Shenzhen Senior Technology Material (300568) H2 2024 earnings summary

Executive summary

• Revenue grew 17.52% year-over-year to ¥3.54 billion, driven by strong demand in lithium-ion battery separator products and expanded production capacity.

• Net profit attributable to shareholders declined 36.87% year-over-year to ¥364 million, mainly due to margin compression and increased costs.

• Total assets increased 28.98% to ¥23.15 billion, reflecting ongoing investment in capacity and R&D.

• The company maintained a leading position in the global separator market, with China accounting for 91% of global supply.

Financial highlights

• Operating income: ¥3.54 billion, up 17.52% year-over-year.

• Net profit attributable to shareholders: ¥364 million, down 36.87% year-over-year.

• Gross margin for lithium-ion battery separators: 28.79%, down 15.63 percentage points year-over-year.

• Operating cash flow: ¥368 million, down 67.51% year-over-year.

• Basic and diluted EPS: ¥0.2711, down 39.84% year-over-year.

• R&D expenses: ¥248 million, 7% of revenue.

Outlook and guidance

• Focus on expanding overseas market share and deepening relationships with global battery manufacturers.

• Continued investment in new production lines in China, Europe, and Southeast Asia to meet growing demand.

• Strategic emphasis on next-generation separator technologies and semiconductor materials as a second growth curve.

• Ongoing digital transformation and AI-driven manufacturing upgrades to improve efficiency and product quality.