Hoshine Silicon Industry (603260) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached ¥13.27 billion, up 11.18% year-over-year, while net profit attributable to shareholders dropped 45.12% to ¥978 million due to lower product prices and inventory write-downs.

• Gross margin and EPS both declined significantly, reflecting industry-wide price pressure in silicon-based materials.

• The company maintained high utilization rates for industrial silicon and organosilicon, and achieved initial sales of polysilicon products.

• Major investments in integrated silicon and photovoltaic projects continued, with several new production lines reaching mass production.

• No interim dividend or capital increase from reserves was proposed for the period.

Financial highlights

• Operating income: ¥13.27 billion, up 11.18% year-over-year.

• Net profit attributable to shareholders: ¥978 million, down 45.12% year-over-year.

• Basic and diluted EPS: ¥0.83, down 45.75% year-over-year.

• Gross margin declined due to falling prices in industrial silicon, organosilicon, and polysilicon.

• Net cash flow from operating activities: ¥169 million, a significant improvement from a net outflow in the prior year.

Outlook and guidance

• The company expects the silicon materials industry to remain volatile in H2 2024, with potential for price stabilization as supply-demand balance improves.

• Ongoing expansion in photovoltaic and new energy materials is expected to support long-term growth.

• The company will continue to focus on cost control, technological innovation, and green development.