Zhejiang NHU Company (002001) Q2 2024 earnings summary

Executive summary

• Operating revenue for H1 2024 reached RMB 9.84 billion, up 32.7% year-over-year, driven by higher sales volume and prices in methionine and vitamins.

• Net profit attributable to shareholders was RMB 2.20 billion, a 48.6% increase year-over-year; net profit after deducting non-recurring items rose 56.9%.

• Cash flows from operating activities increased 73.1% year-over-year to RMB 2.14 billion.

• The company maintained its focus on nutrition, aroma chemicals, new polymer materials, and APIs, with global sales in over 100 countries.

Financial highlights

• Gross margin for pharmaceutical chemicals improved by 5.09 percentage points year-over-year to 38.14%.

• Basic and diluted EPS were both RMB 0.71, up from RMB 0.48 in the prior year period.

• Weighted average ROE increased to 8.58% from 6.09% year-over-year.

• Overseas sales grew 40.9% year-over-year, now accounting for 55.3% of total revenue.

• Net cash flows from investing activities improved to -RMB 746 million from -RMB 2.09 billion year-over-year.

Outlook and guidance

• The company will continue to focus on innovation-driven growth, expanding its "chemical+" and "biology+" platforms, and maintaining stable cash dividends.

• Plans to further globalize operations, enhance R&D, and pursue sustainable development through green manufacturing and digital transformation.