Chongqing Zhifei Biological Products Co (300122) Q3 2024 earnings summary

Executive summary

• Revenue for the first nine months was ¥22.79 billion, down 41.98% year-over-year, with Q3 revenue at ¥4.53 billion.

• Net profit attributable to shareholders for the nine months was ¥2.15 billion, a 67.07% decrease year-over-year; Q3 saw a net loss of ¥83.70 million.

• Cash flow from operating activities for the nine months was negative ¥3.06 billion, a significant decline from the prior year.

• The company established a new branch in Shaanxi to optimize resource allocation and improve operational efficiency.

Financial highlights

• Gross margin for the nine months was 27.2%, with operating costs decreasing in line with lower sales.

• Basic and diluted EPS for the nine months were ¥0.8976, down 67.01% year-over-year.

• Total assets at quarter-end were ¥53.71 billion, up 6.92% from year-end; equity attributable to shareholders was ¥31.44 billion, down 0.20%.

• Short-term borrowings increased 228.18% to ¥8.65 billion, while cash and equivalents fell 48.52% to ¥3.26 billion.

Outlook and guidance

• Management attributes the revenue and profit decline to underperformance in market promotion and lower sales.

• Inventory rose 130.27% due to planned procurement of agency products, indicating expectations for future sales recovery.