Jiangsu Eastern Shenghong (000301) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached RMB 35.47 billion, down 6.03% year-over-year; year-to-date revenue was RMB 108.30 billion, up 4.46% year-over-year.

• Net profit attributable to shareholders was a loss of RMB 1.74 billion in Q3, compared to a profit of RMB 798 million in Q3 2023; year-to-date net profit was a loss of RMB 1.42 billion, down 315.88% year-over-year.

• Net cash flows from operating activities in Q3 were RMB 3.35 billion, a 49.17% decrease year-over-year.

Financial highlights

• Basic earnings per share for Q3 was -0.26 RMB, compared to 0.12 RMB in Q3 2023; year-to-date was -0.21 RMB, down 155.26% year-over-year.

• Weighted average return on net assets for Q3 was -5.19%, compared to 2.12% in Q3 2023.

• Total assets at September 30, 2024, were RMB 208.03 billion, up 9.36% from year-end 2023.

• Owners' equity attributable to shareholders was RMB 33.29 billion, down 6.09% from year-end 2023.

Outlook and guidance

• Management attributed changes in key financial indicators to increased floating income from derivatives, higher receivables from external sales, and increased investments in joint ventures.

• Increased construction in progress and deferred tax assets reflect ongoing project investments and recognition of deductible losses.