,000-tonne channel and berth works, remain underway; an electronic-chemicals project’s first phase passed environmental review.