LB Group (002601) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached ¥13.79 billion, up 4.10% year-over-year; net profit attributable to shareholders was ¥1.72 billion, up 36.40% year-over-year.

• Gross margin improved to 33.51% for titanium dioxide, with overall profitability rising despite cost pressures.

• Titanium dioxide and sponge titanium production and sales hit record highs, with international sales accounting for 58.61% of titanium dioxide sales.

• The company maintained a strong cash position, with net cash from operating activities up 67.2% year-over-year.

• The company completed a major succession in control, with Ms. Xu Ran becoming the new controlling shareholder and actual controller after the passing of Mr. Xu Gang.

Financial highlights

• Operating income: ¥13.79 billion, up 4.10% year-over-year.

• Net profit attributable to shareholders: ¥1.72 billion, up 36.40% year-over-year.

• Basic and diluted EPS: ¥0.72, up 35.85% and 38.46% year-over-year, respectively.

• Net cash from operating activities: ¥1.37 billion, up 67.2% year-over-year.

• Total assets at period end: ¥67.70 billion, up 6.08% from year-end 2023.

• Gross margin for titanium dioxide: 33.51%, up 7.67 percentage points year-over-year.

Outlook and guidance

• The company expects continued growth in titanium dioxide and sponge titanium demand, driven by global economic recovery and infrastructure investment.

• Plans to further expand production capacity and enhance R&D in new energy materials and titanium-related products.

• Will continue to optimize product structure, reduce costs, and increase market share through innovation and internationalization.