Weichai Power (2338) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 was RMB 49.46 billion, down 8.82% year-over-year; net profit attributable to shareholders was RMB 2.50 billion, down 4.00% year-over-year.

• For the first nine months, revenue reached RMB 161.95 billion, up 1.0% year-over-year; net profit attributable to shareholders was RMB 8.40 billion, up 29.2% year-over-year.

• Operating profit for the first nine months increased 33.6% year-over-year to RMB 12.55 billion.

Financial highlights

• Basic and diluted EPS for the first nine months were RMB 0.97, up from RMB 0.75 year-over-year.

• Gross margin improved as cost of sales grew slower than revenue; R&D and administrative expenses increased.

• Net cash flows from operating activities for the first nine months were RMB 13.52 billion, down 32.7% year-over-year.

• Total assets as of September 30, 2024, were RMB 343.81 billion, up 2.86% from year-end 2023.

• Equity attributable to shareholders rose 8.91% to RMB 86.41 billion.

Outlook and guidance

• The company implemented new accounting standards in 2024, impacting comparability.