Sichuan Yahua Industrial Group (002497) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 was ¥1.99 billion, down 38.91% year-over-year; YTD revenue was ¥5.92 billion, down 37.45% year-over-year.

• Net profit attributable to shareholders in Q3 was ¥52.43 million, up 136.57% year-over-year; YTD net profit was ¥154.61 million, down 80.85% year-over-year.

• Cash flow from operating activities in Q3 was ¥559.65 million, up 443.50% year-over-year.

Financial highlights

• Gross margin and net margin declined due to a sharp drop in lithium salt product prices compared to last year.

• Operating costs fell 37.54% year-over-year, reflecting lower procurement prices for lithium resources.

• Basic and diluted EPS for Q3 were ¥0.0454, up 136.57% year-over-year; YTD EPS was ¥0.1341, down 80.85% year-over-year.

• Total assets at Q3-end were ¥13.77 billion, down 5.77% from year-end 2023.

Outlook and guidance

• Kamativi lithium mine phase II is in trial production and expected to be operational in 2024.

• Remaining funds from the non-public share issuance will continue to support the third phase of the Ya'an Lithium high-grade lithium salt project.