Beijing Easpring Material Technology (300073) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 was ¥1.98 billion, down 52.10% year-over-year; net income attributable to shareholders was ¥177 million, down 68.66% year-over-year.

• For the first nine months, revenue was ¥5.53 billion, down 55.95% year-over-year; net income attributable to shareholders was ¥464 million, down 68.87% year-over-year.

• The decline in revenue and profit was mainly due to a significant drop in raw material prices, leading to lower product prices.

Financial highlights

• Operating cash flow for the first nine months was ¥1.15 billion, down 36.31% year-over-year.

• Basic and diluted EPS for Q3 was ¥0.3503, down 68.66% year-over-year; for the first nine months, EPS was ¥0.9166, down 68.88% year-over-year.

• Gross margin and net margin both declined sharply due to lower sales prices and higher financial expenses.

• Total assets at Q3-end were ¥16.89 billion, down 2.99% from year-end 2023.

Outlook and guidance

• Management attributes the performance decline to market-driven price drops and expects continued pressure if raw material prices remain low.