Shenzhen Kedali Industry (002850) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 reached ¥3.15 billion, up 10.35% year-over-year; year-to-date revenue was ¥8.59 billion, up 10.60% year-over-year.

• Net profit attributable to shareholders for Q3 was ¥368 million, up 28.70% year-over-year; year-to-date net profit was ¥1.02 billion, up 27.86% year-over-year.

• Operating cash flow for the first nine months surged to ¥1.79 billion, a 4873.24% increase year-over-year.

Financial highlights

• Gross margin and net margin improved, with basic EPS at ¥3.76 for the first nine months, up 14.63% year-over-year.

• Total assets at Q3-end were ¥18.02 billion, up 4.65% from year-end 2023; shareholders’ equity rose 6.53% to ¥11.18 billion.

• Non-recurring gains for the first nine months totaled ¥30.93 million, mainly from government subsidies and fair value changes.

Outlook and guidance

• Increased orders and sales are expected to continue supporting revenue growth.

• Government subsidies and reduced interest expenses are anticipated to positively impact future profitability.