Inner Mongolia Junzheng Energy & Chemical Group (601216) H2 2024 earnings summary

Executive summary

• Revenue reached ¥25.21 billion, up 31.83% year-over-year, driven by new project ramp-ups and expanded product lines including coke, methanol, BDO, and PTMEG.

• Net profit attributable to shareholders was ¥2.80 billion, up 2.96% year-over-year; net profit excluding non-recurring items was ¥2.57 billion, up 7.08%.

• Total assets at year-end were ¥42.82 billion, up 6.59% from the previous year.

• Major new projects, including green degradable plastics, 450MW photovoltaic power, and chemical logistics fleet expansion, were completed and operational.

• Proposed cash dividend of ¥0.15 per share, totaling ¥1.27 billion, representing a payout ratio of 45.14%.

Financial highlights

• Operating income: ¥25.21 billion, up 31.83% year-over-year.

• Net profit attributable to shareholders: ¥2.80 billion, up 2.96% year-over-year.

• Operating cash flow: ¥2.45 billion, up 146.77% year-over-year, mainly due to increased bank acceptance bill discounts.

• Basic EPS: ¥0.3323, up 2.97% year-over-year.

• Gross margin: 18.62%, down 4.3 percentage points year-over-year due to higher costs from new project ramp-ups.

Outlook and guidance

• Focus on optimizing industrial chain, expanding green energy and logistics, and enhancing digital and intelligent operations.

• 2025 priorities include further industrial chain integration, global logistics network expansion, and continued investment in green and digital transformation.

• Management expects continued cost competitiveness and operational efficiency through integrated supply chain and technology upgrades.