Yongxing Special Materials Technology (002756) Q3 2024 earnings summary

Executive summary

• Revenue for the first nine months was ¥6.23 billion, down 35.79% year-over-year, mainly due to a sharp decline in lithium carbonate prices.

• Net profit attributable to shareholders was ¥970.90 million, a 68.19% decrease year-over-year.

• Cash flow from operating activities dropped 88.87% year-over-year to ¥387.20 million.

Financial highlights

• Q3 revenue was ¥1.74 billion, down 42.97% compared to the same quarter last year.

• Q3 net profit attributable to shareholders was ¥202.41 million, down 82.38% year-over-year.

• Basic and diluted EPS for the first nine months were ¥1.81 and ¥1.82, respectively, both down over 67%.

• Gross margin and net margin declined significantly due to lower lithium carbonate sales prices.

Outlook and guidance

• The company expects continued pressure on profitability if lithium carbonate prices remain low.