Executive Summary
Global New Material International Holdings Limited posted a solid QQ4 2024 performance, highlighted by a meaningful YoY revenue increase and resilient margins alongside a capital expenditure program designed to expand pigment capacity. Revenue reached 437.07 million CNY, up 45.8% year-over-year, with gross profit of 245.76 million CNY and a gross margin of 56.22%. Operating income was 149.09 million CNY (operating margin of 34.11%), and net income stood at 67.56 million CNY (net margin 15.46%), producing an EPS of 0.0545 CNY. EBITDA was 163.92 million CNY. The company generated operating cash flow of 38.63 million CNY but incurred substantial capital expenditure of 329.55 million CNY, resulting in negative free cash flow of 290.92 million CNY for QQ4 2024. On the balance sheet, the group maintained a strong liquidity profile with cash and cash equivalents of 3.411 billion CNY and a net debt position of -977.1 million CNY, underscoring a robust net cash cushion to fund ongoing capacity expansion and potential strategic moves. The working capital cycle remained elongated (CCC around 221 days), reflecting inventory buildup inherent to scale-up in high-value pigment products. Value metrics show a P/E of about 19.0x and a P/B of roughly 1.52x, suggesting the market prices in a reasonable growth and profitability trajectory, albeit with near-term FCF pressure tied to capex cadence.
Key Performance Indicators
Key Insights
Revenue: 437,070,500 CNY; YoY +45.76%; QoQ 0.00%
Gross Profit: 245,757,500 CNY; YoY +59.72%; QoQ 0.00%
Gross Margin: 56.22%
EBITDA: 163,922,500 CNY; EBITDARatio 0.3750
Operating Income: 149,091,500 CNY; Operating Margin 34.11%
Operating Income: 149,091,500 CNY; Margin 34.11%
Net Income: 67,557,000 CNY; Net Margin 15.46%; YoY +39.42%
EPS: 0.0545 CNY; EPS Diluted: 0.0536 CNY; YoY +37.97%
Cash Flow from Operations: 38,632,000 CNY
Capital Expenditures: -329,550,000 CNY
Free Cash Flow: -290,918,000 C...
Financial Highlights
Revenue: 437,070,500 CNY; YoY +45.76%; QoQ 0.00%
Gross Profit: 245,757,500 CNY; YoY +59.72%; QoQ 0.00%
Gross Margin: 56.22%
EBITDA: 163,922,500 CNY; EBITDARatio 0.3750
Operating Income: 149,091,500 CNY; Operating Margin 34.11%
Operating Income: 149,091,500 CNY; Margin 34.11%
Net Income: 67,557,000 CNY; Net Margin 15.46%; YoY +39.42%
EPS: 0.0545 CNY; EPS Diluted: 0.0536 CNY; YoY +37.97%
Cash Flow from Operations: 38,632,000 CNY
Capital Expenditures: -329,550,000 CNY
Free Cash Flow: -290,918,000 CNY
Cash and Cash Equivalents: 3,411,401,000 CNY
Total Debt: 2,434,326,000 CNY
Net Debt: -977,075,000 CNY (net cash)
Current Ratio: 2.79; Quick Ratio: 2.59; Cash Ratio: 2.20
Days Sales Outstanding: 117.35; Days Inventory Outstanding: 145.96; Accounts Payables Days: 41.87; Cash Conversion Cycle: 221.43 days
Debt to Equity: 0.72; Debt to Capitalization: 0.419; Price to Book: 1.524; Price to Sales: 11.77; Price to Earnings: 19.04; Enterprise Value Multiple: 25.43
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
437.07M |
45.76% |
0.00% |
| Gross Profit |
245.76M |
59.72% |
0.00% |
| Operating Income |
149.09M |
76.66% |
0.00% |
| Net Income |
67.56M |
39.42% |
0.00% |
| EPS |
0.05 |
37.97% |
0.00% |
Key Financial Ratios
operatingProfitMargin
34.1%
Management Commentary
Note: Earnings call transcript data were not provided. The following themes synthesize the results and typical management commentary that accompanies QQ4 releases:
- Margin discipline amid revenue growth: Gross margin held at ~56%, with operating margin ~34% and net margin near 15%, indicating favorable product mix and pricing power within Chesir pearlescent pigment lines.
- Capex-driven growth trajectory: A substantial capex outlay of ~329.6m CNY supports capacity expansion to meet rising demand in coatings, plastics and cosmetics; management typically frames capex as a key driver of long-term margin and volume growth, even as near-term free cash flow is negative.
- Liquidity and balance sheet strength: Net cash position of ~977m CNY provides ample liquidity to fund capacity expansion and potential strategic opportunities, while maintaining favorable debt metrics (D/E ~0.72).
- Working capital dynamics: Extended inventory days and a long cash conversion cycle suggest capital-intensive production cycles and a ramp-up phase; normalization may occur as capacity comes online and demand steadies.
Forward Guidance
Management did not issue formal quarterly forward guidance in QQ4 2024. Based on the results and industry dynamics for pearlescent pigments, the following outlook can be inferred: (1) Revenue growth momentum supported by stable demand in coatings, plastics and cosmetics, and by geographic diversification; (2) Margin trajectory to benefit from higher capacity utilization post-capex ramp, assuming stable input costs and favorable product mix; (3) Cash flow profile will likely remain capital-intensive in the near term due to ongoing capacity expansion, implying continued negative free cash flow until utilization improves; (4) Key monitorables include capex progress and commissioning timing, capacity utilization rates, raw material cost fluctuations, currency exposure (CNY) and potential shifts in end-market demand (auto, construction, electronics). Investors should watch: capex execution cadence, working capital normalization, and the company’s ability to translate higher production into sustained EBITDA and cash flow growth.