Yunnan Energy New Material (002812) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 was ¥4.78 billion, down 14.10% year-over-year; net profit attributable to shareholders was ¥291 million, down 79.28% year-over-year.

• Gross margin for lithium battery separator products fell sharply due to increased costs and price competition.

• Cash flow from operating activities increased 22.21% year-over-year to ¥1.55 billion.

• The company maintained its global leadership in lithium battery separator production capacity and continued to expand overseas, especially in Hungary and the US.

Financial highlights

• Operating income: ¥4.78 billion, down 14.10% year-over-year.

• Net profit attributable to shareholders: ¥291 million, down 79.28% year-over-year.

• Basic EPS: ¥0.30, down 80.65% year-over-year.

• Gross margin for lithium battery separators: 19.48%, down 27.31 percentage points year-over-year.

• Total assets: ¥49.06 billion, up 3.94% from year-end 2023.

• Net assets attributable to shareholders: ¥25.49 billion, down 5.34% from year-end 2023.

Outlook and guidance

• The company expects continued global demand growth for lithium battery separators, especially in overseas markets.

• Ongoing price competition and cost pressures are expected to persist in the near term.

• The company will focus on R&D, product innovation, and expanding high-end customer base to improve profitability.