Ruichang International Holdings (1334) H2 2024 earnings summary

Executive summary

• FY2024 revenue fell 18.4% YoY to RMB444.2m; net profit declined 81.3% to RMB10.3m as delayed orders, lower gross margin and higher selling and administrative costs weighed on results.

• Adjusted net profit, excluding listing expenses, was RMB25.2m versus RMB67.8m in 2023.

Financial highlights

• Gross profit declined 25.3% YoY to RMB143.0m; gross margin fell 3.0 percentage points to 32.2%.

• Operating expenses included selling costs of RMB27.4m, administrative expenses of RMB50.4m and R&D expenses of RMB31.6m; finance costs were RMB6.2m.

• Profit before tax was RMB14.9m versus RMB67.5m; income tax expense fell to RMB4.5m from RMB12.3m.

• Total comprehensive income was RMB13.0m versus RMB54.7m; basic and diluted EPS was RMB2.38 cents versus RMB14.72 cents.

Outlook and guidance

• Strategy prioritizes core equipment, key customer projects, refinery renovation and maintenance work, product quality, cost reduction and profitability improvement.

• R&D priorities include product upgrades for industrial transformation, energy efficiency and emissions reduction, and extensions into green technologies and new applications.

• An office opened in Dubai at year-end 2024 to develop customer relationships and pursue project opportunities in key Middle East markets.