Citic Pacific Special Steel Group (000708) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 was ¥57.01 billion, down 2.26% year-over-year; net profit attributable to shareholders was ¥2.73 billion, down 10.34% year-over-year.

• Sales volume reached 9.52 million tons, with exports of 1.12 million tons; key product segments like bearing steel and automotive steel saw double-digit growth.

• The company maintained industry-leading positions in high-end special steel, with robust innovation and digital transformation initiatives.

• Cash flow from operating activities increased 13.7% year-over-year to ¥5.67 billion.

Financial highlights

• Operating income: ¥57.01 billion, down 2.26% year-over-year.

• Net profit attributable to shareholders: ¥2.73 billion, down 10.34% year-over-year.

• Basic EPS: ¥0.54, down 10% year-over-year.

• Gross margin: 12.3%, down 1.32 percentage points year-over-year.

• Cash and cash equivalents at period end: ¥6.65 billion.

Outlook and guidance

• The company expects continued growth in high-end special steel demand, driven by manufacturing upgrades and import substitution.

• Focus remains on cost reduction, efficiency improvement, and innovation to counter industry headwinds.

• No interim dividend distribution planned for H1 2024.