Fujing Holdings (2497) H1 2024 earnings summary

Executive summary

• H1 2024 revenue rose 5.2% YoY to RMB75.011m, while net profit attributable to owners fell to RMB14.877m from RMB25.322m, mainly due to higher listing and administrative expenses.

• Operations comprised three cultivation facilities with 140 greenhouses and 155,401 sq.m. of gross floor area, focused on potted leafy vegetables in the PRC.

Financial highlights

• Revenue was RMB75.011m versus RMB71.278m; sales volume rose to ~5.0m pots from ~4.7m, while average selling price remained ~RMB15.1 per pot.

• Cost of sales rose 10.4% to RMB46.465m and gross profit declined to RMB28.546m from RMB29.209m, reflecting higher-cost seedlings and revenue growth.

• Operating profit was RMB15.194m versus RMB25.763m; profit attributable to owners was RMB14.877m versus RMB25.322m.

• Listing expenses rose to RMB8.401m from RMB2.150m; administrative and other expenses increased to RMB6.898m from RMB4.704m.

• Biological-asset fair-value gains were RMB1.843m versus RMB3.195m; basic and diluted EPS was RMB3.29 cents versus RMB6.33 cents, and income tax expense was nil.

Outlook and guidance

• Strategic priorities include expanding cultivation capacity, establishing a facility in a new market, building dedicated organic-substrates production and upgrading IT systems.

• Listing proceeds were planned for cultivation and facility expansion, substrate production and IT upgrades; no material change in intended use was anticipated, and financial resources were considered sufficient for working capital.