Jiangsu Shagang (002075) Q3 2024 earnings summary

Executive summary

• Net profit attributable to shareholders for the first nine months was ¥105.38 million, down 43.15% year-over-year.

• Revenue for the first nine months reached ¥11.53 billion, a 6.29% decrease compared to the same period last year.

• The company underwent a change in actual control following the passing of the previous controller, with equity now inherited by his son.

Financial highlights

• Operating income for Q3 was ¥3.15 billion, down 17.38% year-over-year.

• Net profit attributable to shareholders in Q3 was ¥1.34 million, a 98% decrease year-over-year.

• Basic and diluted EPS for Q3 were both ¥0.0006, down 98.05% year-over-year.

• Gross margin and total profit both declined, with profit before tax down 62.55% year-over-year.

• Net cash flow from operating activities for the first nine months was ¥543.17 million, down 28.72% year-over-year.

Outlook and guidance

• Management attributes profit decline to lower product gross margins and reduced cash inflows from sales.