Inner Mongolia Yuan Xing Energy Company (000683) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached ¥7.07 billion, up 32.00% year-over-year, with net profit attributable to shareholders at ¥1.21 billion, up 14.90% year-over-year.

• Main products are soda ash and baking soda, with production and sales volumes among the industry leaders; the Alxa Tamusu natural soda project phase I lines are running stably, boosting output and profit.

• The company maintains a leading position in the domestic soda ash and baking soda market, with significant resource reserves and ongoing capacity expansion.

Financial highlights

• Operating income: ¥7.07 billion, up 32.00% year-over-year; net profit attributable to shareholders: ¥1.21 billion, up 14.90% year-over-year.

• Gross margin for soda ash segment: 55.72%; for urea: 26.43%.

• Basic and diluted EPS: ¥0.32, up from ¥0.29 year-over-year.

• Operating cash flow: ¥1.36 billion, up 7.23% year-over-year.

• Total assets at period end: ¥33.05 billion, down 3.05% from year-end 2023; net assets attributable to shareholders: ¥13.79 billion, up 2.25%.

• Non-recurring items had limited impact; adjusted net profit closely matches reported net profit.

Outlook and guidance

• H2 2024 soda ash industry expected to see both supply and demand growth, with new capacity coming online and downstream demand from glass and new energy sectors remaining strong.

• Urea industry faces increased supply but agricultural demand will weaken seasonally; industrial demand expected to rise.