Metallurgical Corporation of China (1618) H1 2024 earnings summary

Executive summary

• Operating revenue for H1 2024 was RMB298.84 billion, down 10.65% year-over-year due to declines in engineering contracting and real estate segments; net profit attributable to shareholders was RMB4.15 billion, a 42.50% decrease compared to H1 2023.

• Net profit was RMB4.70 billion, down 45.84% year-over-year; basic EPS was RMB0.11, down from RMB0.26 in H1 2023.

• Newly signed contracts totaled RMB677.80 billion, down 6.11% year-over-year, but overseas contracts surged 92.1% to RMB43.54 billion.

• Total assets increased 14.20% to RMB755.55 billion as of June 30, 2024; shareholders’ equity rose 1.23% to RMB170.06 billion.

• The company maintained its leading position in metallurgical construction and expanded in overseas and emerging markets.

Financial highlights

• Operating revenue: RMB298.84 billion (H1 2024), down 10.65% year-over-year.

• Net profit: RMB4.70 billion, down 45.84% year-over-year.

• Net profit attributable to shareholders: RMB4.15 billion, down 42.50% year-over-year.

• Basic EPS: RMB0.11, down from RMB0.26 in H1 2023.

• Net cash flow from operating activities: -RMB28.41 billion, a further decline from -RMB14.52 billion in H1 2023, reflecting extended payment cycles and slower collections.

• Total assets: RMB755.55 billion, up 14.20% from end-2023; shareholders’ equity: RMB170.06 billion, up 1.23% from end-2023.

Outlook and guidance

• The company expects continued pressure in real estate and infrastructure markets but anticipates gradual improvement from supportive policies in H2 2024.

• Focus remains on high-quality development, cost control, risk prevention, and expanding overseas and emerging business segments.

• Emphasis on innovation and adapting to macroeconomic and industry challenges.

• No interim dividend or capital reserve transfer was proposed for H1 2024.