Dongyue Group (189) H1 2024 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2024 was RMB7,261 million, up 0.87% year-over-year, with gross profit margin rising to 19.83% from 15.73% last year.

• Net profit increased to RMB395 million, a 90% rise from RMB208 million in the prior year period, and profit before tax more than doubled to RMB673 million.

• Strong performance in the refrigerants segment, driven by quota restrictions and higher prices, offset weaker demand in other segments.

• The group accelerated R&D, completing 26 high-end material projects, and continued to exit the real estate business, disposing of most assets.

• Operating profit margin improved to 9.37% from 3.78% year-over-year.

Financial highlights

• Gross profit: RMB1,440 million (2023: RMB1,132 million).

• Net profit: RMB395 million (2023: RMB208 million).

• Earnings per share: RMB0.17 (2023: RMB0.13).

• Operating cash flow: RMB410 million (2023: RMB713 million); bank balances and cash were RMB2,321 million at period end.

• Capital expenditure: RMB444 million (2023: RMB744 million), mainly for new projects and production lines.

Outlook and guidance

• Plans to intensify marketing of 26 high-end projects to drive future growth.

• Focus on expanding the fluorosilicon industry chain and upgrading production technology.

• Continued emphasis on cost control, efficiency, inventory management, and process optimization to enhance competitiveness.

• Cautious outlook for non-refrigerant segments due to challenging market conditions.