China International Holdings (BEH) Q2 2024 earnings summary

Executive summary

• 1H 2024 revenue fell 4.5% YoY to RMB49.50m; gross profit rose to RMB17.57m from RMB8.99m, but net loss widened to RMB108.20m.

• The larger loss was driven mainly by a RMB96.36m share of Huike’s loss, including a major impairment at the joint venture, and RMB11.66m of receivable loss allowances.

Financial highlights

• Revenue was RMB49.503m versus RMB51.846m YoY; cost of sales and services fell to RMB31.931m from RMB42.852m.

• Gross profit increased to RMB17.572m from RMB8.994m; other loss, net was RMB11.135m versus other income of RMB1.925m.

• Loss before tax was RMB106.305m versus RMB6.259m; net loss was RMB108.202m versus RMB5.907m.

• Loss attributable to owners was RMB110.802m; basic and diluted loss per share were RMB142.05 fen versus RMB7.81 fen.

Outlook and guidance

• Cautiously optimistic on general economic conditions over the next 12 months; management plans to focus on cash generation from investment properties and further development of the China water-treatment business.

• Tianjin Lingang’s completed expansion is expected to support increased wastewater treatment and purification capacity in related service areas.

• No dividend was declared or recommended, taking operational and financial cash needs into account.

• No new investment plans are currently intended; the Papua New Guinea project’s viability will be reviewed, while the Liuhe Gold project remains under care.