Zhejiang Huayou Cobalt (603799) Q3 2024 earnings summary

Executive summary

• Q3 2024 net profit attributable to shareholders rose 45.42% year-over-year to RMB 1.35 billion, driven by industrial integration and upstream nickel projects reaching production.

• Operating income for Q3 2024 declined 13% year-over-year to RMB 15.44 billion, with year-to-date revenue down 10.97% to RMB 45.49 billion.

• Net cash flow from operating activities for the first nine months surged 54.65% year-over-year to RMB 3.84 billion, reflecting improved sales collection.

Financial highlights

• Q3 2024 basic and diluted EPS were RMB 0.80, up 42.86% year-over-year; year-to-date EPS was RMB 1.80, down 4.26%.

• Total assets at September 30, 2024 reached RMB 132.24 billion, up 5.35% from year-end 2023.

• Owners' equity increased 4.10% to RMB 35.68 billion compared to year-end 2023.

• Gross margin improved as operating costs fell faster than revenue, with total operating costs down 11.5% year-over-year for the first nine months.

Outlook and guidance

• Profit growth attributed to the effect of industrial integration and ramp-up of nickel resource projects; management expects continued benefits from these strategies.