Shenzhen Capchem Technology (300037) Q4 2024 earnings summary

Executive summary

• Revenue grew 4.85% year-over-year to ¥7.85 billion, driven by growth in all major product lines despite industry headwinds and price pressure.

• Net profit attributable to shareholders declined 6.83% year-over-year to ¥942 million, mainly due to increased competition, price declines, and higher operating costs during capacity ramp-up.

• The company maintained strong R&D investment and international expansion, securing major long-term supply agreements and advancing global production capacity.

Financial highlights

• Revenue: ¥7.85 billion, up 4.85% year-over-year.

• Net profit attributable to shareholders: ¥942 million, down 6.83% year-over-year.

• Gross margin: 26.49%, down 2.45 percentage points year-over-year.

• Operating cash flow: ¥818 million, down 76.26% year-over-year due to reduced bill discounting and longer receivables.

• Basic EPS: ¥1.26, down from ¥1.36 last year.

• R&D expenses: ¥393 million, representing 5.41% of revenue.

Outlook and guidance

• Management expects continued growth in battery chemicals, fluorochemicals, and semiconductor chemicals, supported by global energy transition and new energy vehicle adoption.

• The company will focus on cost control, efficiency, and further internationalization to mitigate market and geopolitical risks.

• 2025 priorities include strengthening core business, deepening global layout, and enhancing innovation and compliance.