China Jushi Co. (600176) Q3 2024 earnings summary

Executive summary

• Revenue for the first nine months of 2024 reached RMB 11.63 billion, up 1.81% year-over-year, while net profit attributable to shareholders fell 42.66% to RMB 1.53 billion due to lower product prices and reduced asset disposal gains.

• Gross margin and profitability were pressured by increased sales volume but declining prices, especially in the core product lines.

Financial highlights

• Q3 revenue was RMB 3.89 billion, with net profit attributable to shareholders at RMB 571.91 million, up 8.27% and down 6.38% year-over-year, respectively.

• Basic and diluted EPS for the first nine months were RMB 0.3830, down 42.66% year-over-year.

• Operating cash flow for the first nine months surged 121% year-over-year to RMB 1.07 billion.

• Total assets at quarter-end were RMB 52.43 billion, up 0.68% from the previous year-end.

• Shareholders' equity increased 1.31% to RMB 29.02 billion.

Outlook and guidance

• Management attributes profit decline to increased sales volume offset by lower prices and asset disposal gains, indicating continued margin pressure if pricing does not recover.