MeiHua Holdings Group (600873) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 was RMB 6.04 billion, down 12.97% year-over-year due to lower prices for core products despite higher sales volumes in some segments.

• Net profit attributable to shareholders for Q3 was RMB 521 million, a 33.96% decrease year-over-year, mainly from reduced gross margin as product price declines outpaced raw material cost reductions.

• For the first nine months, revenue was RMB 18.68 billion, down 8.99% year-over-year; net profit attributable to shareholders was RMB 1.995 billion, down 7.65%.

Financial highlights

• Gross margin for Q3 dropped to 17.65% from 18.48% a year ago.

• Basic and diluted EPS for Q3 were RMB 0.18, down 33.33% year-over-year; for the first nine months, EPS was RMB 0.68, down 5.56%.

• Net cash flow from operating activities for the first nine months was RMB 4.09 billion, down 16.35% year-over-year.

• Total assets at Q3-end were RMB 23.53 billion, up 1.63% from year-end 2023.

• Shareholders’ equity at Q3-end was RMB 14.72 billion, up 3.92% from year-end 2023.

Outlook and guidance

• Management is focused on improving quality and efficiency, increasing dividend frequency, and enhancing investor returns.