Zhejiang JIULI Hi-tech Metals (002318) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached ¥4.83 billion, up 28.33% year-over-year, with net profit attributable to shareholders at ¥644 million, down 9.56% year-over-year due to non-recurring items and investment impacts.

• Excluding non-recurring items, adjusted net profit rose 33.99% year-over-year; net profit excluding equity investment income surged 81.06% year-over-year.

• Operating cash flow improved significantly to ¥228 million from a negative ¥113 million in H1 2023.

• High-end and high-value-added products contributed ¥1.057 billion in revenue, up 40% year-over-year, accounting for 22% of total revenue.

Financial highlights

• Gross margin for H1 2024 was 24.87%, up from 22.93% in H1 2023.

• Operating profit reached ¥752 million, with a net margin of 13.3%.

• Basic and diluted EPS were both ¥0.67, down from ¥0.73 in H1 2023.

• R&D expenses increased 20.01% year-over-year to ¥186 million.

• Cash and equivalents at period end were ¥2.8 billion, with total assets at ¥12.88 billion.

Outlook and guidance

• Management expects continued growth in high-end product sales and further expansion in overseas markets.

• Ongoing investments in capacity and technology upgrades are expected to enhance competitiveness and profitability.