Global New Material (6616.HK) Q3 2024 Earnings Report

Global New Material International Holdings Limited delivered a strong QQ3 2024 with substantial top-line growth and solid profitability, underpinned by favorable mix and robust demand for Chesir Pearl pearlescent pigments across automotive coatings, plastics, cosmetics, and industrial applications. Revenue reached 437.07 million CNY in Q3 2024, up 45.8% year-on-year and 12.9% quarter-on-quarter, while gross margin expanded to 56.2%, supporting an operating margin of 34.1% and net margin of 15.5%. EBITDA stood at 168.38 million CNY, translating into an EBITDARatio of 38.5%. Net income was 67.56 million CNY, with basic EPS of 0.0545 CNY.

The company remains in an investment phase, with capital expenditures of 329.55 million CNY in the quarter and a free cash flow of -290.92 million CNY, reflecting ongoing capacity expansion and product-line optimization. Operating cash flow amounted to 38.63 million CNY, while net debt remained negative at approximately -977.1 million CNY, supported by a substantial cash balance of about 3.41 billion CNY and total debt of 2.43 billion CNY. This balance-sheet strength provides liquidity to fund expansion while preserving optionality for opportunistic investments.

Relative to peers in the chemical and pigment space, the company exhibits a healthy profitability profile and meaningful scale in a market with ongoing demand for high-end pearlescent pigments. The QQ3 2024 quarter confirms continued earnings resilience even as the company advances its expansion plans. Management commentary (where available) underscores a continued focus on product mix optimization and demand-driven capacity utilization, though explicit forward guidance was not disclosed in the provided transcript data.