Shanxi Lu'an Environmental Energy Development (601699) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 was RMB 8.99 billion, down 19.19% year-over-year; YTD revenue was RMB 26.65 billion, down 19.28% year-over-year.

• Net profit attributable to shareholders in Q3 was RMB 572 million, down 71.03% year-over-year; YTD net profit was RMB 2.80 billion, down 61.51%.

• Basic EPS for Q3 was RMB 0.20, down 69.70% year-over-year; YTD basic EPS was RMB 0.94, down 61.32%.

• Operating cash flow for Q3 was RMB 879 million, down 85.81% year-over-year; YTD operating cash flow was RMB 3.73 billion, down 59.78%.

Financial highlights

• Gross profit from coal sales was RMB 1.09 billion, with a comprehensive coal sales price of RMB 662.15/ton.

• Q3 government subsidies recognized as non-recurring gains totaled RMB 8.79 million.

• Non-recurring items had a net negative impact of RMB 22.33 million YTD.

• Total assets at Q3-end were RMB 92.73 billion, up 6.88% from year-end 2023.

• Shareholders’ equity was RMB 46.91 billion, down 2.39% from year-end 2023.

Outlook and guidance

• Management highlights a significant decline in coal prices and demand, impacting profitability and cash flow.

• Focus remains on cost control and operational efficiency to mitigate market headwinds.