Jiangsu Eastern Shenghong (000301) Q2 2024 earnings summary

Executive summary

• Operating revenue for H1 2024 reached RMB 72.83 billion, up 10.46% year-over-year; net profit attributable to shareholders was RMB 319 million, down 81.59% year-over-year.

• Total assets at June 30, 2024 were RMB 202.43 billion, a 6.42% increase from year-end 2023; net assets attributable to shareholders were RMB 35.06 billion.

• The company maintained its leading position in petrochemicals, new materials, and recycled polyester fiber, with significant capacity expansions and new projects underway.

• No cash dividends, bonus shares, or capital reserve conversions planned for the reporting period.

Financial highlights

• Operating revenue increased 10.46% year-over-year to RMB 72.83 billion; domestic sales rose 14.79%, while overseas sales declined 36.11%.

• Net profit attributable to shareholders dropped 81.59% year-over-year to RMB 319 million; net profit after non-recurring items fell 93.46%.

• Basic and diluted EPS were RMB 0.05, down from RMB 0.25 and RMB 0.26, respectively, in H1 2023.

• Net cash flows from operating activities decreased 74.57% year-over-year to RMB 2.02 billion.

• EBITDA for the period was RMB 60.55 billion, up 17.18% from year-end 2023.

Outlook and guidance

• The company expects continued growth in China's economy and petrochemical sector, with ongoing investments in new energy, new materials, and green technologies.

• Photovoltaic materials, recycled fibers, and lithium battery materials are highlighted as future growth drivers.

• The company will continue to focus on high-value-added products, technological innovation, and green transformation.