Beijing Scitop Bio-tech Co (300858) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 was ¥138.05 million, down 1.34% year-over-year; net profit attributable to shareholders rose 7.89% to ¥43.51 million.

• Core business in edible probiotics maintained strong growth, with segment revenue up 18.15% year-over-year.

• Animal and plant microecological products saw revenue surge 86.02% year-over-year, driven by new production capacity.

• R&D investment increased 6.18% year-over-year, accounting for 11.63% of revenue, with 9 new patents granted.

• Gross margin improved to 54.98%, up 3.05 percentage points year-over-year.

Financial highlights

• Operating cash flow was ¥50.21 million, up 9.95% year-over-year.

• Total assets at period-end reached ¥1.82 billion, up 0.48% from year-end 2023.

• Basic and diluted EPS were both ¥0.17, up 13.33% year-over-year.

• Adjusted net profit (excluding non-recurring items) rose 17.30% year-over-year to ¥37.64 million.

• Non-recurring gains included government subsidies of ¥3.66 million and asset disposal gains of ¥0.57 million.

Outlook and guidance

• Management expects continued rapid growth in edible probiotics demand, with the segment as the main revenue driver.

• Ongoing expansion in animal/plant microecological products and pet food sectors is anticipated.

• R&D and production base projects are progressing, with some delays; full operation expected by mid-2025.