Angel Yeast (600298) Q4 2024 earnings summary

Executive summary

• Revenue reached RMB 15.20 billion, up 11.86% year-over-year; net profit attributable to shareholders was RMB 1.32 billion, up 4.07% year-over-year; basic EPS was RMB 1.55, up 4.73% year-over-year.

• Operating cash flow increased 24.38% year-over-year to RMB 1.65 billion.

• International business revenue grew 19.36% year-over-year to RMB 5.71 billion, with strong overseas expansion and new subsidiaries in Brazil and Algeria.

• Gross margin for the core yeast and deep processing segment was 29.54%, with segment revenue up 14.19% year-over-year.

• Board proposes a cash dividend of RMB 5.5 per 10 shares, totaling RMB 477 million, representing a payout ratio of 36.05%.

Financial highlights

• Total assets at year-end were RMB 21.73 billion, up 12.57% from the previous year.

• Net assets attributable to shareholders were RMB 10.83 billion, up 7.28% year-over-year.

• Operating costs increased 12.85% year-over-year, with R&D expenses up 5.03% to RMB 632 million, representing 4.16% of revenue.

• Finance costs rose 302.21% due to higher bank interest expenses.

• Non-recurring profit items contributed RMB 155 million to net profit, mainly from government subsidies.

Outlook and guidance

• 2025 revenue is targeted to grow by over 10% year-over-year, with a focus on high-quality development, product innovation, and international expansion.

• The company will continue to invest in new product development, capacity expansion, and digital transformation.