Keda Industrial Group (600499) Q2 2024 earnings summary

Executive summary

• Operating revenue for January–June 2024 rose 15.74% year-over-year to RMB 5.49 billion, with overseas business contributing over 60% of total revenue.

• Net profit attributable to shareholders dropped 64.16% year-over-year to RMB 454 million, mainly due to a sharp decline in investment income from Lanke Lithium Industry.

• The company’s core businesses include ceramic machinery, building materials, and strategic investments in lithium-ion battery materials and machinery.

• Building materials output in Africa exceeded 84 million square meters, up 20% year-over-year, with 19 ceramic and 2 sanitary ware production lines in operation.

Financial highlights

• Operating revenue: RMB 5.49 billion (up 15.74% year-over-year).

• Net profit attributable to shareholders: RMB 454 million (down 64.16% year-over-year).

• Net profit after deducting non-recurring items: RMB 400 million (down 66.95% year-over-year).

• Basic and diluted EPS: RMB 0.241 (down 63.54% year-over-year).

• Net cash flows from operating activities: RMB 258 million (up 636.83% year-over-year).

• Gross profit margin for building materials: 30.95% (down 12.69 percentage points year-over-year).

Outlook and guidance

• The company expects positive impact from price increases in African markets in the second half of 2024.

• Plans to further expand building materials business in Sub-Saharan Africa and replicate the model in other developing regions.

• Continued focus on cost reduction, efficiency improvement, and product competitiveness in lithium battery materials.