New Hope Liuhe (000876) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 was ¥49.58 billion, down 28.62% year-over-year, mainly due to divestment of poultry and food processing segments.

• Net loss attributable to shareholders was ¥1.22 billion, a 59.18% reduction year-over-year.

• Operating cash flow improved 134.73% year-over-year to ¥4.65 billion.

• Q2 2024 achieved single-quarter profitability after significant loss reduction.

• Strategic focus on core feed and pig businesses, with ongoing cost and efficiency improvements.

Financial highlights

• Gross margin for feed segment was 4.23%, up 0.82 percentage points year-over-year.

• EBITDA/total debt ratio improved to 2.26% from 0.19% year-over-year.

• Cash interest coverage ratio rose to 4.13 from 1.67 year-over-year.

• Total assets at period end were ¥123.97 billion, down 4.35% from year-end 2023.

• Net assets attributable to shareholders were ¥23.06 billion, down 6.91% from year-end 2023.

Segment performance

• Feed business revenue was ¥32.89 billion, down 16% year-over-year; sales volume reached 12.38 million tons.

• Pig segment revenue was ¥14.67 billion, up 3.02% year-over-year; 8.69 million pigs sold.

• Overseas revenue accounted for 20.18% of total, up 5.37 percentage points year-over-year.

• Q2 pig segment returned to profitability due to rising prices and cost controls.