MeiHua Holdings Group (600873) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 was ¥12.64 billion, down 6.96% year-over-year, mainly due to lower prices for key products despite increased sales volumes in some segments.

• Net profit attributable to shareholders rose 7.51% year-over-year to ¥1.47 billion, driven by product mix optimization and cost control.

• Gross margin improved as raw material costs, especially corn, declined significantly, offsetting price drops in major products.

• The company maintained strong cash flow, with operating cash flow at ¥2.24 billion, and continued capital investments in capacity expansion and R&D.

• No interim dividend or capital increase from reserves was proposed for the half-year period.

Financial highlights

• Operating income: ¥12.64 billion, down 6.96% year-over-year.

• Net profit attributable to shareholders: ¥1.47 billion, up 7.51% year-over-year.

• Basic and diluted EPS: ¥0.50, up 11.11% year-over-year.

• Operating cash flow: ¥2.24 billion, down 1.53% year-over-year.

• Gross margin improved due to lower raw material costs, despite product price declines.

Outlook and guidance

• The company will continue to expand capacity in cost-advantaged and high-demand products, with several new projects expected to come online in H2 2024.

• Focus remains on R&D, automation, and digitalization to drive efficiency and maintain industry leadership.

• Management expects ongoing market volatility but aims to leverage multi-product strategy and cost leadership for stable growth.