Xiamen Tungsten Co (600549) Q4 2023 earnings summary

Executive summary

• FY2023 operating profit and net income rose despite lower revenue, as stronger tungsten-molybdenum results offset weakness in energy materials and rare earths.

• Operations focused on three main businesses while actively exiting real estate; the exit made progress during the year.

Financial highlights

• Revenue was 3,942,048.21 (RMB 10,000), down 18.25% YoY; operating profit increased 13.27% to 293,200.47 (RMB 10,000).

• Net income attributable to shareholders rose 10.57% to 159,912.01 (RMB 10,000); adjusted for non-recurring items, net income grew 13.61% to 140,399.07 (RMB 10,000).

• Total profit rose 13.31% to 291,389.22 (RMB 10,000).

Segment performance

• Tungsten-molybdenum revenue was RMB 16.585bn, up 26.03% YoY; total profit increased 61.76%, or 57.72% excluding associate investment income.

• Fine tungsten wire sales reached 86.8bn meters, up 219% YoY, with sales revenue up 169%; cutting-tool revenue grew 9%.

• New-energy battery materials revenue fell 40.06% to RMB 17.229bn and total profit fell 54.99% to RMB 558m; cobaltate sales rose 4%, while ternary-material sales declined 20%.

• Rare-earth revenue fell 10.89% to RMB 5.471bn and total profit fell 55.19% to RMB 142m; sales volumes grew across oxides, metals and magnetic materials.

• Real-estate revenue was RMB 135m and total profit was negative RMB 133m, with losses narrowed by RMB 300m YoY.