Jiangsu Yangnong Chemical (600486) H2 2024 earnings summary

Executive summary

• Revenue declined 9.09% year-over-year to ¥10.43 billion due to significant product price drops, with net profit attributable to shareholders down 23.19% to ¥1.20 billion.

• The company maintained industry-leading performance despite a challenging agrochemical market, focusing on operational excellence, cost reduction, and efficiency improvements.

• Major cost-saving initiatives and supply chain optimizations resulted in total savings of ¥635 million, with energy and procurement savings of ¥141 million and ¥253 million, respectively.

• R&D investment reached ¥359 million, representing 3.44% of revenue, with 62 new invention patents granted.

• The company proposed a cash dividend of ¥6.80 per 10 shares, totaling ¥276.55 million, subject to shareholder approval.

Financial highlights

• Operating income: ¥10.43 billion, down 9.09% year-over-year.

• Net profit attributable to shareholders: ¥1.20 billion, down 23.19% year-over-year.

• Gross margin for agrochemicals: 23.44%, down 2.32 percentage points year-over-year.

• Basic and diluted EPS: ¥2.978, down 23% year-over-year.

• Net cash flow from operating activities: ¥2.16 billion, down 9.99% year-over-year.

• Total assets: ¥17.66 billion, up 12.49% year-over-year.

Outlook and guidance

• 2025 is expected to be highly challenging, with continued low product prices, overcapacity, and intensified competition.

• The company will focus on market expansion, cost control, technological innovation, and project execution to drive growth.

• Key risks include climate volatility, exchange rate fluctuations, market dependency, safety/environmental compliance, and geopolitical uncertainties.