Wedge Industrial (000534) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached ¥502.75 million, up 5.72% year-over-year; net profit attributable to shareholders was ¥97.99 million, up 12.49% year-over-year.

• Main businesses include microecological active bacteria products and high-temperature alloy R&D, production, and sales.

• The company continued to optimize cost management and enhance profitability amid operational pressures.

Financial highlights

• Operating income: ¥502.75 million (+5.72% YoY); net profit attributable to shareholders: ¥97.99 million (+12.49% YoY).

• Net profit excluding non-recurring items: ¥85.31 million (+11.01% YoY).

• Basic EPS: ¥0.1975 (+14.43% YoY); diluted EPS: ¥0.1922 (+12.60% YoY).

• Operating cash flow: ¥2.83 million (+31.02% YoY).

• Total assets at period end: ¥3.33 billion (+6.76% from year-end 2023); net assets attributable to shareholders: ¥1.15 billion (-5.20%).

• Gross margin for key products: '金双歧' 88.00%, '定君生' 90.89%.

Outlook and guidance

• The company will continue to focus on microecological and high-temperature alloy businesses, leveraging national policy support and stable cash flow from core operations to drive growth.

• No interim dividend, bonus shares, or capital increase from reserves planned for H1 2024.