Tingyi Cayman Islands (322) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 increased 0.7% year-over-year to RMB41.20 billion, with gross margin improving by 2.1 percentage points to 32.6%.

• Net profit rose 16.2% to RMB2.24 billion, and profit attributable to shareholders increased 15.1% to RMB1.89 billion.

• EBITDA grew 12.2% year-over-year to RMB4.82 billion.

• Basic earnings per share increased by RMB4.39 cents to RMB33.46 cents.

• Cash at bank and on hand (including long-term time deposits) reached RMB17.93 billion, up RMB3.19 billion from December 2023.

Financial highlights

• Gross profit rose 7.8% year-over-year to RMB13.44 billion.

• Net margin improved to 4.6% from 4.0% year-over-year.

• EBIT margin increased to 7.5% from 6.4% year-over-year.

• Net cash inflow from operating activities was RMB3.51 billion.

• Total assets and liabilities increased to RMB56.02 billion and RMB40.25 billion, respectively.

Outlook and guidance

• Domestic demand is expected to remain the key driver of economic growth in the second half of 2024.

• The group will focus on channel expansion, product innovation, and digital transformation.

• Continued investment in R&D, brand building, and food safety is planned.

• Focus remains on sustainable development and long-term value creation for stakeholders.

• Forward-looking statements caution about risks and uncertainties affecting future performance.