Huaibei GreenGold Industry Investment (2450) H2 2024 earnings summary

Executive summary

• FY2024 revenue fell 18.7% YoY to RMB236.2m; attributable loss was RMB22.0m versus profit of RMB37.5m in 2023.

• Weaker construction and real estate markets pressured selling prices and concrete demand; aggregate sales volume rose, and Gaoloushan Mine Phase II entered operation.

Financial highlights

• Gross profit declined 32.6% to RMB83.8m; gross margin fell 8 percentage points to 35% from 43% in 2023.

• Operating profit was RMB19.2m versus RMB55.5m; loss before tax was RMB30.4m versus profit before tax of RMB68.0m.

• Net loss was RMB33.9m versus net profit of RMB57.9m; attributable loss was RMB22.0m and basic loss per share was RMB0.08.

Outlook and guidance

• FY2025 aggregate production target is 6.0m tonnes; annual capacity at Gaoloushan Phase II is planned to rise gradually to 8m tonnes.

• Infrastructure projects and regional construction demand are expected to support aggregate sales; plans include pursuing suitable physical-industry acquisitions to expand assets, revenue and profitability.