China Risun Group (1907) H2 2024 earnings summary

Executive summary

• Revenue rose 3.2% year-on-year to RMB47,542.7 million, but net profit attributable to owners plunged 97.7% to RMB20.1 million due to lower product prices and margin compression.

• Gross profit increased 5.0% to RMB3,489.6 million, with gross margin slightly up to 7.3%.

• No final dividend proposed; a special dividend of RMB2.22 cents per share is proposed for the 30th anniversary, totaling RMB96.4 million, subject to approval.

• The group maintained its position as the world's largest independent coke producer and expanded operation management services.

Financial highlights

• Revenue: RMB47,542.7 million (+3.2% YoY); net profit: RMB97.8 million (-90.1% YoY).

• Basic EPS: RMB0.5 cents, down 97.4% YoY.

• Gross profit: RMB3,489.6 million (+5.0% YoY); gross margin: 7.3%.

• Net cash from operating activities: RMB1,436.3 million (down from RMB2,204.4 million in 2023).

• Total borrowings increased 18.3% to RMB30.4 billion.

Outlook and guidance

• Focus on expanding coke and refined chemicals capacity, hydrogen energy, and operation management services.

• Plans to enhance caprolactam (CPL) capacity to become the world's largest producer.

• Active participation in hydrogen industrialization projects in multiple Chinese cities.

• Ongoing cost control, digitalization, and R&D to drive competitiveness.