China CSSC (600150) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 reached RMB 20.15 billion, up 5.35% year-over-year; YTD revenue was RMB 56.17 billion, up 13.12% year-over-year.

• Net profit attributable to shareholders for Q3 was RMB 858 million, down 57.26% year-over-year; YTD net profit was RMB 2.27 billion, down 11.35% year-over-year.

• Excluding a one-time asset swap gain in the prior year, Q3 net profit grew 3,918.42% year-over-year; YTD net profit grew 5,530.70% year-over-year on an adjusted basis.

• The company is advancing a major merger with China Shipbuilding Industry Company, aiming to enhance core business focus and operational quality.

Financial highlights

• Gross margin improved due to higher ship deliveries and better order structure.

• Operating cash flow for the first nine months was RMB 2.33 billion, down 77.80% year-over-year.

• Total assets at Q3-end were RMB 178.44 billion, up 0.34% from year-end 2023.

• Shareholders' equity increased 2.47% to RMB 49.54 billion compared to year-end 2023.

Outlook and guidance

• Improved profitability expected as order structure and joint venture performance continue to strengthen.

• Ongoing merger with China Shipbuilding Industry Company anticipated to further boost business scale and competitiveness.