Xiamen Tungsten Co (600549) Q3 2024 earnings summary

Executive summary

• Revenue for the first nine months of 2024 was RMB 26.37 billion, down 10.70% year-over-year, while net profit attributable to shareholders rose 20.78% to RMB 1.40 billion.

• The company maintained stable operations across its three main businesses, with overall profitability improving.

Financial highlights

• Q3 revenue was RMB 9.21 billion, down 14.73% compared to the same quarter last year; Q3 net profit attributable to shareholders was RMB 385.79 million, up 4.32%.

• Basic and diluted EPS for the first nine months reached RMB 0.9913, up 20.46% year-over-year.

• Net cash flow from operating activities for the first nine months was RMB 2.29 billion, up 18.23% year-over-year.

• Total assets at quarter-end were RMB 41.35 billion, up 5.28% from the end of last year.

• Shareholders’ equity attributable to the parent was RMB 12.06 billion, up 7.59% from year-end 2023.

Segment performance

• Tungsten and molybdenum business: revenue RMB 13.25 billion, up 7.04% year-over-year; profit RMB 1.96 billion, up 17.34%. Deep-processed tungsten wire sales surged 95% in volume and 52% in revenue.

• New energy materials: revenue RMB 9.88 billion, down 24.69%; profit RMB 386 million, down 13.87%. Lithium cobalt oxide and ternary materials saw strong volume growth but lower revenue and profit due to price declines and competition.

• Rare earth business: revenue RMB 3.20 billion, down 18.25%; profit RMB 180 million, up 61.92%. Magnet material sales rose 15% in volume, with profitability improving each quarter.

• Real estate: revenue RMB 35 million, down 68.38%; profit RMB 68 million, mainly from disposal of Chengdu property, with investment income of RMB 145 million.