Dirui Industrial Co (300396) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 was ¥297.17 million, down 15.97% year-over-year; net profit attributable to shareholders was ¥27.33 million, down 62.28% year-over-year.

• Year-to-date revenue reached ¥1.18 billion, up 12.10% year-over-year, but net profit fell 17.80% to ¥192.58 million.

• International business faced delays due to product registration issues, while domestic sales focused on basic medical instruments with lower margins.

• Company is implementing cost reduction and efficiency measures, aiming to boost reagent product sales and accelerate high-speed equipment installations.

Financial highlights

• Q3 net profit excluding non-recurring items was ¥25.94 million, down 63.86% year-over-year.

• Operating cash flow for Q3 was negative ¥299.37 million, a 637.22% decline year-over-year due to lower cash receipts and higher payments.

• Total assets at quarter-end were ¥3.07 billion, down 7.52% from year-end 2023; shareholders' equity rose 2.80% to ¥2.10 billion.

• Basic and diluted EPS for Q3 were ¥0.1002, down 62.47% year-over-year.

• Non-recurring gains in Q3 included government subsidies and fair value changes totaling ¥1.40 million.

Outlook and guidance

• International business is recovering as planned; domestic market will focus on increasing reagent sales and high-speed equipment deployment.

• Company will continue cost control and efficiency initiatives to support stable, healthy growth.