Henan Shenhuo Coal Industry and Electricity Power (000933) Q3 2024 earnings summary

Executive summary

• Revenue for the first nine months of 2024 reached ¥28.31 billion, down 1.10% year-over-year, with net profit attributable to shareholders at ¥3.54 billion, a 13.75% decrease year-over-year.

• Basic EPS for the period was ¥1.578, down 13.77% year-over-year; gross margin and profitability declined amid industry headwinds.

• The company completed the full commissioning of its 60,000-ton battery foil project in August 2024, enhancing its new energy materials capacity.

Financial highlights

• Q3 revenue was ¥10.09 billion, up 6.02% compared to the same quarter last year; Q3 net profit attributable to shareholders was ¥1.25 billion, down 8.00% year-over-year.

• Net cash flow from operating activities for the first nine months was ¥6.35 billion, down 9.76% year-over-year.

• Total assets at quarter-end were ¥56.15 billion, a 2.95% decrease from the previous year-end; shareholders' equity increased 9.11% to ¥21.63 billion.

• Non-recurring gains for the period included government subsidies and asset disposals, totaling ¥125 million.

Outlook and guidance

• The company is advancing the spin-off and domestic listing of its subsidiary, Shenhuo New Materials, to strengthen its aluminum processing business and optimize its industrial structure.

• Strategic focus remains on expanding high-value new energy materials and improving operational efficiency.