China XD Electric Co (601179) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 reached ¥4.88 billion, up 4.29% year-over-year; YTD revenue was ¥15.16 billion, up 6.94% year-over-year.

• Net profit attributable to shareholders for Q3 was ¥334 million, a 199.96% increase year-over-year; YTD net profit was ¥787 million, up 45.33%.

• Adjusted net profit (excluding non-recurring items) for Q3 was ¥310 million, up 383.60% year-over-year; YTD adjusted net profit was ¥781 million, up 74.49%.

• Growth driven by higher revenue, reduced costs, increased delivery of high value-added products, and higher investment income from associates and joint ventures.

Financial highlights

• Basic EPS for Q3 was ¥0.0652, up 200.46% year-over-year; YTD basic EPS was ¥0.1535, up 45.36%.

• Operating cash flow for the first nine months was ¥1.40 billion, a significant improvement from a negative ¥1.05 billion in the prior year.

• Gross margin improved due to increased sales of high value-added products and cost reductions.

• Total assets at quarter-end were ¥45.65 billion, up 3.79% from the previous year-end.

• Shareholders’ equity attributable to the parent was ¥21.88 billion, up 1.03% from year-end.

Key financial ratios and metrics

• Weighted average ROE for the period was 3.61%, up 1.15 percentage points year-over-year.

• Net margin and profitability metrics improved significantly due to higher revenue and lower costs.