Do-Fluoride New Materials (002407) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 was RMB 4.61 billion, down 12.46% year-over-year, with net profit attributable to shareholders at RMB 70.33 million, a 73.78% decrease year-over-year. Main driver: intensified competition and lower-than-expected demand in the new energy sector, leading to falling product prices and reduced gross margins.

• The company remains a leader in fluorine-based materials, electronic chemicals, and lithium-ion battery materials, with strong R&D and cost advantages, and continues to expand its presence in high-end and international markets.

Financial highlights

• Operating income: RMB 4.61 billion, down 12.46% year-over-year.

• Net profit attributable to shareholders: RMB 70.33 million, down 73.78% year-over-year.

• Net profit excluding non-recurring items: RMB 15.28 million, down 93.27% year-over-year.

• Operating cash flow: -RMB 855.13 million, compared to +RMB 1.08 billion in H1 2023.

• Basic and diluted EPS: RMB 0.0594, down 76.46% year-over-year.

• Gross margin for main products declined, especially in new energy materials.

Outlook and guidance

• The company expects the new energy materials sector to shift from explosive to stable growth, with lithium hexafluorophosphate prices stabilizing.

• Plans to accelerate R&D and capacity expansion in high-end electronic chemicals and new energy battery materials.

• Will continue to optimize cost structure and supply chain management to mitigate raw material price volatility.