Xiamen Tungsten Co (600549) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 was ¥17.16 billion, down 8.37% year-over-year, while net profit attributable to shareholders rose 28.47% to ¥1.02 billion.

• Operating cash flow increased 83.02% year-over-year to ¥1.83 billion.

• Gross margin and profitability improved despite lower sales, driven by product mix and cost controls.

• Maintained stable operations across three main business lines: tungsten-molybdenum, rare earths, and new energy materials.

• Significant profit growth was driven by strong performance in the tungsten and molybdenum segment.

Financial highlights

• Revenue: ¥17.16 billion, down 8.37% year-over-year.

• Net profit attributable to shareholders: ¥1.02 billion, up 28.47% year-over-year.

• Operating profit reached ¥1.89 billion, up 29.62% year-over-year.

• Basic and diluted EPS: ¥0.7186, up 28.14% year-over-year.

• Total assets at period end were ¥40.67 billion, up 3.56% from the start of the year.

Outlook and guidance

• H2 2024 focus on resource security, technology innovation, and international advanced manufacturing.

• Plans to accelerate new mine construction, optimize supply chain, and expand key projects in tungsten, rare earths, and battery materials.

• Continued divestment of real estate business and pursuit of A-share refinancing.

• Profit growth is expected to continue, supported by the robust tungsten and molybdenum business.