Tongwei (600438) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 was RMB 24.48 billion, down 34.47% year-over-year; YTD revenue was RMB 68.27 billion, down 38.73% year-over-year.

• Net loss attributable to shareholders in Q3 was RMB 844 million, with a YTD net loss of RMB 3.97 billion, both showing significant declines from the prior year.

• Basic EPS for Q3 was -0.1885 RMB, and YTD was -0.8881 RMB, reflecting a sharp decrease from the previous year.

Financial highlights

• Gross margin and net margin deteriorated significantly due to a sharp drop in photovoltaic industry chain prices, impacting main product prices.

• Operating profit for the first nine months was -RMB 5.2 billion, compared to RMB 24.77 billion profit in the same period last year.

• Cash flow from operating activities for the first nine months was RMB 2.99 billion, down 85.79% year-over-year.

• Total assets increased 20.41% to RMB 197.91 billion as of September 30, 2024.

• Shareholders’ equity decreased 16.25% to RMB 51.53 billion.

Outlook and guidance

• The company attributes the revenue and profit decline to a significant drop in photovoltaic product prices and expects continued industry pressure.