Dongjiang Environmental Company (895) H2 2024 earnings summary

Executive summary

• Operating revenue fell 13.32% year-over-year to RMB3.49 billion, mainly due to a 42.85% drop in rare and precious metals recycling revenue.

• Net loss attributable to equity holders widened to RMB804 million, a 7.16% increase in losses from the prior year.

• Gross profit margin improved to 5.59% from 4.33% year-over-year, driven by cost reduction and efficiency measures.

• Operating loss narrowed by RMB46.27 million year-over-year, reflecting initial success of new management reforms.

Financial highlights

• Total operating revenue: RMB3.49 billion (down 13.32% year-over-year).

• Net loss attributable to owners: RMB804 million (2023: RMB750 million).

• Gross profit margin: 5.59% (2023: 4.33%).

• Net operating cash flow: RMB125 million, up 12,084% year-over-year.

• Gearing ratio: 63.20% (2023: 58.54%).

• No dividends declared for 2024.

Outlook and guidance

• 2025 budget targets at least a 20% reduction in net loss and a 20% increase in operating revenue.

• Focus on industrial upgrades, expanding high-value product lines, and cost control.

• Continued reforms in management, technology, and talent development to drive transformation.