Zhejiang Longsheng Group (600352) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 was ¥6.95 billion, down 3.66% year-over-year; net profit attributable to shareholders rose 13.93% to ¥902 million.

• Core businesses are textile chemicals (dyes, auxiliaries) and intermediates, maintaining global leadership.

• Dye sales volume grew 4.34% and intermediates 21.01% year-over-year, expanding market share.

• Real estate business advanced with new project launches and steady construction progress.

• Proposed interim dividend: ¥2.00 (pre-tax) per 10 shares.

Financial highlights

• Operating income: ¥6.95 billion, down 3.66% year-over-year.

• Net profit attributable to shareholders: ¥902 million, up 13.93% year-over-year.

• Net profit excluding non-recurring items: ¥644 million, down 20.67% year-over-year.

• Operating cash flow: ¥2.16 billion, down 33.83% year-over-year due to lower property pre-sales.

• Basic EPS: ¥0.2844, up 13.31% year-over-year.

Outlook and guidance

• The company expects continued intense competition in the dye industry, with pressure on prices and margins.

• Will focus on leveraging scale, cost, and technology advantages to maintain market leadership.

• Ongoing investment in R&D, environmental protection, and product line expansion.