Anhui Kouzi Distillery (603589) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was RMB 1.20 billion, down 22.04% year-over-year; net profit attributable to shareholders was RMB 362 million, down 27.72% year-over-year.

• For the first nine months, revenue reached RMB 4.36 billion, a 1.89% decrease year-over-year; net profit attributable to shareholders was RMB 1.31 billion, down 2.81%.

• Basic EPS for Q3 was RMB 0.61, down 27.38% year-over-year; for the first nine months, EPS was RMB 2.19, down 2.67%.

Financial highlights

• Operating cash flow for Q3 was RMB 355 million, down 8.32% year-over-year; for the first nine months, RMB 358 million, down 13.96%.

• Gross margin remained stable as cost of sales was nearly flat year-over-year for the nine-month period.

• Total assets at quarter-end were RMB 12.70 billion, up 1.33% from year-end; equity attributable to shareholders was RMB 10.16 billion, up 4.20%.

Key financial ratios and metrics

• Weighted average ROE for Q3 was 3.69%, down 1.57 percentage points year-over-year; for the nine months, 13.12%, down 1.76 points.

• Net margin for the nine months was approximately 30% (net profit of RMB 1.31 billion on revenue of RMB 4.36 billion).