China Oriental Group Company (581) H2 2024 earnings summary

Executive summary

• Achieved a significant turnaround in 2024, moving from a net loss of RMB196 million in 2023 to a net profit of RMB225 million, driven by cost reductions and efficiency improvements.

• Revenue declined 7.1% year-over-year to RMB43.0 billion due to weak demand and lower steel prices, but gross profit surged 147.1% to RMB1.77 billion.

• EBITDA increased 17.3% to RMB1.5 billion, and basic earnings per share rose to RMB0.04 from a loss per share of RMB0.04 last year.

• Proposed a final dividend of HK$0.01 and a special dividend of HK$0.05 per share for 2024.

Financial highlights

• Sales volume of self-manufactured steel products fell 7.3% to 7.17 million tonnes; trading volume dropped 45%.

• Revenue from self-manufactured steel products decreased 10.6% to RMB24.60 billion; trading revenue down 4.7%.

• Gross profit per tonne increased 186% to RMB143; gross margin rose from 1.4% to 4.2%.

• Adjusted profit (excluding real estate impairments) was RMB266 million, up from RMB4 million in 2023.

• Total assets stable at RMB50.08 billion; debt-to-capital ratio increased to 65.8%.

Outlook and guidance

• Expects gradual improvement in steel demand in 2025 as downstream industries recover, though uncertainties remain.

• Plans to enhance core competitiveness through lean management, product innovation, and green transformation.

• Will continue to invest in high-value-added products, digitalisation, and green energy projects.

• Strategic focus on expanding the NEMM Project and downstream integration.