Red Avenue New Materials Group (603650) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached RMB 848.60 million, up 2.72% year-over-year; net profit attributable to shareholders was RMB 125.46 million, down 1.13% year-over-year.

• For the first nine months, revenue was RMB 2.42 billion, up 10.45% year-over-year; net profit attributable to shareholders was RMB 438.58 million, up 25.31% year-over-year.

• Cash flow from operating activities for the first nine months was RMB 309.40 million, up 106.91% year-over-year, mainly due to increased sales and government subsidies.

Financial highlights

• Basic and diluted EPS for Q3 was RMB 0.21; for the first nine months, RMB 0.73, up 23.73% year-over-year.

• Gross margin for the first nine months improved, with operating profit at RMB 372.13 million and total profit at RMB 466.62 million.

• Total assets at quarter-end were RMB 7.99 billion, up 8.97% from year-end 2023.

• Owner's equity attributable to shareholders was RMB 3.35 billion, down 1.71% from year-end 2023.

Outlook and guidance

• A cash dividend of RMB 2.5 per 10 shares (pre-tax) was distributed in October 2024, totaling RMB 149.02 million.