Executive Summary
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.
Key Performance Indicators
Key Insights
Revenue: 137,323,000 CNY; YoY -13.92%, QoQ 0.00% | Gross Profit: 58,818,500 CNY; YoY -3.19%, QoQ 0.00% | Gross Margin: 42.83% | Operating Income: 2,778,500 CNY; Margin 2.02% | EBITDA: 7,598,500 CNY | Net Income: 4,746,500 CNY; Margin 3.46% | EPS: 0.0066 CNY | Cash from Operations: 25,296,500 CNY | Capex: -26,635,000 CNY | Free Cash Flow: -1,338,499 CNY | Current Ratio: 3.58 | Quick Ratio: 3.29 | Debt/Assets: 0.0785; Debt/Equity: 0.101; Net Debt: 10,237,000 CNY | Cash and Equivalents: 54,726,000 ...
Financial Highlights
Revenue: 137,323,000 CNY; YoY -13.92%, QoQ 0.00% | Gross Profit: 58,818,500 CNY; YoY -3.19%, QoQ 0.00% | Gross Margin: 42.83% | Operating Income: 2,778,500 CNY; Margin 2.02% | EBITDA: 7,598,500 CNY | Net Income: 4,746,500 CNY; Margin 3.46% | EPS: 0.0066 CNY | Cash from Operations: 25,296,500 CNY | Capex: -26,635,000 CNY | Free Cash Flow: -1,338,499 CNY | Current Ratio: 3.58 | Quick Ratio: 3.29 | Debt/Assets: 0.0785; Debt/Equity: 0.101; Net Debt: 10,237,000 CNY | Cash and Equivalents: 54,726,000 CNY; Total Cash + Short-Term Investments: 60,698,000 CNY | Total Assets: 827,684,000 CNY | Total Liabilities: 158,940,000 CNY | Equity: 644,094,000 CNY | P/E: 4.92x | P/BV: 0.145x | Enterprise Value / Sales: 13.63x
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
137.32M |
-13.92% |
0.00% |
| Gross Profit |
58.82M |
-3.19% |
0.00% |
| Operating Income |
2.78M |
123.61% |
0.00% |
| Net Income |
4.75M |
200.83% |
0.00% |
| EPS |
0.01 |
191.67% |
0.00% |
Key Financial Ratios
operatingProfitMargin
2.02%
Management Commentary
Note: The earnings transcript data set provided for this analysis is currently empty. No management quotes or thematic highlights were supplied. Consequently, the transcriptHighlights and transcriptQuotes sections are populated with placeholders to reflect the absence of verbatim management commentary in the input. Investors should supplement this section with the company’s QQ4 2024 earnings call transcript or the official earnings release commentary to capture management tone on demand trends, margin initiatives, and capex prioritization.
Forward Guidance
No explicit forward guidance was provided in the data set. Based on QQ4 2024 results, the investment case rests on continued demand stabilization for Diwang’s coating agents and synthetic resins, incremental margin management, and a disciplined capex plan to support long-term growth. Management commentary (where available in supplementary materials) would be expected to address: (1) trajectory of China-focused coatings/resins demand, (2) progress on cost containment and product mix optimization to sustain or expand gross margins, (3) cadence of capital investments in R&D and plant assets, and (4) potential geographic expansion to Mexico, Turkey, and Vietnam. Monitoring points for investors include quarterly revenue trends, gross margin trajectory, working capital efficiency (receivables and inventory management), and the timing and scale of capex relative to insourcing vs. outsourcing strategies.