Metallurgical Corporation of China (1618) Q3 2024 earnings summary

Executive summary

• Operating revenue for Q3 2024 was RMB113.78 billion, down 14.37% year-over-year; nine-month revenue was RMB412.62 billion, down 11.71% year-over-year.

• Net profit attributable to shareholders in Q3 surged 177.45% year-over-year to RMB2.68 billion, but nine-month net profit fell 16.53% to RMB6.83 billion.

• Cost reduction and efficiency enhancement initiatives drove significant profit growth in the quarter.

• New contracts signed in the first three quarters totaled RMB891.69 billion, down 9.2% year-over-year; overseas contracts rose 85.2% to RMB60.76 billion.

Financial highlights

• Net profit attributable to shareholders after non-recurring items was RMB2.40 billion in Q3, up 148.41% year-over-year; nine-month figure was RMB5.62 billion, down 29.26%.

• Basic and diluted EPS for Q3 were RMB0.13, up 160% year-over-year; nine-month EPS was RMB0.24, down 22.58%.

• Net cash flow from operating activities for the nine months was negative RMB30.74 billion, compared to negative RMB22.48 billion a year earlier.

• Total assets at quarter-end were RMB725.01 billion, up 9.58% from year-end 2023; net assets attributable to shareholders rose 5.77% to RMB153.87 billion.

Outlook and guidance

• The company continues to focus on cost reduction and efficiency enhancement to support profitability.

• Progress on the planned gratuitous transfer of controlling shares from MCC Group to China Minmetals Corporation is ongoing, with no change in ultimate control.