Jiangsu Yanghe Distillery ( 002304) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was ¥4.64 billion, down 44.82% year-over-year; YTD revenue was ¥27.52 billion, down 9.14% year-over-year.

• Net profit attributable to shareholders in Q3 was ¥631 million, down 73.03% year-over-year; YTD net profit was ¥8.58 billion, down 15.92%.

• Basic EPS for Q3 was ¥0.4192, down 73.02% year-over-year; YTD basic EPS was ¥5.6947, down 15.92%.

Financial highlights

• Gross margin for YTD was 73.8%, slightly down from 75.8% in the prior year.

• Operating cash flow for Q3 was ¥3.46 billion, down 20.38% year-over-year.

• Total assets at Q3-end were ¥64.16 billion, down 8.07% from year-end 2023.

• Owner's equity attributable to shareholders increased 3% to ¥53.50 billion from year-end.

• Non-recurring gains for Q3 were ¥175.57 million, mainly from government subsidies and investment income.

Outlook and guidance

• Management notes a significant decrease in R&D expenses (down 70.97% YTD), citing fewer R&D projects.

• Company expects continued pressure on revenue and profit due to market and industry headwinds.