Ruichang International Holdings (1334) H1 2024 earnings summary

Executive summary

• H1 revenue rose 6.2% YoY to RMB224.9m, while net profit fell 20.1% to RMB11.5m amid lower gross margin and increased expenses.

• Adjusted net profit, excluding listing expenses, was RMB19.4m versus RMB22.0m in H1 2023.

Financial highlights

• Revenue was RMB224.9m versus RMB211.8m; gross profit was RMB75.3m versus RMB76.3m.

• Gross margin narrowed to 33.5% from 36.0%; profit before tax was RMB15.5m versus RMB19.9m.

• Net profit was RMB11.5m versus RMB14.4m; basic and diluted EPS was RMB3.07 cents versus RMB3.85 cents.

• Adjusted net profit was RMB19.4m excluding listing expenses of RMB7.9m, versus RMB22.0m excluding RMB7.5m of listing expenses in H1 2023.

Segment performance

• SRU and VOC incineration equipment revenue rose 86.8% YoY to RMB73.1m, driven by increased sales orders.

• Catalytic cracking equipment revenue fell 10.2% to RMB132.7m as customers delayed or postponed orders.

• Process burner revenue was broadly stable at RMB16.6m versus RMB16.4m.

• Heat exchanger revenue fell 70.2% to RMB2.6m after significant H1 2023 orders and no significant H1 2024 orders.