New Hope Liuhe (000876) Q3 2024 earnings summary

Executive summary

• Net profit attributable to shareholders for Q3 2024 surged 256.68% year-over-year to ¥1.37 billion, with a nine-month cumulative net profit up 103.97% to ¥153 million.

• Revenue for Q3 2024 was ¥27.63 billion, down 25.91% year-over-year; nine-month revenue totaled ¥77.21 billion, down 27.67%.

• Improved profitability mainly driven by higher hog prices and reduced losses in the pig segment.

Financial highlights

• Basic EPS for Q3 was ¥0.30, up 250% year-over-year; nine-month EPS was ¥0.02, up 102.3%.

• Operating cash flow for Q3 was ¥8.27 billion, up 24.14% year-over-year.

• Total assets at Q3-end were ¥119.96 billion, down 7.45% from year-end 2023.

• Shareholders’ equity at Q3-end was ¥24.31 billion, down 1.87% from year-end 2023.

• Non-recurring gains for Q3 were ¥115 million, mainly from government subsidies and asset disposals.

Outlook and guidance

• Management expects continued improvement in the pig segment as market prices recover, but notes ongoing industry volatility.