Shenzhen Senior Technology Material (300568) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached ¥1.65 billion, up 21.89% year-over-year, driven by increased sales orders.

• Net profit attributable to shareholders was ¥242 million, down 36.11% year-over-year, mainly due to margin pressure and increased costs.

• Gross margin for lithium-ion battery separators declined to 31.31%, a decrease of 14.19 percentage points year-over-year.

• The company remains a leading supplier in the lithium-ion battery separator industry, with strong R&D and global expansion.

• No interim dividend, bonus shares, or capital increase from reserves planned for the half-year.

Financial highlights

• Operating income: ¥1.65 billion, up 21.89% year-over-year.

• Net profit attributable to shareholders: ¥242 million, down 36.11% year-over-year.

• Net profit excluding non-recurring items: ¥177 million, down 41.59% year-over-year.

• Operating cash flow: ¥230.7 million, down 20.73% year-over-year.

• Basic and diluted EPS: ¥0.18, down 40% year-over-year.

Outlook and guidance

• Plans to deepen relationships with existing customers and expand global client base, including new strategic agreements.

• Ongoing global capacity expansion with projects in China, Europe, and Southeast Asia to boost production and market share.

• Focus on product diversification, R&D in new separator technologies, and entry into hydrogen energy and water treatment membranes.

• Continued investment in technology upgrades and smart manufacturing to enhance competitiveness.