Zhejiang Weixing New Building Materials (002372) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached ¥2.34 billion, up 4.73% year-over-year, with net profit attributable to shareholders at ¥340 million, down 31.23% year-over-year.

• Excluding non-recurring items, net profit was ¥339.6 million, nearly flat year-over-year (-0.37%).

• Cash flow from operating activities was ¥291.8 million, down 28.22% year-over-year.

• The company maintained its leading position in the plastic piping industry, with strong brand, R&D, and marketing capabilities.

• International business revenue grew 27.39% year-over-year, driven by Southeast Asia expansion.

Financial highlights

• Operating income: ¥2.34 billion (+4.73% year-over-year); net profit: ¥340 million (-31.23% year-over-year).

• Gross margin for PPR products: 59.11%; PE: 29.73%; PVC: 20.99%.

• Basic and diluted EPS: ¥0.22, down 29.03% year-over-year.

• Total assets at period end: ¥6.18 billion, down 15.27% from year-end 2023.

• Net assets attributable to shareholders: ¥4.63 billion, down 17.17% from year-end 2023.

Outlook and guidance

• The company plans a cash dividend of ¥1.00 per 10 shares, totaling ¥157.19 million.

• Management remains focused on market share growth, risk control, and international expansion, while monitoring macroeconomic and industry risks.