Diwang Industrial (1950.HK) Q4 2024 Earnings Report

Diwang Industrial’s QQ4 2024 results reflect a modest top-line contraction against a backdrop of improving profitability and solid liquidity. Revenue declined 13.92% year-over-year to 137.323 million CNY, driven by demand and market dynamics in its target markets. Despite weaker top-line, the company delivered an improvement in profitability metrics: gross profit margin remained robust at 42.83% (gross profit 58.8185 million CNY) and operating margin reached 2.02%, producing an operating income of 2.7785 million CNY and net income of 4.7465 million CNY for the quarter. Earnings per share (EPS) stood at 0.0066 CNY. The quarter also showcased a positive cash-generation profile from operating activities (25.2965 million CNY), although capital expenditure was substantial (26.635 million CNY), resulting in a small negative free cash flow of 1.3385 million CNY. Balance-sheet metrics remain favorable with a strong liquidity position (current ratio 3.58, quick ratio 3.29) and modest indebtedness (total debt 64.963 million CNY; net debt 10.237 million CNY). The company’s shares trade at a lower multiple (P/E 4.92x; P/B 0.145x), consistent with a smaller-scale specialty chemicals player in the current cycle. Management commentary—while not contained in the provided transcript—likely emphasized cost discipline, ongoing R&D investments, and a measured capex program to support long-term growth in coatings agents and resins across China and select regional markets.