Ningbo Shanshan (600884) Q3 2024 earnings summary

Executive summary

• Operating income for the first three quarters of 2024 was RMB 13.28 billion, down 9.69% year-over-year.

• Net profit attributable to shareholders was RMB 23.21 million, a 98.07% decrease year-over-year.

• Performance decline attributed to industry cycle fluctuations, fierce market competition, divestment of non-core assets, and absence of prior year investment income from electrolyte business.

• Anode material and polarizer businesses achieved RMB 13.24 billion in revenue and RMB 517 million in net profit.

Financial highlights

• Operating income for Q3 2024: RMB 4.46 billion, down 14.84% from Q3 2023.

• Net profit attributable to shareholders in Q3 2024: RMB 5.64 million, down 97.02% year-over-year.

• Basic and diluted EPS for Q3 2024: RMB 0.003, down 97.81% year-over-year.

• Net cash flow from operating activities for the first three quarters: RMB 1.00 billion, a significant improvement from negative RMB 1.55 billion last year.

• Weighted average return on net assets for Q3 2024: 0.027%, down 0.811 percentage points year-over-year.

Outlook and guidance

• Company continues to focus on core businesses, optimize product structure, and deepen customer cooperation.

• Strategic adjustments and cost reduction initiatives are expected to support recovery in profitability.