Henan Shuanghui Investment & Development (000895) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 was ¥27.59 billion, down 9.31% year-over-year; net profit attributable to shareholders was ¥2.30 billion, down 19.05% year-over-year.

• Declines were mainly due to lower sales of packaged meat and fresh pork, and weak poultry prices.

• Gross margin for packaged meat was 35.49%, while for slaughtering it was 5.17%.

• Cash flow from operations surged 916.92% year-over-year to ¥3.58 billion, mainly due to inventory reduction.

• Proposed cash dividend of ¥6.60 per 10 shares, totaling ¥2.29 billion.

Financial highlights

• Operating income: ¥27.59 billion, down 9.31% year-over-year.

• Net profit attributable to shareholders: ¥2.30 billion, down 19.05% year-over-year.

• Operating cash flow: ¥3.58 billion, up 916.92% year-over-year.

• Basic and diluted EPS: ¥0.6628, down 19.04% year-over-year.

• Total assets at period end: ¥36.22 billion, down 1.24% from year-end 2023.

Outlook and guidance

• Company expects continued market competition, raw material price volatility, and cost pressures in H2 2024.

• Plans to focus on product innovation, channel expansion, cost control, and digital transformation.

• Will strengthen risk management, food safety, and ESG practices.