China Hainan Rubber Industry Group (601118) H2 2024 earnings summary

Executive summary

• Revenue reached RMB 49.67 billion, up 31.8% year-over-year, driven by higher sales prices and volumes.

• Net profit attributable to shareholders was RMB 103 million, down 65.2% compared to the previous year.

• Operating cash flow increased 22.9% year-over-year to RMB 1.51 billion.

• Gross margin improved by 1.17 percentage points to 2.97% as cost controls and product mix improved.

• Board proposes a cash dividend of RMB 0.109 per 10 shares, totaling RMB 46.65 million, representing a 45.12% payout ratio.

Financial highlights

• Operating income: RMB 49.67 billion, up 31.8% year-over-year.

• Net profit attributable to shareholders: RMB 103 million, down 65.2% year-over-year.

• Basic EPS: RMB 0.0242, down 65.13% year-over-year.

• Operating cash flow: RMB 1.51 billion, up 22.9% year-over-year.

• Total assets: RMB 36.07 billion, up 6.24% from the previous year-end.

Outlook and guidance

• 2025 revenue and profit growth expected, with processing volume target of 1.1 million tons and sales/exports of 3.8 million tons (excluding managed companies).

• Focus on cost reduction, technology innovation, and international expansion to enhance competitiveness.

• Industry supply to grow moderately, with regional differentiation and policy support for domestic demand.