Jiangsu Shagang (002075) Q4 2024 earnings summary

Executive summary

• Revenue for 2024 was ¥14.42 billion, down 7.69% year-over-year, with net profit attributable to shareholders at ¥162.58 million, a 27.75% decrease year-over-year.

• Gross margin for the steel segment was 4.32%, with overall profitability pressured by high raw material costs and weak steel prices.

• The company completed the acquisition of a 67% stake in Shandong Yinglun, expanding its gear business.

• Cash dividend of ¥0.25 per 10 shares was proposed for both mid-year and year-end, totaling ¥54.85 million each.

Financial highlights

• Operating cash flow turned positive to ¥411.93 million from a negative ¥139.20 million last year.

• Total assets at year-end were ¥24.36 billion, up 1.57% year-over-year; net assets attributable to shareholders were ¥6.40 billion, down 5.25%.

• R&D investment increased 6.6% to ¥582.34 million, representing 4.04% of revenue.

• Basic and diluted EPS were both ¥0.07, down 30% year-over-year.

Outlook and guidance

• The steel industry is expected to remain in a phase of “reduced demand, low prices, and low profitability” in 2025, but stabilization is anticipated.

• The company targets 3.6 million tons of steel output and 2.1 million gear units in 2025, focusing on product structure optimization, digital transformation, and green development.