Zhejiang Huayou Cobalt (603799) Q2 2024 earnings summary

Executive summary

• Operating income for H1 2024 was RMB 30.05 billion, down 9.88% year-over-year due to lower metal prices.

• Net profit attributable to shareholders was RMB 1.67 billion, a 19.87% decrease year-over-year.

• Net profit in Q2 2024 rose 119.81% sequentially from Q1, showing a recovery trend.

• Shipments of lithium-ion battery cathode precursors grew 11% year-over-year; nickel product shipments rose over 40%.

• The company advanced global integration, expanded overseas projects, and enhanced ESG governance.

Financial highlights

• Operating income: RMB 30.05 billion (down 9.88% year-over-year).

• Net profit attributable to shareholders: RMB 1.67 billion (down 19.87% year-over-year).

• Net cash flow from operating activities: RMB 2.76 billion, up 54% year-over-year.

• Basic EPS: RMB 1.00 (down 24.24% year-over-year).

• Gross margin and EBITDA not explicitly disclosed.

Outlook and guidance

• Management remains confident in the long-term prospects of the new energy lithium-ion battery materials industry.

• The company will focus on resource control, market expansion, and capability enhancement to strengthen its global leadership.

• Plans to continue expanding overseas resource projects and recycling business.