Yunnan Energy New Material (002812) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 was ¥2.68 billion, down 23.93% year-over-year; YTD revenue was ¥7.46 billion, down 17.91% year-over-year.

• Net profit attributable to shareholders for Q3 was ¥152 million, a 79.64% decrease year-over-year; YTD net profit was ¥443 million, down 79.41%.

• Basic EPS for Q3 was ¥0.15, down 80.52% year-over-year; YTD basic EPS was ¥0.45, also down 80.52%.

Financial highlights

• Operating cash flow for the first three quarters was ¥2.30 billion, down 24.75% year-over-year.

• Gross margin and other profitability metrics declined sharply, with net margin and ROE both significantly lower.

• Total assets at Q3-end were ¥48.39 billion, up 2.52% from year-end 2023; equity attributable to shareholders was ¥25.65 billion, down 4.75%.

• Significant decrease in monetary funds (down 30.27%) and increase in deferred tax assets (up 60.64%) compared to year-end 2023.

Outlook and guidance

• Company is expanding internationally, with a new lithium battery separator project in Malaysia targeting 1 billion sqm/year capacity and a total investment of ¥2 billion.

• Secured supplier status with Exide Energy Solutions in India, with expected 2025 transaction value up to ¥200 million.