Yunnan Yuntianhua (600096) Q3 2024 earnings summary

Executive summary

• Net profit attributable to shareholders for Q3 2024 rose 54.16% year-over-year to ¥1.58 billion, with nine-month net profit up 19.42% to ¥4.42 billion.

• Revenue for Q3 2024 was ¥14.73 billion, down 18.54% year-over-year; nine-month revenue totaled ¥46.72 billion, down 12.34%.

• Profit growth driven by higher phosphate fertilizer prices, lower raw material costs, improved group financial management, and increased profit share from subsidiary buyback.

Financial highlights

• Basic and diluted EPS for Q3 2024 were ¥0.8630, up 54.16% year-over-year; nine-month EPS was ¥2.4118, up 19.43%.

• Gross margin improved as cost of goods sold declined faster than revenue.

• Net cash from operating activities for the nine months was ¥7.51 billion, up 6.83% year-over-year.

• Total assets at quarter-end were ¥50.71 billion, down 3.54% from year-end 2023.

• Shareholders’ equity increased 14.53% to ¥21.47 billion since year-end 2023.

Outlook and guidance

• Management expects continued benefit from strong phosphate fertilizer pricing and cost controls.