Hangzhou First Applied Material (603806) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was RMB 4.41 billion, down 26.90% year-over-year due to lower sales prices for photovoltaic encapsulant and backsheet products.

• Net profit attributable to shareholders for Q3 was RMB 329.57 million, a 39.67% decrease year-over-year, impacted by lower gross margins and increased forex losses.

• Nine-month revenue reached RMB 15.17 billion, down 8.86% year-over-year; net profit for the period was RMB 1.26 billion, down 12.08%.

Financial highlights

• Basic EPS for Q3 was RMB 0.12, down 42.86% year-over-year; nine-month EPS was RMB 0.48, down 12.73%.

• Operating cash flow for the first nine months was RMB 2.79 billion, a significant improvement from the prior year.

• Total assets at Q3-end were RMB 21.72 billion, a slight decrease from year-end 2023.

• Shareholders' equity increased 5.11% to RMB 16.39 billion compared to year-end 2023.

Outlook and guidance

• Management attributes declines to lower product prices, reduced sales volumes, and forex losses, with no explicit forward guidance provided.