Shandong Hualu-Hengsheng Chemical (600426) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached RMB 16.98 billion, up 37.35% year-over-year, driven by increased product sales volume.

• Net profit attributable to shareholders was RMB 2.22 billion, up 30.10% year-over-year.

• Operating cash flow increased 22.34% year-over-year to RMB 2.91 billion.

• The company proposed a cash dividend of RMB 3.00 per 10 shares for the interim period.

Financial highlights

• Gross margin for H1 2024 was 21.2%, with operating income of RMB 2.90 billion, up 22.34% year-over-year.

• Basic and diluted EPS were both RMB 1.048, up 30.19% year-over-year.

• ROE (weighted average) was 7.41%, up 1.26 percentage points year-over-year.

• Total assets at period end were RMB 44.87 billion, up 1.86% from year-end 2023.

• Net assets attributable to shareholders reached RMB 29.93 billion, up 3.59% from year-end 2023.

Outlook and guidance

• The company will continue to invest in R&D, promote product iteration, and extend the industrial chain to enhance competitiveness.

• Focus remains on green, low-carbon, and high-quality development, with ongoing upgrades in technology and equipment.