LB Group (002601) Q4 2024 earnings summary

Executive summary

• Achieved record production and sales in titanium dioxide and titanium sponge, further consolidating global leadership in both segments.

• Operating income rose 2.80% year-over-year to RMB27.51 billion, but net profit attributable to shareholders fell 32.79% to RMB2.17 billion due to lower product prices, new energy segment underperformance, and asset impairments.

• Significant management and ownership transition occurred following the passing of the previous controlling shareholder, with succession completed by his daughter.

Financial highlights

• Operating income: RMB27.51 billion, up 2.80% year-over-year.

• Net profit attributable to shareholders: RMB2.17 billion, down 32.79% year-over-year.

• Net cash flows from operating activities: RMB3.80 billion, up 11.54% year-over-year.

• Basic and diluted EPS: RMB0.91, down from RMB1.38 and RMB1.35, respectively, in the prior year.

• Gross margin for titanium dioxide: 31.35%; for iron products: 40.81%.

• Total assets: RMB66.20 billion, up 3.74% from prior year.

• Cash dividends distributed in 2024 totaled RMB2.14 billion.

Outlook and guidance

• 2025 is the final year of the 14th Five-Year Plan, with focus on intensive growth, global expansion, and green development.

• Plans to further refine the industrial chain, increase high-end product output, and expand international presence, especially in emerging markets.

• No cash dividend or bonus share planned for 2024 year-end; focus on reinvestment and capital discipline.