Xingda International (1899) H2 2024 earnings summary

Executive summary

• Revenue grew 3.9% year-over-year to RMB11,940.4 million, driven by higher sales volumes in both domestic and overseas markets.

• Gross profit margin declined by 0.8pp to 18.4% due to intensified competition and lower capacity utilization.

• Net profit attributable to owners dropped 40.1% year-over-year to RMB269.0 million, with basic EPS down 47.4% to RMB14.23 cents.

• No final dividend was proposed for 2024, but a one-off special dividend of 15.0 HK cents per share was approved in January 2025.

• Total sales volume increased 9.3% to 1,428,000 tonnes, with notable growth in radial tire cords for passenger cars (+17.9%).

Financial highlights

• Revenue: RMB11,940.4 million (+3.9% YoY); gross profit: RMB2,194.3 million (-0.3% YoY); gross margin: 18.4% (-0.8pp YoY).

• EBITDA: RMB1,562.6 million (-3.0% YoY); net profit: RMB387.8 million (-39.2% YoY).

• Other income rose 43.7% to RMB208.3 million, mainly from higher bank interest income.

• Distribution and selling expenses increased 35.6% due to higher transportation costs.

• Finance costs fell 12.3% to RMB220.7 million, reflecting lower average borrowing rates.

Outlook and guidance

• Cautiously optimistic for 2025 amid proactive macroeconomic policies and expected automotive market growth.

• Industry faces ongoing challenges from overcapacity, raw material price fluctuations, and global trade barriers.

• Focus on green, lightweight, and recyclable steel cords to align with industry trends and sustainability.