China Sunsine Chemical Holdings (QES) H2 2024 earnings summary

Executive summary

• FY2024 revenue rose 1% YoY to RMB3,515.5 mln, while record sales volume of 214,094 tonnes supported a 14% increase in net profit to RMB423.9 mln.

• Profit before tax increased 29% to RMB585.1 mln despite ASP pressure and intense competition.

• A strong cash position, zero debt and capacity expansion underpin the proposed FY2024 dividend increase.

Financial highlights

• FY2024 gross profit rose 6% to RMB850.0 mln; gross margin expanded 1.3 pts to 24.2%.

• FY2024 EPS was RMB44.34 cents, up 15% YoY; net profit increased from RMB372.4 mln to RMB423.9 mln.

• 2H2024 revenue was RMB1,766.4 mln, gross profit RMB416.4 mln, and net profit RMB235.1 mln, up 32% YoY.

• Other income was RMB110.4 mln, including RMB55.6 mln interest income, RMB33.2 mln government compensation and RMB28.9 mln scrap sales; other gains of RMB32.3 mln were primarily FX gains.

Outlook and guidance

• 2025 outlook includes risks from high interest rates, geopolitical tensions, trade-war risks and domestic competition; stimulus and private-sector support may bolster confidence.

• Management plans to maintain sales-production equilibrium and targets efficiency, waste reduction, cash-flow management and sustainable growth.

• The 30,000-tonne-per-year insoluble sulphur Phase 2 is expected to begin trial runs in 1H2025; timing for the 40,000-tonne MBT Phase 2 is unannounced.