China Jushi Co. (600176) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 was RMB 7.74 billion, down 1.16% year-over-year due to increased sales volume but lower prices, resulting in a significant drop in gross profit.

• Net profit attributable to shareholders was RMB 961 million, a 53.41% decrease compared to the same period last year, mainly due to lower product prices despite higher sales volumes.

• The company maintained its global leadership in glass fiber production capacity and continued to optimize product structure and expand domestic and international markets.

• Significant progress was made in green and digital transformation, including the launch of a zero-carbon intelligent manufacturing base in Huai'an.

• No interim dividend or capital increase from reserves was proposed for the reporting period.

Financial highlights

• Operating income: RMB 7.74 billion, down 1.16% year-over-year.

• Net profit attributable to shareholders: RMB 961 million, down 53.41% year-over-year.

• Operating cash flow: RMB 227 million, down 37.94% year-over-year.

• Basic and diluted EPS: RMB 0.2401, down 53.41% year-over-year.

• Gross margin declined due to increased sales volume but lower unit prices.

Outlook and guidance

• The company expects continued challenges from weak demand, intensified competition, and low product prices.

• Will focus on product structure optimization, cost control, and expanding high-end product share.

• Plans to accelerate green and digital transformation, aiming for carbon peak by 2027 and carbon neutrality by 2057.