Xingda International (1899) H2 2024 earnings summary

Executive summary

• Revenue increased by 3.9% year-over-year to RMB11.94 billion, driven by higher demand and sales volume in both domestic and overseas markets.

• Sales volume rose 9.3% to 1,428,000 tonnes, with notable growth in radial tire cords for trucks (+5.9%) and passenger cars (+17.9%).

• Profit attributable to owners dropped 40.1% to RMB269 million, and basic EPS fell 47.4% to RMB14.23 cents.

• Gross profit margin declined by 0.8 percentage points to 18.4% due to intensified industry competition and lower production utilization.

• 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.

Financial highlights

• EBITDA decreased by 3.0% year-over-year to RMB1,563 million, with EBITDA margin down to 13.1%.

• Net profit margin dropped from 5.5% to 3.2%.

• Export sales volume increased by 15.7%, and export sales revenue grew by 5.0%.

• Cash balance remained stable at RMB836 million.

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

Outlook and guidance

• Cautiously optimistic industry outlook amid complex international environment, high global inflation, and trade barriers.

• Policy support in China expected to boost automotive and steel cord industries.

• Focus on expanding overseas markets, especially Southeast Asia, India, Europe, and the Americas.

• Emphasis on sustainable development and green product innovation.

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