Yongxing Special Materials Technology (002756) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 was ¥4.49 billion, down 32.5% year-over-year, mainly due to a sharp decline in lithium carbonate prices.

• Net profit attributable to shareholders was ¥768 million, a 59.6% decrease year-over-year.

• Cash flow from operating activities dropped 77.5% year-over-year to ¥531 million.

• The company maintained leading positions in lithium carbonate and special steel, with ongoing cost control and efficiency improvements.

Financial highlights

• Operating income: ¥4.49 billion, down 32.5% year-over-year.

• Net profit attributable to shareholders: ¥768 million, down 59.6% year-over-year.

• Basic EPS: ¥1.44, down 59.4% year-over-year.

• Gross margin for lithium carbonate: 38.7%; for special steel: 12.3%.

• Government subsidies and VAT credits contributed ¥209 million to other income.

Outlook and guidance

• The company expects continued long-term growth in new energy vehicles and energy storage, supporting demand for lithium and batteries.

• Ongoing cost reduction, process optimization, and project construction are prioritized to enhance competitiveness.