Ningbo Deye Technology Group Co (605117) investor relations material

Executive summary

• Revenue for the first nine months reached RMB 8.85 billion, up 10.36% year-over-year, with Q3 revenue at RMB 3.31 billion.

• Net profit attributable to shareholders for the first nine months was RMB 2.35 billion, a 4.79% increase year-over-year, but Q3 net profit declined 17.84% year-over-year.

• Basic and diluted EPS for the first nine months was RMB 2.60, down 19.3% for Q3 compared to the same period last year.

Financial highlights

• Operating profit for the first nine months was RMB 2.74 billion, up from RMB 2.57 billion year-over-year.

• Gross margin and other profitability metrics were pressured in Q3, with net profit margin declining.

• Cash flow from operating activities for the first nine months was RMB 2.66 billion, nearly flat year-over-year.

• Total assets at quarter-end were RMB 21.46 billion, up 41.97% from the previous year-end, mainly due to increased discounted but not yet matured bank acceptance bills.

• Owner's equity attributable to shareholders was RMB 9.33 billion, down 1.28% from the previous year-end.

Outlook and guidance

• Management did not provide explicit forward-looking guidance in the report.