Cathay Biotech (688065) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 reached RMB 770.79 million, up 44.06% year-over-year, driven by increased sales and new product capacity expansion.

• Net profit attributable to shareholders for Q3 was RMB 97.73 million, a 35.69% increase compared to the same quarter last year.

• Excluding non-recurring items, net profit rose 84.38% year-over-year in Q3, reflecting strong core business growth.

Financial highlights

• Year-to-date revenue totaled RMB 2.22 billion, up 41.49% year-over-year.

• Year-to-date net profit attributable to shareholders was RMB 345.18 million, up 9.97% year-over-year.

• Basic and diluted EPS for Q3 were both RMB 0.17, up 30.77% year-over-year; year-to-date EPS was RMB 0.59, up 9.26%.

• Operating cash flow for the first nine months was RMB 676.02 million, up 27.48% year-over-year.

• R&D investment in Q3 was RMB 68.74 million, up 70.79% year-over-year; R&D accounted for 8.92% of revenue.

Outlook and guidance

• Management attributes growth to seizing market opportunities, enhanced sales efforts, and ramp-up of new product (sebacic acid) capacity.

• Continued focus on R&D investment to support future product and market expansion.