Jiangsu Shagang (002075) Q2 2024 earnings summary

Executive summary

• Revenue for the first half of 2024 was ¥7.66 billion, down 0.8% year-over-year; net profit attributable to shareholders was ¥104 million, a 12% decrease from the same period last year.

• Gross margin remained stable, but operating profit declined due to lower investment and fair value gains.

• A major acquisition of a 67% stake in Dongbei Special Steel Group Shandong Yinglun Machinery was completed, impacting capital structure and financials.

Financial highlights

• Operating income: ¥7.66 billion (down from ¥7.72 billion year-over-year).

• Net profit: ¥131 million (down from ¥186 million year-over-year).

• Basic and diluted EPS: ¥0.0474 (down from ¥0.0538 year-over-year).

• Operating cash flow: ¥230 million (up from ¥89 million year-over-year).

• Total assets: ¥21.59 billion; total liabilities: ¥11.66 billion as of June 30, 2024.

Outlook and guidance

• Management expects sufficient liquidity and continued operations for at least the next 12 months.

• Dividend proposal: cash dividend of ¥0.25 per 10 shares, totaling ¥54.85 million.