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Total revenues decreased by 20.5% year over year to RMB 329.7million (US$45.4 million)[1]. Income from operations was RMB84.4 million (US$11.6 million)[1] compared to RMB98.6 million for the second quarter of 2023. Net income was RMB62.3 million (US$8.6 million)[1] compared to RMB101.9 million for the second quarter of 2023. Adjusted EBITDA (non-GAAP)[2] decreased 34.5% year over year to RMB83.1 million (US$11.4 million)[1]. Core net income (non-GAAP)[3] increased 2.4% year over year to RMB70.2million (US$9.7 million)[1] SHANGHAI, Aug. 15, 2024 /PRNewswire/ -- GreenTree Hospitality Group Ltd. (NYSE: GHG) ("GreenTree", the "Company", "we", "us" and "our"), a leading hospitality and restaurant management group in China, today announced its unaudited financial results for the second quarter of 2024. [1].The conversion of Renminbi ("RMB") into United States dollars ("US$") is based on the exchange rate of US$1.00=RMB 7.2672 on March 31, 2024 as set forth in H.10 statistical release of the U.S. Federal Reserve Board and available at https://www.federalreserve.gov/releases/h10/20220103/. [2].Adjusted EBITDA (non-GAAP) is calculated as net income plus other operating expenses, income tax expense, share of loss in equity investees, net of tax, interest expense, depreciation and amortization, losses from investment in equity securities and other general expenses, but excludes other operating income, interest income and other, net, gains from investment in equity securities, share of gains in equity investees (net of tax), and other income, net. The calculation of Adjusted EBITDA (non-GAAP) included in this report has been aligned according to the above mentioned definition. [3].Core net income is calculated as net income plus share-based compensation, losses from investments in equity securities (net of 25% tax), other expense(net of 25% tax), one-time fees and expense, and other general expenses but excludes government subsidies (net of 25% tax), gains from investment in equity securities (net of 25% tax), and other income (net of 25% tax). Second Quarter of 2024 Operational Highlights Hotels A total of 4,272 hotels with 312,734 hotel rooms were in operation as of June 30, 2024. The Company opened 44 hotels and had a pipeline of 1,022 hotels contracted for or under development as of June 30, 2024. The average daily room rate was RMB173, a decrease of 4.3% from RMB181 in the second quarter of 2023. The occupancy rate was 72.5%, down from 77.8% in the second quarter of 2023. Revenue per available room, or RevPAR, was RMB125, a 10.8% year-over-year decrease. Restaurants A total of 183 restaurants were in operation as of June 30, 2024. The AC (average check) was RMB53, a 6.0% year-over-year decrease. The ADT (average daily tickets) was 90, down from 109 in the second quarter of 2023. The ADS (average daily sales per store) was RMB4,737, a decrease of 22.1% from RMB6,082 in the second quarter of 2023. "In the second quarter, we faced challenges as China's economy continued to recover. We believe both consumers and businesses exercised caution in discretionary spending, which had a negative impact on our overall performance. However, we continued to upgrade a number of hotels in our portfolio in order to better respond to increasing competition. While we believe this will help our performance in the future, second quarter hotel revenues decreased 14.8% year-over-year. We continued to execute on our strategy to return our restaurant business to profitability by moving away from leased-and-operated restaurants in supermarkets and regional shopping centers towards franchised street stores. As a result, the net income turned positive this quarter after breaking even last quarter compared to losses in both corresponding quarters a year ago. Our focus is now fully on growing the number of franchised street stores and stores with stable consumer traffic," said Mr. Alex S. Xu, Chairman and Chief Executive Office of GreenTree. Second Quarter Of 2024 Financial Results Quarter Ended June 30, 2023 June 30, 2023 June 30, 2023 June 30, 2023 RMB RMB RMB RMB Hotel Restaurant Elimination Total Revenues Leased-and-operated revenues 131,490,687 78,963,181 (565,963) 209,887,905 Franchised-and-managed revenues 177,936,543 2,201,340 - 180,137,883 Wholesales and others 1,188,730 23,775,051 - 24,963,781 Total revenues 310,615,960 104,939,572 (565,963) 414,989,569 Quarter Ended June 30, 2024 June 30, 2024 June 30, 2024 June 30, 2024 June 30, 2024 RMB RMB RMB RMB US$ Hotel Restaurant Elimination Total Total Revenues Leased-and-operated revenues 105,851,820 43,306,857 - 149,158,677 20,524,917 Franchised-and-managed revenues 157,810,770 2,234,412 - 160,045,182 22,022,950 Wholesales and others 940,479 19,752,299 (184,981) 20,507,797 2,821,967 Total revenues 264,603,069 65,293,568 (184,981) 329,711,656 45,369,834 Six Month Ended June 30, 2023 June 30, 2023 June 30, 2023 June 30, 2023 RMB RMB RMB RMB Hotel Restaurant Elimination Total Revenues Leased-and-operated revenues 213,563,927 168,340,074 (1,125,179) 380,778,822 Franchised-and-managed revenues 347,417,000 3,165,259 - 350,582,259 Wholesales and others 2,225,579 60,623,330 - 62,848,909 Total revenues 563,206,506 232,128,663 (1,125,179) 794,209,990 Six Month Ended June 30, 2024 June 30, 2024 June 30, 2024 June 30, 2024 June 30, 2024 RMB RMB RMB RMB US$ Hotel Restaurant Elimination Total Total Revenues Leased-and-operated revenues 228,393,613 89,674,836 - 318,068,449 43,767,675 Franchised-and-managed revenues 308,970,282 3,769,753 - 312,740,035 43,034,461 Wholesales and others 2,085,206 49,505,598 (460,202) 51,130,602 7,035,805 Total revenues 539,449,101 142,950,187 (460,202) 681,939,086 93,837,941 Total revenues were RMB329.7 million (US$45.4 million)[1]，a 20.5% year-over-year decrease. Hotel revenues of 2024 were RMB264.6 million (US$36.4 million)[1], a 14.8% year-over-year decrease. There were two major reasons: first, a 10.8% year-over-year decrease in Revpar ; second, the closure of 5 L&O hotels in the second quarter due to lease expiration and strategic decisions; and partially setoff by new openings. Restaurant revenues were of 2024 RMB65.3 million (US$9.0 million)[1], a 37.8% year-over-year decrease, mainly due to lower ADS and the decrease in the number of L&O stores due to the closure of unprofitable L&O stores. Total revenues for the first half of 2024 were RMB681.9 million (US$93.8 million)[1], a 14.1% year-over-year decrease. Total revenues from leased-and-operated, or L&O, hotels and restaurants were RMB149.2 million (US$20.5 million)[1], a 28.9% year-over-year decrease. Total revenues from L&O hotels were RMB105.9 million (US$14.6 million)[1], a 19.5% year-over-year decrease. The decrease was primarily attributable to a 7.3% year-over-year decrease in the second quarter RevPAR of L&O hotels, 5 L&O hotels closed and reduction of sublease revenues mainly due to the disposal of a property. Total revenues from L&O restaurants were RMB43.3 million (US$6.0 million)[1], a 45.2% year-over-year decrease, mainly due to the closure of L&O restaurants since the third quarter of 2023 and the year-over-year decrease in ADS. Total revenues from L&O hotels and restaurants for the first half of 2024 were RMB318.1 million (US$43.8 million)[1], a 16.5% year-over-year decrease. Total revenues from franchised-and-managed, or F&M, hotels and restaurants were RMB160.0 million (US$22.0 million)[1], a 11.2% year-over-year decrease. Total revenues from F&M hotels were RMB157.8 million (US$21.7 million)[1], a 11.3% year-over-year decrease, primary due to a 10.9% decrease in F&M hotels' Revpar and remodeling. Total revenues from F&M restaurants were RMB2.2 million (US$0.3 million)[1], a 1.5% year-over-year increase, as we opened more F&M stores. Total revenues from F&M hotels and restaurants for the first half of 2024 were RMB312.7 million (US$43.0 million)[1], a 10.8% year-over-year decrease. Total revenues from wholesale and others were RMB17.8% year-over-year decrease, mainly due to the decline in the wholesale segment of the restaurant business. Total revenues from wholesale and others for the first half of 2024 were RMB51.1 million (US$7.0 million)[1], a 18.6% year-over-year decrease. Total operating costs and expenses Quarter Ended June 30, 2023 June 30, 2023 June 30, 2023 June 30, 2023 RMB RMB RMB RMB Hotel Restaurant Elimination Total Operating costs and expenses Operating costs 150,127,380 95,088,176 (308,417) 244,907,139 Selling and marketing expenses 13,762,606 4,446,065 - 18,208,671 General and administrative expenses 44,443,478 9,675,734 - 54,119,212 Other operating expenses 692,344 5,649,391 - 6,341,735 Other general expenses 4,309,239 - - 4,309,239 Total operating costs and expenses 213,335,047 114,859,366 (308,417) 327,885,996 Quarter Ended June 30, 2024 June 30, 2024 June 30, 2024 June 30, 2024 June 30, 2024 RMB RMB RMB RMB US$ Hotel Restaurant Elimination Total Total Operating costs and expenses Operating costs 143,382,640 55,127,026 (184,981) 198,324,685 27,290,385 Selling and marketing expenses 13,222,891 2,636,823 - 15,859,714 2,182,369 General and administrative expenses 54,927,567 6,606,681 - 61,534,248 8,467,394 Other operating expenses 271,943 (60,032) - 211,911 29,160 Other general expenses 5,911,956 - - 5,911,956 813,512 Total operating costs and expenses 217,716,997 64,310,498 (184,981) 281,842,514 38,782,820 Six Month Ended June 30, 2023 June 30, 2023 June 30, 2023 June 30, 2023 RMB RMB RMB RMB Hotel Restaurant Elimination Total Operating costs and expenses Operating costs 284,364,378 204,308,159 (610,088) 488,062,449 Selling and marketing expenses 24,838,605 9,385,645 - 34,224,250 General and administrative expenses 90,535,547 21,338,810 - 111,874,357 Other operating expenses 843,564 6,990,654 - 7,834,218 Other general expenses 15,973,584 - - 15,973,584 Total operating costs and expenses 416,555,678 242,023,268 (610,088) 657,968,858 Six Month Ended June 30, 2024 June 30, 2024 June 30, 2024 June 30, 2024 June 30, 2024 RMB RMB RMB RMB US$ Hotel Restaurant Elimination Total Total Operating costs and expenses Operating costs 289,609,282 117,276,623 (440,869) 406,445,036 55,928,698 Selling and marketing expenses 28,677,514 5,591,136 (19,333) 34,249,317 4,712,863 General and administrative expenses 93,397,198 15,778,679 - 109,175,877 15,023,101 Other operating expenses 938,244 1,481,949 - 2,420,193 333,030 Other general expenses 11,756,531 - - 11,756,531 1,617,753 Total operating costs and expenses 424,378,769 140,128,387 (460,202) 564,046,954 77,615,445 Operating costs were RMB 198.3 million (US$27.3 million)[1], a 19.0% year-over-year decrease. Operating costs of the hotel business were RMB143.4 million (US$19.7 million)[1], a 4.5% year-over-year decrease. The decrease was mainly due to the lower personnel costs, lower hotel related material consumption, and lower utilities given lower occupancy rate and the closure of L&O hotels, offset by increased rental costs and depreciation and amortization due to newly opened L&O hotels since the third quarter of 2023. Operating costs of the restaurant business were RMB55.1million (US$7.6 million)[1], a 42.0% year-over-year decrease, due to closure of L&O stores. For the first half of 2024, operating costs were RMB406.4 million (US$55.9 million)[1], representing a 16.7% decrease. Selling and marketing expenses were RMB15.9 million (US$2.2 million)[1], a 12.9% year-over-year decrease. Selling and marketing expenses of the hotel business were RMB13.2 million (US$1.8 million)[1], a 3.9% year-over-year decrease. The decrease was mainly due to lower advertising expenses. Selling and marketing expenses of the restaurant business were RMB2.6 million (US$0.4 million)[1], a 40.7% year-over-year decrease, mainly attributable to lower sales staff related expenses. For the first half of 2024, selling and marketing expenses were RMB34.2 million (US$4.7 million)[1], a 0.1% increase. General and administrative, or G&A expenses were RMB61.5 million (US$8.5 million)[1], a 13.7% year-over-year increase. G&A expenses of the hotel business were RMB54.9 million (US$7.6 million)[1], a 23.6% year-over-year increase. The increase was mainly due to an increase in bad debt provisions for long-aged account receivables. G&A expenses of the restaurant business were RMB6.6 million (US$0.9 million)[1], a 31.7% year-over-year decrease, mainly due to lower staff related expenses. General and administrative expenses for the first half of 2024 were RMB109.2 million (US$15.0 million)[1], a 2.4% year-over-year decrease. Other general expenses were RMB5.9 million (US$0.8 million)[1], a 37.2% year-over-year increase. These expenses recorded provisions for loan receivables related to franchisee loans. This provision was made in consideration of the potential increase in bad debt rates for franchisees who were already overdue. Other general expenses for the first half of 2024 were RMB11.8 million (US$1.6 million)[1], a 26.4% year-over-year decrease. Gross profit was RMB131.4 million (US$18.1 million)[1], a year-over-year decrease of 22.8%. Gross margin was 39.8%, compared to 41.0% a year ago. The gross profit of the hotel business was RMB121.2 million (US$16.7 million)[1], a 24.5% year-over-year decrease. The gross profit of the restaurant business was RMB10.2 million (US$1.4 million)[1], a 3.2% year-over-year increase. Income from operations was RMB84.4 million (US$11.6 million)[1] , compared to income from operations of RMB98.6 million in the second quarter of 2023, with a margin of 25.6%. Income from operations of the hotel business was RMB81.6 million (US$11.2 million)[1], compared to an income from operations of RMB108.5 million in the second quarter of 2023, with a margin of 30.8%. Income from operations of the restaurant business was RMB2.9 million (US$0.4 million)[1], compared to income from operations of RMB-9.6 million in the second quarter of 2023, with a margin of 4.4%. Income from operations for the first half of 2024 was RMB156.7 million (US$21.6 million)[1] compared to income from operations of RMB150.9 million in 2023, with a margin of 23.0%. Net income was RMB62.3million (US$8.6 million)[1], compared to a net income of RMB101.9 million in the second quarter of 2023, and net margin was 18.9%. Net income of the hotel business was RMB63.1 million (US$8.7 million)[1], compared to a net income of RMB114.0 million in the second quarter of 2023, and net margin was 23.9%. Net income of the restaurant business of 2024 was RMB3.7 million (US$0.5 million)[1], compared to a net lose of RMB11.9 million in the second quarter of 2023,and net margin was 5.6%. Net income for the first half of 2024 was RMB 119.6million (US$16.5million)[1], compared to a net loss of RMB 134.5 million in 2023, and net margin was 17.5%. Adjusted EBITDA (non-GAAP)[2] in the second quarter of 2024 was RMB 83.1 million (US$11.4 million)[1], a year-over-year decrease of 34.5%. Adjusted EBITDA margin, defined as adjusted EBITDA (non-GAAP)[2] as a percentage of total revenues, was 25.2%, compared to 30.6% a year ago. Adjusted EBITDA (non-GAAP)[2] for the first half of 2024 was RMB 192.5 million (US$26.5 million)[1], a year-over-year decrease of 12.6%. Core net income (non-GAAP)[3] in the second quarter of 2024 was RMB 70.2 million (US$9.7 million)[1], a year-over-year increase of 2.4%. The core net margin, defined as core net income (non-GAAP)[3] as a percentage of total revenues, was 21.3%, compared to 16.5% one year ago. Core net income (non-GAAP)[3] for the first half of 2024 was RMB 130.9 million (US$18.0 million)[1], a year-over-year increase of 10.4%. Earnings per American Depositary Share, or ADS, (basic and diluted) were RMB0.61 (US$0.36 )[1], a decrease from RMB1.01 one year ago. Earnings per American Depositary Share, or ADS, (basic and diluted) for the first half of 2024 were RMB1.19 (US$0.16 )[1], a decrease from RMB1.37 one year ago. Core net income per ADS (basic and diluted) (non-GAAP) was RMB0.69 (US$0.10 )[1], an increase from RMB0.67 a year ago. Core net income per ADS (basic and diluted) (non-GAAP) was RMB1.29 (US$0.18)[1] for the first half of 2024, an increase from RMB1.16 a year ago. Cash flow Operating cash inflow was RMB69.2 million (US$9.5 million)[1] as a result of income from operations. Investing cash inflow for the second quarter of 2024 was RMB157.6 million (US$21.7 million)[1], which was primarily attributable to the gain from the disposal of a property and also benefit from repayment of loans from franchisees. Financing cash outflow was RMB1.0 million (US$0.1 million)[1],mainly due to the repayment of bank loans. Cash and cash equivalents, restricted cash, short-term investments, investments in equity securities and time deposits. As of June 30, 2024, the Company had total cash and cash equivalents, restricted cash, short term investments, investments in equity securities and time deposits of RMB1,737.2million (US$239.0 million)[1],compared to RMB1,517.3 million as of March 31, 2024. The increase was mainly attributable to continued operating cash inflow, disposal of property, and repayment of loans from franchisees. Guidance Considering our performance during the first half of the year and the impact of closing certain L&O hotels due to lease expirations and strategic decisions, we have revised our revenue guidance for the hotel business. We now anticipate its performance in 2024 to remain flat compared to 2023. The guidance set forth above reflects the Company's current and preliminary views based on its recovery and may not be indicative of the final financial results for any future periods or the full year. Dividend distribution The board of directors has approved the payment of a cash dividend of US$0.10 per ordinary share, or US$0.10 per American Depositary Sahre("ADS") payable to holders of the Company's ordinary shares shown on the Company's record at the close of trading on September 30,2024(the "Record Date"). Conference Call GreenTree's management will hold an earnings conference call at 8:00 AM U.S. Eastern Time on August 15, 2024, (8:00 PM Beijing/Hong Kong Time on August 15, 2024). Dial-in numbers for the live conference call are as follows: International 1-412-902-4272 Mainland China 4001-201-203 US 1-888-346-8982 Hong Kong 800-905-945 or 852-3018-4992 Singapore 800-120-6157 Participants should ask to join the GreenTree call, please dial in approximately 10 minutes before the scheduled time of the call. A telephone replay of the conference call will be available after the conclusion of the live conference call until August 22, 2024. Dial-in numbers for the replay are as follows: International Dial-in 1-412-317-0088 U.S. Toll Free 1-877-344-7529 Canada Toll Free 855-669-9658 Passcode: 2914023 Additionally, a live and archived webcast of this conference call will be available at http://ir.998.com. Use of Non-GAAP Financial Measures We believe that Adjusted EBITDA and core net income, as we present them, are useful financial metrics to assess our operating and financial performance before the impact of investing and financing transactions, income taxes and certain non-core and non-recurring items in our financial statements. The presentation of Adjusted EBITDA and core net income should not be construed as an indication that our future results will be unaffected by other charges and gains we consider to be outside the ordinary course of our business. The use of Adjusted EBITDA and core net income has certain limitations because it does not reflect all items of income and expenses that affect our operations. Items excluded from Adjusted EBITDA and core net income are significant components in understanding and assessing our operating and financial performance. Depreciation and amortization expense for various long-term assets, income tax and share-based compensation have been and will be incurred and are not reflected in the presentation of Adjusted EBITDA. Each of these items should also be considered in the overall evaluation of our results. Additionally, Adjusted EBITDA and core net income do not consider capital expenditures and other investing activities and should not be considered as a measure of our liquidity. We compensate for these limitations by providing the relevant disclosure of our depreciation and amortization, interest expense/income, gains/losses from investments in equity securities, income tax expenses, share-based compensation, share of loss in equity investees, government subsidies and other relevant items both in our reconciliations to the corresponding U.S. GAAP financial measures and in our consolidated financial statements, all of which should be considered when evaluating our performance. The terms Adjusted EBITDA and core net income are not defined under U.S. GAAP, and Adjusted EBITDA and core net income are not measures of net income, operating income, operating performance or liquidity presented in accordance with U.S. GAAP. When assessing our operating and financial performance, you should not consider this data in isolation or as a substitute for our net income, operating income or any other operating performance measure that is calculated in accordance with U.S. GAAP. In addition, our Adjusted EBITDA and core net income may not be comparable to Adjusted EBITDA and core net income or similarly titled measures utilized by other companies since such other companies may not calculate Adjusted EBITDA and core net income in the same manner as we do. Reconciliations of the Company's non-GAAP financial measures, including Adjusted EBITDA and core net income, to the consolidated statement of operations information are included at the end of this press release. About GreenTree Hospitality Group Ltd. GreenTree Hospitality Group Ltd. ("GreenTree" or the "Company") (NYSE: GHG) is a leading hospitality and restaurant management group in China. As of June 30, 2024, GreenTree had a total number of 4,272 hotels and 183 restaurants. In 2023, HOTELS magazine ranked GreenTree 11th among the 225 largest global hotel groups in terms of number of hotels in its annual HOTELS' 225. GreenTree was the fourth largest hospitality company in China in 2023 according to the China Hospitality Association. In 2023, GreenTree completed its acquisition of Da Niang Dumplings and Bellagio, two leading restaurant chain businesses in China. GreenTree has a broad portfolio of diverse brands spanning from the economy to mid-scale, up-scale and luxury segments of the hospitality industry mainly in China. Through its strong membership base, expansive booking network, superior system management with moderate charges, and fully supported by its operating departments including Decoration, Engineering, Purchasing, Operation, IT and Finance, GreenTree aims to keep closer relationships with all of its clients and partners by providing a diverse brand portfolio that features comfort, style and value. For more information on GreenTree, please visit http://ir.998.com Safe Harbor Statements This press release contains forward-looking statements made under the "safe harbor" provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and the U.S. Private Securities Litigation Reform Act of 1995. In some cases, these forward-looking statements can be identified by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to," "confident," "future," or other similar expressions. GreenTree may also make written or oral forward-looking statements in its reports filed with or furnished to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Any statements that are not historical facts, including statements about or based on GreenTree's current beliefs, expectations, assumptions, estimates and projections about us and our industry, are forward-looking statements that involve known and unknown factors, risks and uncertainties that may cause our actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. Such factors and risks include, but not limited to the following: GreenTree's goals and growth strategies; its future business development, financial condition and results of operations; trends in the hospitality industry in China and globally; competition in our industry; fluctuations in general economic and business conditions in China and other regions where we operate; the regulatory environment in which we and our franchisees operate; and assumptions underlying or related to any of the foregoing. You should not place undue reliance on these forward-looking statements. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. All information provided, including the forward-looking statements made, in this press release are current as of the date of the press release. Except as required by law, GreenTree undertakes no obligation to update any such information or forward-looking statements to reflect events or circumstances after the date on which the information is provided or statements are made, or to reflect the occurrence of unanticipated events. Financial Tables and Operational Data Follow GreenTree Hospitality Group Ltd. Unaudited Condensed Consolidated Balance Sheets December 31 June 30 June 30 2,023 2,024 2,024 RMB RMB US$ ASSETS Current assets: Cash and cash equivalents 765,547,547 1,374,876,965 189,189,367 Restricted cash 6,576,906 7,450,696 1,025,250 Short-term investments 417,711,617 33,612 4,625 Investments in equity securities 26,076,169 20,161,988 2,774,382 Accounts receivable, net of allowance 123,887,879 121,134,755 16,668,697 Amounts due from related parties 19,928,781 20,078,953 2,762,956 Prepaid rent - - - Inventories 20,462,490 6,309,470 868,212 Other current assets 117,047,122 121,704,746 16,747,130 Loans receivable, net 129,521,094 96,796,622 13,319,658 Deferred tax assets - - - Total current assets 1,626,759,605 1,768,547,807 243,360,277 Non-current assets: Amounts due from a related party 110,000,000 110,000,000 15,136,504 Restricted cash 19,476,259 19,315,343 2,657,880 Long-term time deposits 63,340,000 285,700,000 39,313,628 Loans receivable, net 70,690,305 36,685,137 5,048,043 Property and equipment, net 814,949,026 669,043,887 92,063,503 Intangible assets, net 117,720,693 115,281,993 15,863,330 Goodwill 177,082,468 177,082,468 24,367,358 Long-term investments 184,758,800 175,521,257 24,152,528 Operating lease right-of-use assets 1,535,330,762 1,444,254,641 198,736,052 Other assets 104,725,600 103,294,642 14,213,815 Deferred tax assets 241,965,360 218,658,563 30,088,419 TOTAL ASSETS 5,066,798,878 5,123,385,738 705,001,337 LIABILITIES AND EQUITY Current liabilities: Long-term bank loans, current portion 200,000 400,000 55,042 Short-term bank loans 116,800,000 - - Accounts payable 73,126,677 53,525,451 7,365,347 Advance from customers 22,393,097 21,975,810 3,023,972 Amounts due to related parties 16,310,293 14,905,639 2,051,084 Salary and welfare payable 86,332,096 84,908,037 11,683,735 Deferred rent - - - Deferred revenue 186,281,838 178,834,473 24,608,442 Accrued expenses and other current liabilities 459,832,717 466,056,353 64,131,488 Income tax payable 112,782,712 104,521,389 14,382,622 Dividends payable - - - Operating lease liabilities, current 267,536,846 263,079,422 36,200,933 Deferred tax liabilities - - - Total current liabilities 1,341,596,276 1,188,206,574 163,502,665 Long-term bank loans 56,800,000 256,400,000 35,281,814 Deferred rent - - - Deferred revenue 207,905,769 183,650,198 25,271,108 Other long-term liabilities 111,711,748 111,391,913 15,328,037 Operating lease liabilities, non-current 1,391,909,309 1,332,750,964 183,392,636 Deferred tax liabilities 94,716,495 85,375,998 11,748,128 Unrecognized tax benefits 382,125,786 375,929,696 51,729,648 TOTAL LIABILITIES 3,586,765,383 3,533,705,343 486,254,036 Shareholders' equity: Class A ordinary shares 222,587,070 222,587,070 30,629,000 Class B ordinary shares 115,534,210 115,534,210 15,898,036 Paid-in capital - - - Treasury Stock (36,677,832) (36,677,832) (5,047,038) Additional paid-in capital 1,680,713,349 1,680,178,673 231,200,280 Retained earnings (Accumulated losses) (568,339,799) (447,752,894) (61,612,849) Accumulated other comprehensive income 28,401,282 20,295,531 2,792,758 Total GreenTree Hospitality Group Ltd. shareholders' equity 1,442,218,280 1,554,164,758 213,860,187 Non-controlling interests 37,815,215 35,515,637 4,887,114 Total shareholders' equity 1,480,033,495 1,589,680,395 218,747,301 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 5,066,798,878 5,123,385,738 705,001,337 GreenTree Hospitality Group Ltd. Unaudited Condensed Consolidated Statements of Comprehensive Income Quarter Ended Six Month Ended June 30, 2023 June 30, 2024 June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2024 RMB RMB US$ RMB RMB US$ Revenues Leased-and-operated revenues 209,887,905 149,158,677 20,524,917 380,778,822 318,068,449 43,767,675 Franchised-and-managed revenues 180,137,883 160,045,182 22,022,950 350,582,259 312,740,035 43,034,461 Wholesales and others 24,963,781 20,507,797 2,821,967 62,848,909 51,130,602 7,035,805 Total revenues 414,989,569 329,711,656 45,369,834 794,209,990 681,939,086 93,837,941 Operating costs and expenses Operating costs (244,907,139) (198,324,685) (27,290,385) (488,062,449) (406,445,036) (55,928,698) Selling and marketing expenses (18,208,671) (15,859,714) (2,182,369) (34,224,250) (34,249,317) (4,712,863) General and administrative expenses (54,119,212) (61,534,248) (8,467,394) (111,874,357) (109,175,877) (15,023,101) Other operating expenses (6,341,735) (211,911) (29,160) (7,834,218) (2,420,193) (333,030) Other general expenses (4,309,239) (5,911,956) (813,512) (15,973,584) (11,756,531) (1,617,753) Total operating costs and expenses (327,885,996) (281,842,514) (38,782,820) (657,968,858) (564,046,954) (77,615,445) Other operating income 11,511,398 36,542,303 5,028,388 14,670,917 38,768,236 5,334,687 Income from operations 98,614,971 84,411,445 11,615,402 150,912,049 156,660,368 21,557,183 Interest income and other, net 9,750,337 11,003,960 1,514,195 17,379,351 19,950,499 2,745,280 Interest expense (3,868,469) (2,629,228) (361,793) (9,396,530) (4,369,057) (601,203) Gains (losses) from investment in equity securities (263,836) (6,172,071) (849,305) (4,800,398) (15,424,655) (2,122,503) Other income, net 43,295,830 3,556,454 489,384 41,146,248 16,791,024 2,310,522 Income before income taxes 147,528,833 90,170,560 12,407,883 195,240,720 173,608,179 23,889,279 Income tax expense (45,241,208) (26,733,733) (3,678,684) (59,950,083) (53,181,694) (7,318,045) Income (loss) before share of gains in equity investees 102,287,625 63,436,827 8,729,199 135,290,637 120,426,485 16,571,234 Share of loss/(income) in equity investees, net of tax (341,265) (1,174,966) (161,681) (786,883) (869,757) (119,683) Net income(loss) 101,946,360 62,261,861 8,567,518 134,503,754 119,556,728 16,451,551 Net loss/(income) attributable to non-controlling interests 1,308,704 (571,587) (78,653) 5,077,298 1,030,179 141,757 Net income attributable to ordinary shareholders 103,255,064 61,690,274 8,488,865 139,581,052 120,586,907 16,593,308 Net earnings per share Class A ordinary share-basic and diluted 1.01 0.61 0.36 1.37 1.19 0.16 Class B ordinary share-basic and diluted 1.01 0.61 0.36 1.37 1.19 0.16 Net earnings per ADS Class A ordinary share-basic and diluted 1.01 0.61 0.36 1.37 1.19 0.16 Class B ordinaryshare-basic and diluted 1.01 0.61 0.36 1.37 1.19 0.16 Weighted average shares outstanding Class A ordinaryshare-basic and diluted 67,416,046 66,780,612 9,189,318 67,416,046 66,780,612 9,189,318 Class B ordinaryshare-basic and diluted 34,762,909 34,762,909 4,783,535 34,762,909 34,762,909 4,783,535 Other comprehensive income, net of tax Foreign currency translation adjustments 185,533 (487,856) (67,131) 996,107 (8,105,751) (1,115,388) Unrealized gains(loss) on available-for-sale investments, net of tax Comprehensive income, net oftax 102,131,893 61,774,005 8,500,387 135,499,861 111,450,977 15,336,163 Comprehensive loss/(income)attributable tonon-controlling interests (4,843,631) (571,587) (78,653) (1,075,037) 1,030,179 141,757 Comprehensive income (loss) attributable to ordinary shareholders 97,288,262 61,202,418 8,421,734 134,424,824 112,481,156 15,477,920 GreenTree Hospitality Group Ltd. Unaudited Hotel Business Results Quarter Ended Six Month Ended June 30, 2023 June 30, 2024 June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2024 RMB RMB US$ RMB RMB US$ Revenues Leased-and-operated revenues 131,490,687 105,851,820 14,565,695 213,563,927 228,393,613 31,428,007 Franchised-and-managed revenues 177,936,543 157,810,770 21,715,485 347,417,000 308,970,282 42,515,726 Others 1,188,730 940,479 129,414 2,225,579 2,085,206 286,934 Total revenues 310,615,960 264,603,069 36,410,594 563,206,506 539,449,101 74,230,667 Operating costs and expenses Hotel operating costs (150,127,380) (143,382,640) (19,730,108) (284,364,378) (289,609,282) (39,851,563) Selling and marketing expenses (13,762,606) (13,222,891) (1,819,530) (24,838,605) (28,677,514) (3,946,157) General and administrative expenses (44,443,478) (54,927,567) (7,558,285) (90,535,547) (93,397,198) (12,851,882) Other operating expenses (692,344) (271,943) (37,421) (843,564) (938,244) (129,107) Other general expenses (4,309,239) (5,911,956) (813,512) (15,973,584) (11,756,531) (1,617,753) Total operating costs and expenses (213,335,047) (217,716,997) (29,958,856) (416,555,678) (424,378,769) (58,396,462) Other operating income 11,183,689 34,667,783 4,770,446 13,791,785 36,850,398 5,070,784 Income from operations 108,464,602 81,553,855 11,222,184 160,442,613 151,920,730 20,904,989 Interest income and other, net 9,597,042 10,978,362 1,510,673 17,072,340 19,908,718 2,739,531 Interest expense (3,167,262) (2,628,376) (361,677) (7,891,952) (4,369,058) (601,202) Gains (losses) from investment in equity securities (263,836) (1,474,720) (202,928) (4,800,398) (10,784,976) (1,484,062) Other income, net 43,122,904 3,404,139 468,425 40,696,364 16,709,039 2,299,240 Income before income taxes 157,753,450 91,833,260 12,636,677 205,518,967 173,384,453 23,858,496 Income tax expense (43,365,471) (27,545,004) (3,790,319) (55,731,325) (52,101,925) (7,169,463) Income (loss) before share of gains in equityinvestees 114,387,979 64,288,256 8,846,358 149,787,642 121,282,528 16,689,033 Share of loss/(income) in equity investees, net of tax (341,265) (1,174,966) (161,681) (786,883) (869,757) (119,683) Net income(loss) 114,046,714 63,113,290 8,684,677 149,000,759 120,412,771 16,569,350 GreenTree Hospitality Group Ltd. Unaudited Restaurant Business Results Quarter Ended Six Month Ended June 30, 2023 June 30, 2024 June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2024 RMB RMB US$ RMB RMB US$ Revenues Leased-and-operated revenues 78,963,181 43,306,857 5,959,222 168,340,074 89,674,836 12,339,668 Franchised-and-managed revenues 2,201,340 2,234,412 307,465 3,165,259 3,769,753 518,735 Wholesales and others 23,775,051 19,752,299 2,718,007 60,623,330 49,505,598 6,812,197 Total revenues 104,939,572 65,293,568 8,984,694 232,128,663 142,950,187 19,670,600 Operating costsand expenses Restaurant operating costs (95,088,176) (55,127,026) (7,585,731) (204,308,159) (117,276,623) (16,137,800) Selling and marketing expenses (4,446,065) (2,636,823) (362,839) (9,385,645) (5,591,136) (769,366) General and administrative expenses (9,675,734) (6,606,681) (909,110) (21,338,810) (15,778,679) (2,171,218) Other operating expenses (5,649,391) 60,032 8,261 (6,990,654) (1,481,949) (203,923) Other general expenses - - - - - - Total operatingcosts andexpenses (114,859,366) (64,310,498) (8,849,419) (242,023,268) (140,128,387) (19,282,307) Other operating income 327,709 1,874,520 257,943 879,132 1,917,838 263,903 Income from operations (9,592,085) 2,857,590 393,218 (9,015,473) 4,739,638 652,196 Interest income and other, net 153,295 25,599 3,522 307,011 41,782 5,750 Interest expense (701,207) (853) (117) (1,504,578) - - Gains (losses) from investment in equity securities - (57,672) (7,936) - - - Other income, net 172,926 43,236 5,949 449,884 (27,094) (3,728) Income beforeincome taxes (9,967,071) 2,867,900 394,636 (9,763,156) 4,754,326 654,218 Income tax expense (1,940,124) 811,271 111,635 (4,347,531) (1,079,769) (148,581) Income (loss) before share of gains in equity investees (11,907,195) 3,679,171 506,271 (14,110,687) 3,674,557 505,637 Share of loss/(income) in equity investees, net of tax - - - - - - Net income(loss) (11,907,195) 3,679,171 506,271 (14,110,687) 3,674,557 505,637 GreenTree Hospitality Group Ltd. Unaudited Condensed Consolidated Statements of Cash Flows Quarter Ended Six Month Ended June 30, 2023 June 30, 2024 June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2024 RMB RMB US$ RMB RMB US$ Operating activities: Net (loss) income 101,946,360 62,261,861 8,567,518 134,503,754 119,556,728 16,451,551 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 28,982,289 29,137,972 4,009,518 60,319,927 60,479,676 8,322,280 Impairment of long-lived assets - - - 2,900,000 - - Share of (income) lossin equity methodinvestments 341,265 1,174,966 161,681 786,883 869,757 119,683 Noncash lease expense 70,769,259 72,411,404 9,964,141 134,823,091 137,229,448 18,883,400 Loss from disposal of a subsidiary - (839,682) (115,544) 1,223,952 (839,682) (115,544) Interest income (1,267,532) (5,216,887) (717,868) (1,657,910) (5,216,887) (717,868) Bad debt expenses 6,320,196 16,294,501 2,242,198 18,679,474 21,768,072 2,995,386 (Gains) losses and impairment on equity securities held 263,836 6,172,071 849,305 4,800,398 15,424,655 2,122,503 Loss (gains) on disposal of property, plant and equipment 341,428 (27,468,283) (3,779,762) 227,841 (25,116,235) (3,456,109) Foreign exchange(gains) losses (2,075,742) (675,522) (92,955) (1,088,199) (8,763,951) (1,205,960) Share-based compensation 40,228 15,662 2,155 28,592 31,324 4,310 Common control acquisition - - - - - - Accounts receivable 12,166,576 (9,573,578) (1,317,368) 5,115,694 (7,729,151) (1,063,567) Inventories 6,481,086 2,827,794 389,117 7,450,726 14,889,563 2,048,872 Amounts due from related parties 2,589,713 697,431 95,970 1,628,528 299,828 41,258 Other current assets (27,171,354) 10,574,968 1,455,164 (34,898,036) 5,084,951 699,713 Other assets 982,532 3,957,871 544,621 5,946,767 1,300,958 179,018 Accounts payable (14,607,485) (3,702,034) (509,417) (9,917,160) (12,560,243) (1,728,347) Amounts due to related parties (47,036) 471,776 64,919 (1,679,391) (1,404,655) (193,287) Salary and welfare payable 1,978,299 2,882,934 396,705 6,472,864 (1,424,059) (195,957) Deferred revenue (1,377,240) (24,826,323) (3,416,216) (5,859,113) (31,702,936) (4,362,469) Advance from customers (7,260,648) 3,539,512 487,053 (3,657,822) (417,287) (57,421) Accrued expenses and other current liabilities (8,464,829) 20,530,026 2,825,026 67,807,146 (3,285,616) (452,116) Income tax payable 32,970,813 (16,508,534) (2,271,650) 51,282,274 (8,261,323) (1,136,796) Unrecognized tax benefits 16,935,503 (13,752,067) (1,892,347) 31,960,399 (6,196,090) (852,610) Operating lease liabilities (68,614,626) (67,855,157) (9,337,180) (124,678,168) (109,769,095) (15,104,730) Other long-term liabilities (1,510,480) (7,223,642) (994,006) (8,081,365) (8,319,829) (1,144,847) Deferred taxes (3,137,502) 13,855,962 1,906,644 (31,332,490) 13,966,300 1,921,827 Net cash provided by operating activities 147,574,909 69,165,002 9,517,422 313,108,656 159,894,221 22,002,173 Investing activities: Purchases of property, plant and equipment (37,617,117) (9,639,401) (1,326,426) (71,733,234) (20,193,926) (2,778,777) Purchases of intangibleassets (309,827) - - (352,281) - - Proceeds fromdisposal of property, plant and equipment 7,723,107 138,000,000 18,989,432 14,696,681 139,733,100 19,227,914 Payment for acquisition of minority equity - (966,000) (132,926) - (966,000) (132,926) Purchases of short-terminvestments (51,370,000) - (51,370,000) - Proceeds from short-term investments 42,242,806 - - 133,643,184 419,362,037 57,706,137 Increase of long-term timedeposits - (222,230,000) (30,579,866) - (222,230,000) (30,579,866) Purchases of long-terminvestments - 222,230,000 30,579,866 - - - Proceeds from disposal of equity securities - - - - - - Proceeds from disposal of a subsidiary 18,900,000 1,500,000 206,407 37,800,000 1,500,000 206,407 Loan to related parties - (270,000) (37,153) - (270,000) (37,153) Repayment from related parties - - - - - - Loan to third parties 1,000,000 (1,200,000) (165,125) - (1,200,000) (165,125) Repayment of loan from thirdparties 13,948,758 4,223,936 581,233 14,417,077 5,595,889 770,020 Loan to fanchisees (2,945,000) (1,600,000) (220,167) (9,974,596) (1,600,000) (220,167) Repayment from franchisees 34,286,988 27,516,214 3,786,357 61,121,572 50,977,221 7,014,699 Net cash (used in) provided by investing activities 25,859,715 157,564,749 21,681,632 128,248,403 370,708,321 51,011,163 Financing activities: Distribution tothe shareholders - (760,321) (104,624) - (760,321) (104,624) Repayment of bank loans 136,600,000 (200,000) (27,521) - (117,000,000) (16,099,736) Proceeds from bank loans (271,400,000) - - (154,400,000) 200,000,000 27,520,916 Capital contribution fromnon-controlling interest holders 117,000,000 - - 117,000,000 - - Net cashprovided by(used in) financing activities (17,800,000) (960,321) (132,145) (37,400,000) 82,239,679 11,316,556 Effect of exchange rate changes on cash and cash equivalents and restricted cash 383,577 (149,700) (20,600) 343,051 (2,799,929) (385,278) Net (decrease) increase in cash and cash equivalents 156,018,201 225,619,730 31,046,309 404,300,110 610,042,292 83,944,614 Cash and cash equivalents atthe beginning ofthe period 982,911,111 1,176,023,274 161,826,188 734,629,202 791,600,712 108,927,883 Cash and cashequivalents at the end of the period 1,138,929,312 1,401,643,004 192,872,497 1,138,929,312 1,401,643,004 192,872,497 GreenTree Hospitality Group Ltd. Unaudited Reconciliation of GAAP and Non-GAAP Results Quarter Ended Six Month Ended June 30, 2023 June 30, 2024 June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2024 RMB RMB US$ RMB RMB US$ Net income 101,946,360 62,261,861 8,567,518 134,503,754 119,556,728 16,451,551 Deduct: Other operating income 11,511,398 36,542,303 5,028,388 14,670,917 38,768,236 5,334,687 Interest income and other, net 9,750,337 11,003,960 1,514,195 17,379,351 19,950,499 2,745,280 Share of gain in equity investees, net of tax - - - - - - Other income, net 43,295,830 3,556,454 489,384 41,146,248 16,791,024 2,310,522 Add: Other operating expenses 6,341,735 211,911 29,160 7,834,218 2,420,193 333,030 Other generalexpenses 4,309,239 5,911,956 813,512 15,973,584 11,756,531 1,617,753 Income tax expenses (benefits) 45,241,208 26,733,733 3,678,684 59,950,083 53,181,694 7,318,045 Share of loss in equity investees,net of tax 341,265 1,174,966 161,681 786,883 869,757 119,683 Interest expenses 3,868,469 2,629,228 361,793 9,396,530 4,369,057 601,203 Depreciation and amortization 29,239,835 29,137,972 4,009,518 60,319,927 60,479,676 8,322,280 Losses from investment in equitysecurities 263,836 6,172,071 849,305 4,800,398 15,424,655 2,122,503 Other expense, net - - - - - - Adjusted EBITDA(Non-GAAP) 126,994,382 83,130,981 11,439,204 220,368,861 192,548,532 26,495,559 Quarter Ended Six Month Ended June 30, 2023 June 30, 2024 June 30,2024 June 30, 2023 June 30, 2024 June 30,2024 RMB RMB US$ RMB RMB US$ Net income 101,946,360 62,261,861 8,567,518 134,503,754 119,556,728 16,451,551 Deduct: Government subsidies (net of 25% tax) 6,275,245 210,000 28,897 6,671,305 469,886 64,658 Gains from investment in equity securities (net of 25% tax) - - - - - - Other income (net of 25% tax) 30,859,686 2,667,340 367,038 30,859,686 12,593,268 1,732,891 Add: Share-based compensation 40,228 15,662 2,155 28,592 31,324 4,310 Losses from investments inequity securities (net of 25% tax) 197,877 4,629,053 636,979 3,600,299 11,568,491 1,591,877 Other expense (net of 25% tax) (1,612,187) - - - - - One-time fees andexpenses 813,078 239,820 33,000 1,960,856 1,055,008 145,174 Other general expenses 4,309,239 5,911,956 813,512 15,973,584 11,756,531 1,617,753 Core net income (Non-GAAP) 68,559,664 70,181,012 9,657,229 118,536,094 130,904,928 18,013,116 Core net incomeper ADS (Non-GAAP) Class A ordinary share-basic and diluted 0.67 0.69 0.10 1.16 1.29 0.18 Class B ordinary share-basic and diluted 0.67 0.69 0.10 1.16 1.29 0.18 Hotel Operational Data June 30, 2023 June 30, 2024 Total hotels in operation: 4,108 4,272 Leased and owned hotels 65 62 Franchised hotels 4,043 4,210 Total hotel rooms in operation 303,387 312,734 Leased and owned hotels 7,137 6,937 Franchised hotels 296,250 305,797 Number of cities 357 353 Quarter Ended 2023 Q2 2024 Q2 Occupancy rate (as a percentage) Leased-and-owned hotels 74.6 % 70.7 % Franchised hotels 77.9 % 72.6 % Blended 77.8 % 72.5 % Average daily rate (in RMB) Leased-and-owned hotels 255 250 Franchised hotels 179 171 Blended 181 173 RevPAR (in RMB) Leased-and-owned hotels 191 177 Franchised hotels 139 124 Blended 141 125 Number of Hotels in Operation Number of Hotel Rooms in Operation June 30, 2023 June 30,2024 June 30, 2023 June 30, 2024 Mid-to-up-scale 438 505 42,338 47,697 GreenTree Eastern 217 227 23,205 24,493 Deepsleep Hotel 7 7 534 534 Gem 54 82 4,873 7,258 Gya 70 75 5,904 6,238 Vx 90 99 7,822 8,695 Others - 15 - 499 Mid-scale 2,933 2,948 229,270 229,970 GreenTree Inn 2,259 2,315 181,015 182,957 GT Alliance 545 503 39,091 37,923 GreenTree Apartment 21 21 1,351 1,385 Vatica 108 109 7,813 7,705 City 118 Selected and others - - - - Economy hotels 737 819 31,779 35,067 Shell 737 819 31,779 35,067 City 118 and others - - - - Total 4,108 4,272 303,387 312,734 Restaurant Operational Data June 30, 2023 June 30, 2024 Total restaurants in operation: 206 183 Leased and owned restaurants 57 24 Franchised restaurants 149 159 Number of cities 66 57 Da Niang Dumplings 170 155 Bellagio 36 28 Quarter Ended 2023 Q2 2024 Q2 ADT Leased-and-owned restaurants 148 165 Franchised restaurants 88 73 Blended 109 90 AC (in RMB) Leased-and-owned restaurants 84 105 Franchised restaurants 41 38 Blended 56 53 ADS (in RMB) Leased-and-owned restaurants 12,456 17,306 Franchised restaurants 3575 2,815 Blended 6,082 4,737 For more information, please contact: GreenTree Ms. Selina YangPhone: +86-158-2166-6251E-mail: ir@998.com Mr. Maple MiaoPhone: +86-181-0184-0639E-mail: ir@998.com Christensen In ShanghaiMr. Jerry XuPhone: +86-138-1680-0706E-mail: jerry.xu@christensencomms.com In Hong Kong Ms. Karen Hui Phone: +852-9266-4140 E-mail: karen.hui@christensencomms.com In the US Ms. Linda Bergkamp Phone: +1-480-614-3004E-mail: linda.bergkamp@christensencomms.com
WUHAN, China, Aug. 13, 2024 /PRNewswire/ -- China Automotive Systems, Inc. (NASDAQ: CAAS) ("CAAS" or the "Company"), a leading power steering components and systems supplier in China, today announced its unaudited financial results for the second quarter and six months ended June 30, 2024. Second Quarter 2024 Highlights Net sales rose 15.4% year-over-year to $158.6 million from $137.4 million in the second quarter of 2023. Gross profit increased by 29.0% year-over-year to $29.3 million from $22.7 million in the second quarter of 2023; gross margin increased to 18.5% in the second quarter of 2024 from 16.5% in the second quarter of 2023 Income from operations increased by 38.7% year-over-year to $10.8 million, from income from operations of $7.8 million in the second quarter of 2023. Net income attributable to parent company's common shareholders was $7.1 million, or diluted earnings per share of $0.24. First Six Months of 2024 Highlights Net sales grew by 6.6% year-over-year to $298.0 million, compared to $279.7 million in the first six months of 2023. Gross profit increased by 20.4% year-over-year to $53.4 million, compared to $44.3 million in the first six months of 2023; gross margin increased to 17.9% in the first six months of 2024 from 15.9% in the same period last year Income from operations rose by 31.7% year-over-year to $20.5 million compared to income from operations of $15.5 million in the first six months of 2023. Net income attributable to parent company's common shareholders was $15.4 million. Diluted earnings per share attributable to parent company's common shareholders was $0.51. Cash and cash equivalents, and pledged cash were $148.4 million, or approximately $4.92 per share, as of June 30, 2024. A special cash dividend of $0.80 per common share has been declared for shareholders of record on July 30, 2024. Mr. Qizhou Wu, Chief Executive Officer of CAAS, commented, "We are pleased to report strong top line growth and accelerating margin expansion. Sales growth was led by an increase of 33.7% in sales of Electric Power Steering ("EPS") products in the second quarter of 2024, which now accounts for one-third of our total sales." "According to statistics from the China Association of Automobile Manufacturers, overall automobile sales in China increased by 6.1% year-over-year in the first six months of 2024 with passenger car sales up by 6.3% and commercial vehicle sales ahead by 4.9%. Sales of domestic cars rose by 1.4% and Chinese vehicle exports increased by 30.5% for the first six months of 2024." "Based on our recent financial performance, current financial condition, expected cash requirements and future free cash-flow generation, we rewarded our shareholders with a special cash dividend of $0.80 per common share. We are confident that our operational excellence and technology prowess will eventually be reflected in appropriate long-term shareholder value." Mr. Jie Li, Chief Financial Officer of CAAS, commented, "We maintained a strong balance sheet with cash and cash equivalents plus pledged cash of $148.4 million, working capital of $190.0 million and positive cash flow from operations in the first six months of 2024. In August 2024, we celebrate the 20th anniversary of our NASDAQ listing. Since our initial listing, we have grown from a small Chinese domestic auto parts company to a large global tier-1 supplier with customers in North America, South America, Europe and Asia. With our diversified customer base and best-in-class product offerings, we look forward to continuing long-term growth in China and the global markets." Second Quarter of 2024 Net sales increased by 15.4% year-over-year to $158.6 million in the second quarter of 2024, compared to $137.4 million in the second quarter of 2023. Net sales of traditional steering products and parts increased by 7.5% year-over-year to $103.0 million for the second quarter of 2024, compared to $95.8 million for the same quarter in 2023. Net sales of EPS products rose 33.7% year-over-year to $55.6 million from $41.6 million for the same period in 2023. EPS product sales grew to 35.1% of the total net sales for the second quarter of 2024, compared to 30.3% for the same period in 2023. Sales of Henglong's passenger vehicle steering customers increased by 18.9% and sales to Chery Auto rose by 28.8% due to higher demand. Export sales to North American customers were consistent at $26.8 million in the second quarter of 2024, compared to $28.9 million in the second quarter of 2023. North American sales declined due to decreased demand from one customer. Sales in Brazil were $12.0 million in the second quarter of 2024, compared to $12.2 million in the second quarter of 2023. Gross profit grew by 29.0% year-over-year to $29.3 million from $22.7 million in the second quarter of 2023. Gross margin increased to 18.5% in the second quarter of 2024 from 16.5% in the second quarter of 2023. The increase in gross margin was mainly due to the changes in the product mix and improved cost management. Gain on other sales was $1.7 million in the second quarter of 2024, compared to $0.7 million in the second quarter of 2023. Selling expenses increased by 21.6% year-over-year to $4.6 million compared to $3.8 million in the second quarter of 2023. Selling expenses represented 2.9% of net sales in the second quarter of 2024, compared to 2.8% in the second quarter of 2023. General and administrative expenses ("G&A expenses") increased by 40.7% year-over-year to $7.4 million, compared to $5.3 million in the second quarter of 2023, primarily due to higher consulting fee and business tax and surcharges. G&A expenses represented 4.7% of net sales in the second quarter of 2024, compared to 3.9% of net sales in the second quarter of 2023. Research and development expenses ("R&D expenses") increased by 23.9% year-over-year to $8.2 million compared to $6.6 million in the second quarter of 2023. R&D expenses represented 5.2% of net sales in the second quarter of 2024, compared to 4.8% in the second quarter of 2023. Research and development programs include electric power and hydraulic steering systems, automotive intelligence and software technologies, automobile electronics, steering columns, high polymer materials, automotive parts, manufacturing technologies, and automotive parts among other products. Other income was $1.7 million for the second quarter of 2024, compared to $2.0 million for the three months ended June 30, 2023. The decrease was primarily due to lower government subsidies in the second quarter of 2024. Income from operations rose 38.7% to $10.8 million in the second quarter of 2024, from $7.8 million in the second quarter of 2023. The increase was primarily due to higher sales and better margins. Interest expense was $0.2 million in the second quarter of 2024, compared to $0.3 million in the second quarter of 2023. Net financial expense was $0.7 million in the second quarter of 2024, compared to net financial income of $4.0 million in the second quarter of 2023. The change in net financial expense/income was primarily due to foreign exchange volatility generating a loss in the second quarter of 2024 compared with income in last year's same quarter. Income before income tax expenses and equity in earnings of affiliated companies was $11.7 million in the second quarter of 2024, compared to income before income tax expenses and equity in earnings of affiliated companies of $13.4 million in the second quarter of 2023. The change in income before income tax expenses and equity in earnings of affiliated companies was mainly due to foreign exchange volatility generating a loss in the second quarter of 2024 compared with income in last year's same quarter. Income tax expense was $2.1 million in the second quarter of 2024 compared to $1.5 million for the second quarter of 2023 primarily due to an increase in the Global Intangible Low-Taxed Income ("GILTI") tax expenses. Net income attributable to parent company's common shareholders was $7.1 million in the second quarter of 2024, compared to net income attributable to parent company's common shareholders of $10.5 million in the second quarter of 2023. Diluted earnings per share was $0.24 in the second quarter of 2024, compared to $0.35 per share in the second quarter of 2023. The weighted average number of diluted common shares outstanding was 30,185,702 in the second quarter of 2024, compared to 30,189,537 in the second quarter of 2023. First Six Months of 2024 Net sales increased by 6.6% year-over-year to $298.0 million in the first six months of 2024, compared to $279.7 million in the first six months of 2023 primarily due to increased sales of EPS systems. Six-month gross profit increased by 20.4% year-over-year to $53.4 million from $44.3 million in the corresponding period last year. Six-month gross margin was 17.9% compared with 15.9% in the first six months of 2023. Gain on other sales was $2.2 million in the first six months of 2024, compared to $1.4 million in the corresponding period last year. Income from operations increased by 31.7% year-over-year to $20.5 million in the first six months of 2024 from $15.5 million in the first six months of 2023. Net income attributable to parent company's common shareholders was $15.4 million in the first six months of 2024, compared to net income attributable to parent company's common shareholders of $17.3 million in the corresponding period in 2023. Diluted earnings per share in the first six months of 2024 were $0.51, compared to diluted earnings per share of $0.57 in the first six months of 2023. Balance Sheet As of June 30, 2024, total cash and cash equivalents, and pledged cash were $148.4 million, total accounts receivable including notes receivable were $288.1 million, accounts payable including notes payable, were $254.0 million and short-term loans were $46.6 million. Total parent company stockholders' equity was $362.9 million as of June 30, 2024, compared to $344.5 million as of December 31, 2023. Business Outlook Management has reiterated its revenue guidance for the full year 2024 of $605.0 million. This target is based on the Company's current views on operating and market conditions, which are subject to change. Conference Call Management will conduct a conference call on August 13, 2024 at 7:00 A.M. EDT/7:00 P.M. Beijing Time to discuss these results. A question and answer session will follow management's presentation. To participate, please see the dial-in information below, enter the call 10 minutes before the call start time and ask to be connected to the "China Automotive Systems" conference call: Phone Number: +1-888-506-0062 (North America)Phone Number: +1-973-528-0011 (International)Mainland China Toll Free: +86-400-120-3199Code: 748049 A replay of the call will be available on the Company's website under the investor relations section. About China Automotive Systems, Inc. Based in Hubei Province, the People's Republic of China, China Automotive Systems, Inc. is a leading supplier of power steering components and systems to the Chinese automotive industry, operating through eight Sino-foreign joint ventures. The Company offers a full range of steering system parts for passenger automobiles and commercial vehicles. The Company currently offers four separate series of power steering with an annual production capacity of over 8 million sets of steering gears, columns and steering hoses. Its customer base is comprised of leading auto manufacturers, such as China FAW Group, Corp., Dongfeng Auto Group Co., Ltd., BYD Auto Company Limited, Beiqi Foton Motor Co., Ltd. and Chery Automobile Co., Ltd. in China, and Stellantis N.V. and Ford Motor Company in North America. For more information, please visit: http://www.caasauto.com. Forward-Looking Statements This press release contains statements that are "forward-looking statements" as defined under the Private Securities Litigation Reform Act of 1995. Forward-looking statements represent our estimates and assumptions only as of the date of this press release. Our actual results may differ materially from the results described in or anticipated by our forward-looking statements due to certain risks and uncertainties. As a result, the Company's actual results could differ materially from those contained in these forward-looking statements due to a number of factors, including those described under the heading "Risk Factors" in the Company's Annual Report on Form 10-K as filed with the Securities and Exchange Commission on March 28, 2024, and in documents subsequently filed by the Company from time to time with the Securities and Exchange Commission. Any of these factors and other factors beyond our control, could have an adverse effect on the overall business environment, cause uncertainties in the regions where we conduct business, cause our business to suffer in ways that we cannot predict and materially and adversely impact our business, financial condition and results of operations. A prolonged disruption or any further unforeseen delay in our operations of the manufacturing, delivery and assembly process within any of our production facilities could continue to result in delays in the shipment of products to our customers, increased costs and reduced revenue. We expressly disclaim any duty to provide updates to any forward-looking statements made in this press release, whether as a result of new information, future events or otherwise. For further information, please contact: Jie LiChief Financial OfficerChina Automotive Systems, Inc.jieli@chl.com.cn Kevin TheissAwaken Advisors+1-212-521-4050Kevin@awakenlab.com -Tables Follow – China Automotive Systems, Inc. and Subsidiaries Condensed Unaudited Consolidated Statements of Operations and Comprehensive Income (In thousands of USD, except share and per share amounts) Three Months Ended June 30, 2024 2023 Net product sales ($13,550 and $13,194 sold to related parties for the three months ended June 30, 2024 and 2023) $ 158,608 $ 137,410 Cost of products sold ($7,689 and $7,311 purchased from related parties for the three months ended June 30, 2024 and 2023) 129,306 114,692 Gross profit 29,302 22,718 Gain on other sales 1,720 742 Less: Operating expenses Selling expenses 4,614 3,794 General and administrative expenses 7,418 5,271 Research and development expenses 8,184 6,606 Total operating expenses 20,216 15,671 Income from operations 10,806 7,789 Other income, net 1,735 1,963 Interest expense (183) (276) Financial (expense)/income, net (690) 3,963 Income before income tax expenses and equity in earnings of affiliated companies 11,668 13,439 Less: Income taxes 2,108 1,487 Add: Equity in losses of affiliated companies (805) (484) Net income 8,755 11,468 Less: Net income attributable to non-controlling interests 1,608 995 Accretion to redemption value of redeemable non-controlling interests (7) (7) Net income attributable to parent company's common shareholders $ 7,140 $ 10,466 Comprehensive income: Net income $ 8,755 $ 11,468 Other comprehensive income: Foreign currency translation loss, net of tax (2,846) (16,886) Comprehensive income/(loss) 5,909 (5,418) Less: Comprehensive income/(loss) attributable to non-controlling interests 1,431 (80) Accretion to redemption value of redeemable non-controlling interests (7) (7) Comprehensive income/(loss) attributable to parent company $ 4,471 $ (5,345) Net income attributable to parent company's common shareholders per share - Basic $ 0.24 $ 0.35 Diluted $ 0.24 $ 0.35 Weighted average number of common shares outstanding - Basic 30,185,702 30,185,702 Diluted 30,185,702 30,189,537 China Automotive Systems, Inc. and Subsidiaries Condensed Unaudited Consolidated Statements of Operations and Comprehensive Income (In thousands of USD, except share and per share amounts) Six Months Ended June 30, 2024 2023 Net product sales ($24,910 and $26,770 sold to related parties for the six months ended June 30, 2024 and 2023) $ 298,002 $ 279,653 Cost of products sold ($14,657 and $14,326 purchased from related parties for the six months ended June 30, 2024 and 2023) 244,631 235,317 Gross profit 53,371 44,336 Gain on other sales 2,234 1,395 Less: Operating expenses Selling expenses 8,687 7,178 General and administrative expenses 12,965 10,024 Research and development expenses 13,496 12,996 Total operating expenses 35,148 30,198 Income from operations 20,457 15,533 Other income, net 4,138 3,465 Interest expense (441) (525) Financial (expense)/income, net (702) 3,541 Income before income tax expenses and equity in earnings of affiliated companies 23,452 22,014 Less: Income taxes 3,851 2,316 Add: Equity in losses of affiliated companies (1,582) (347) Net income 18,019 19,351 Less: Net income attributable to non-controlling interests 2,597 2,050 Accretion to redemption value of redeemable non-controlling interests (15) (15) Net income attributable to parent company's common shareholders $ 15,407 $ 17,286 Comprehensive income: Net income $ 18,019 $ 19,351 Other comprehensive income: Foreign currency translation loss, net of tax (3,194) (12,332) Comprehensive income 14,825 7,019 Less: Comprehensive income attributable to non-controlling interests 2,372 1,241 Accretion to redemption value of redeemable non-controlling interests (15) (15) Comprehensive income attributable to parent company $ 12,438 $ 5,763 Net income attributable to parent company's common shareholders per share - Basic $ 0.51 $ 0.57 Diluted $ 0.51 $ 0.57 Weighted average number of common shares outstanding - Basic 30,185,702 30,185,702 Diluted 30,185,702 30,191,309 China Automotive Systems, Inc. and Subsidiaries Condensed Unaudited Consolidated Balance Sheets (In thousands of USD unless otherwise indicated) June 30, 2024 December 31, 2023 ASSETS Current assets: Cash and cash equivalents $ 107,094 $ 114,660 Pledged cash 41,291 40,534 Accounts and notes receivable, net - unrelated parties 271,391 261,237 Accounts and notes receivable, net - related parties 16,738 8,169 Inventories 107,438 112,392 Other current assets 26,112 27,083 Total current assets 570,064 564,075 Non-current assets: Property, plant and equipment, net 100,098 101,359 Land use rights, net 9,044 9,233 Long-term investments 57,360 60,173 Other non-current assets 48,427 31,600 Total assets $ 784,993 $ 766,440 LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS' EQUITY Current liabilities: Short-term loans $ 46,576 $ 48,005 Accounts and notes payable-unrelated parties 241,183 240,739 Accounts and notes payable-related parties 12,821 12,839 Accrued expenses and other payables 46,237 44,771 Other current liabilities 33,221 37,385 Total current liabilities 380,038 383,739 Long-term liabilities: Long-term tax payable — 8,781 Other non-current liabilities 6,204 5,498 Total liabilities $ 386,242 $ 398,018 Commitments and Contingencies Mezzanine equity: Redeemable non-controlling interests 628 613 Stockholders' equity: Common stock, $0.0001 par value -- Authorized -- 80,000,000 shares; Issued – 32,338,302 and 32,338,302 shares as of June 30, 2024 and December 31, 2023, respectively $ 3 $ 3 Additional paid-in capital 69,722 63,731 Retained earnings- Appropriated 12,174 11,851 Unappropriated 299,916 284,832 Accumulated other comprehensive income (11,227) (8,258) Treasury stock – 2,152,600 and 2,152,600 shares as of June 30, 2024 and December 31, 2023, respectively (7,695) (7,695) Total parent company stockholders' equity 362,893 344,464 Non-controlling interests 35,230 23,345 Total stockholders' equity 398,123 367,809 Total liabilities, mezzanine equity and stockholders' equity $ 784,993 $ 766,440 China Automotive Systems, Inc. and Subsidiaries Condensed Unaudited Consolidated Statements of Cash Flows (In thousands of USD unless otherwise indicated) Six months Ended June 30, 2024 2023 Cash flows from operating activities: Net income $ 18,019 $ 19,351 Adjustments to reconcile net income from operations to net cash provided by operating activities: Depreciation and amortization 9,868 9,528 Reversal of credit losses 9 (459) Deferred income taxes — 237 Equity in losses of affiliated companies 1,582 347 Loss on disposal of property, plant and equipment 773 15 (Increase)/decrease in: Accounts and notes receivable (20,451) (18,323) Inventories 4,271 8,355 Other current assets 3,654 (904) Increase/(decrease) in: Accounts and notes payable 1,994 (10,323) Accrued expenses and other payables 1,134 (604) Long-term taxes payable (7,025) (5,268) Other current liabilities (4,697) (2,004) Net cash provided by/(used in) operating activities 9,131 (52) Cash flows from investing activities: Increase in demand loans included in other non-current assets — (14) Cash received from disposal of property, plant and equipment sales 607 582 Payments to acquire property, plant and equipment (including $2,839 and $2,022 paid to related parties for the six months ended June 30, 2024 and 2023, respectively) (10,016) (5,438) Payments to acquire intangible assets (332) (2,361) Investments under the equity method — (7,729) Purchase of short-term investments (40,054) (40,491) Proceeds from maturities of short-term investments 20,626 30,822 Cash received from long-term investments 937 583 Net cash used in investing activities (28,232) (24,046) Cash flows from financing activities: Proceeds from bank loans 47,054 34,280 Repayments of bank loans (48,384) (39,836) Cash received from capital contributions of a non-controlling interest 15,504 — Net cash provided by/(used in) financing activities 14,174 (5,556) Effects of exchange rate on cash, cash equivalents and pledged cash (1,882) (3,756) Net decrease in cash, cash equivalents and pledged cash (6,809) (33,410) Cash, cash equivalents and pledged cash at beginning of the period 155,194 158,951 Cash, cash equivalents and pledged cash at end of the period $ 148,385 $ 125,541
PHILADELPHIA and PERTH, Australia, Aug. 7, 2024 /PRNewswire/ -- Realized Average Pricing of $17,200 / Product Metric Ton for Lithium Hydroxide and Carbonate in the Second Quarter Tracking Towards High End of $60 to 80 million Cost Savings Guidance in 2024 and Accelerating Further Cost Reductions Projecting a 25% Increase in Combined Lithium Hydroxide and Carbonate Volume in Both 2024 and 2025 versus the Prior Year Reducing Capital Spending by ~$500 million Over Next 24 Months in Response to Current Market Conditions Arcadium Lithium Investor Day Scheduled for September 19th Arcadium Lithium plc (NYSE: ALTM, ASX: LTM, "Arcadium Lithium" or the "Company") today reported results for the second quarter of 2024. Second Quarter Highlights Second quarter revenue was $255 million and reported attributable GAAP net income was $85.7 million, or 7 cent per diluted share. Adjusted EBITDA1 was $99.1 million and adjusted earnings per diluted share2 were 5 cents. The Company realized average pricing of $17,200 per product metric ton for combined lithium hydroxide and carbonate volumes in the second quarter. Total volumes in the second quarter were up slightly versus the first quarter, with higher carbonate and hydroxide sales partially offset by lower spodumene sales due to reduced production at Mt. Cattlin. Average realized pricing was higher sequentially for spodumene, but lower across all other products. This decline was driven by a combination of lower market prices for lithium chemicals, the lag impact of price indices on a portion of the Company's carbonate and hydroxide volumes, and changes in both product and customer mix. "We continue to focus on leveraging our low-cost, high quality operational footprint and a commercial strategy of securing long term contracts with strategic customers to navigate through all market environments," said Paul Graves, president and chief executive officer of Arcadium Lithium. "Similar to last quarter, this approach helped us to achieve higher realized pricing in the second quarter than we would have under a fully market-based pricing approach, and to deliver strong underlying profitability." 1 Reconciliation of Adjusted EBITDA, a non-GAAP measure, to net income attributable to Arcadium Lithium plc, the most directly comparable financial measure presented in accordance with GAAP, is set forth in the reconciliation table accompanying this release. 2 Corresponds to Diluted adjusted after-tax earnings per share in the accompanying financial tables. Reconciliation of Diluted adjusted after-tax earnings per share, a non-GAAP measure, to Diluted earnings per ordinary share (GAAP), the most directly comparable financial measure presented in accordance with GAAP, is set forth in the reconciliation table accompanying this release. Cost Savings Arcadium Lithium is expecting to deliver cost savings in 2024 at the higher end of its $60 to 80 million guidance range. These savings are a result of organizational restructuring, operating and logistics savings and the elimination of third-party and other services across the two legacy companies. Operating and logistics savings predominately relate to raw materials, energy and transportation in Argentina and several key supplier contracts have been renegotiated with immediate effect. In light of progress made to date and the changing market conditions since merger completion, Arcadium Lithium is accelerating further cost reduction initiatives. The Company previously announced it expects to achieve total cost savings of $125 million per annum by three years of merger completion and has commenced a program to accelerate the delivery of these cost savings. 2024 and 2025 Volumes Arcadium Lithium is projecting a 25% increase in combined lithium hydroxide and lithium carbonate sales volumes for the full year compared to 2023, with a further 25% increase in 2025 compared to 2024, both driven by already-completed expansions. The Company continues to increase production levels at its recently completed expansions in Argentina. Both expansions are currently producing commercial volumes of lithium carbonate, resulting in higher sales volumes of carbonate and hydroxide in the second half of the year. The process of starting up both expansions means that we expect to see further volume growth from both Olaroz and Fenix in 2025 as they steadily move towards delivering their total nameplate capacity of 40,000 metric tons and 33,000 metric tons (including lithium chloride), respectively. For lithium hydroxide, the combined 30,000 metric tons of expansions in Bessemer City (U.S.), Zhejiang (China) and Naraha (Japan) are all finalizing qualification with key customers. They are expected to produce increasing commercial volumes as the lithium carbonate production in Argentina increases to feed them. Capital Spending and Capacity Expansions "Despite where lithium market prices are today, we still see a strong long-term growth trajectory for lithium demand and expect a return to healthier market fundamentals over time," continued Graves. "However, the market is clearly indicating that the industry does not need to add supply at the same pace as previously expected. We have therefore decided to defer investment in two of our four current expansion projects. While we remain fully committed to developing our highly attractive portfolio of expansion opportunities, each of which is expected to be amongst the lowest cost lithium operations globally when completed, we will seek to do so on a timeline that is supported by both the market and our customers." Arcadium Lithium intends to pause current investment in its 40,000 metric ton (LCE) spodumene Galaxy project in Canada (formerly "James Bay") and is exploring the opportunity to bring in a partner that is interested in providing capital for the project in return for a long-term strategic investment. The pause in spending will be structured to minimize both cost and timing disruption when the project is ultimately resumed. Additionally, Arcadium Lithium is revisiting the sequencing of its combined 25,000 metric ton lithium carbonate projects at the Salar del Hombre Muerto in Argentina. Rather than execute Fénix Phase 1B and Sal de Vida Stage 1 simultaneously as previously announced, the projects will now be completed sequentially. As a result of these actions, the Company will immediately reduce its capital spending and plans to spend approximately $500 million less over the next 24 months. The Company has no plans to alter the development of Nemaska Lithium, a 32,000 metric ton integrated spodumene to hydroxide project in Canada. Arcadium Lithium is preparing for an upcoming Investor Day in September where we will provide our views on the evolution of the lithium market and how they align with our latest expansion plans and broader strategic objectives for the business. 2024 Outlook Scenarios3 Arcadium Lithium continues to expect higher overall volumes year over year, with a 25% increase in combined lithium hydroxide and lithium carbonate sales offset by lower spodumene concentrate sales. The table below reflects Revenue and Adjusted EBITDA outcomes for Arcadium Lithium based on two different lithium market price scenarios for the second half of 2024. These scenarios should not be interpreted as a forecast by Arcadium Lithium as to the likely range of lithium prices during the period. It keeps constant the midpoints of the Company's expected sales volumes, cost savings and SG&A for 2024 while overlaying the pricing mechanisms of existing commercial agreements: Second Half 2024 Average Market Price4 Full Year 2024 Units $12/kg $15/kg Revenue $ million ~1,100 ~1,200 Adjusted EBITDA5 $ million ~380 ~470 Adjusted EBITDA Margin 5 35 % 39 % The table below provides an outlook for other select financial items: Metric Units Full Year 2024 Selling, general and administrative expenses6 $ million ~115 Depreciation & amortization $ million ~100 Adjusted tax rate 5 25 % 30 % Full-year weighted average diluted shares outstanding 7 million ~1,150 Capital spending $ million 550 700 3 Reflects 100% consolidation of Olaroz and Nemaska Lithium, in which Arcadium Lithium has current economic interests of 66.5% and 50%, respectively. 4 Reference market prices meant to reflect multiple lithium products on an LCE equivalent basis. 5 Although Arcadium Lithium provides an outlook for Adjusted EBITDA, Adjusted EBITDA margin and adjusted tax rate, each of these a non-GAAP measure, the Company is not able to do so for the most directly comparable measures calculated and presented in accordance with GAAP. Certain elements of the composition of the GAAP amounts are not predictable, making it impractical for the Company to provide an outlook for such GAAP measures or to reconcile corresponding non-GAAP financial measures to such GAAP measures without unreasonable efforts. For the same reason, the Company is unable to address the probable significance of the unavailable information. Such elements include, but are not limited to, restructuring and transaction related charges. As a result, no GAAP equivalent outlook is provided for these metrics. 6 Includes Research and development expenses. 7 Inclusive of 67.7 million dilutive share equivalents attributable to 2025 Notes. Arcadium Lithium Contacts Investors: Daniel Rosen +1 215 299 6208daniel.rosen@arcadiumlithium.com Phoebe Lee +61 413 557 780phoebe.lee@arcadiumlithium.com Media: Karen Vizental +54 9 114 414 4702karen.vizental@arcadiumlithium.com Supplemental Information In this press release, Arcadium Lithium uses the financial measures Adjusted EBITDA, Diluted adjusted after-tax earnings per share, and Adjusted cash provided by operations. These terms are not calculated in accordance with generally accepted accounting principles (GAAP). Definitions of these terms, as well as a reconciliation to the most directly comparable financial measure calculated and presented in accordance with GAAP, are provided on our website: ir.arcadiumlithium.com and elsewhere in this press release or the financial tables that accompany this press release. About Arcadium Lithium Arcadium Lithium is a leading global lithium chemicals producer committed to safely and responsibly harnessing the power of lithium to improve people's lives and accelerate the transition to a clean energy future. We collaborate with our customers to drive innovation and power a more sustainable world in which lithium enables exciting possibilities for renewable energy, electric transportation and modern life. Arcadium Lithium is vertically integrated, with industry-leading capabilities across lithium extraction processes, including hard-rock mining, conventional brine extraction and direct lithium extraction (DLE), and in lithium chemicals manufacturing for high performance applications. We have operations around the world, with facilities and projects in Argentina, Australia, Canada, China, Japan, the United Kingdom and the United States. For more information, please visit us at www.ArcadiumLithium.com. Important Information and Legal Disclaimer: Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Certain statements in this news release are forward-looking statements. In some cases, we have identified forward-looking statements by such words or phrases as "will likely result," "is confident that," "expect," "expects," "should," "could," "may," "will continue to," "believe," "believes," "anticipates," "predicts," "forecasts," "estimates," "projects," "potential," "intends" or similar expressions identifying "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including the negative of those words and phrases. Such forward-looking statements are based on our current views and assumptions regarding future events, future business conditions and the outlook for Arcadium Lithium based on currently available information. There are important factors that could cause Arcadium Lithium's actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements, including the supply and demand in the market for our products as well as pricing for lithium and high-performance lithium compounds; our ability to realize the anticipated benefits of the integration of the businesses of Livent and Allkem or of any future acquisitions; our ability to acquire or develop additional reserves that are economically viable; the existence, availability and profitability of mineral resources and mineral and ore reserves; the success of our production expansion efforts, research and development efforts and the development of our facilities; our ability to retain existing customers; the competition that we face in our business; the development and adoption of new battery technologies; additional funding or capital that may be required for our operations and expansion plans; political, financial and operational risks that our lithium extraction and production operations, particularly in Argentina, expose us to; physical and other risks that our operations and suppliers are subject to; our ability to satisfy customer qualification processes or customer or government quality standards; global economic conditions, including inflation, fluctuations in the price of energy and certain raw materials; the ability of our joint ventures, affiliated entities and contract manufacturers to operate according to their business plans and to fulfill their obligations; severe weather events and the effects of climate change; extensive and dynamic environmental and other laws and regulations; our ability to obtain and comply with required licenses, permits and other approvals; and other factors described under the caption entitled "Risk Factors" in Arcadium Lithium's 2023 Form 10-K filed with the Securities and Exchange Commission ("SEC") on February 29, 2024, as well as Arcadium Lithium's other SEC filings and public communications. Although Arcadium Lithium believes the expectations reflected in the forward-looking statements are reasonable, Arcadium Lithium cannot guarantee future results, level of activity, performance or achievements. Moreover, neither Arcadium Lithium nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. Arcadium Lithium is under no duty to update any of these forward-looking statements after the date of this news release to conform its prior statements to actual results or revised expectations. ARCADIUM LITHIUM PLC CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited, in millions, except per share data) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 (1) 2024 2023 (1) Revenue $ 254.5 $ 235.8 $ 515.7 $ 489.3 Costs of sales 174.1 88.5 328.9 174.8 Gross margin 80.4 147.3 186.8 314.5 Selling, general and administrative expenses 15.5 17.6 55.4 33.9 Research and development expenses 1.5 1.0 2.6 2.0 Restructuring and other charges 21.9 24.3 101.7 26.3 Total costs and expenses 213.0 131.4 488.6 237.0 Income from operations before equity in net loss of unconsolidated affiliate, interest income, net, loss on debt extinguishment and other gains 41.5 104.4 27.1 252.3 Equity in net loss of unconsolidated affiliate — 7.2 — 15.3 Interest income, net (9.3) — (20.3) — Loss on debt extinguishment 0.9 — 1.1 — Other gains (79.9) (7.6) (157.2) (6.5) Income from operations before income taxes 129.8 104.8 203.5 243.5 Income tax expense 35.3 14.6 89.1 38.5 Net income $ 94.5 $ 90.2 $ 114.4 $ 205.0 Net income attributable to noncontrolling interests 8.8 — 13.1 — Net income attributable to Arcadium Lithium plc $ 85.7 $ 90.2 $ 101.3 $ 205.0 Basic earnings per ordinary share $ 0.08 $ 0.21 $ 0.10 $ 0.47 Diluted earnings per ordinary share $ 0.07 $ 0.18 $ 0.09 $ 0.41 Weighted average ordinary shares outstanding - basic 1,074.9 432.3 1,064.2 432.2 Weighted average ordinary shares outstanding - diluted 1,143.5 503.9 1,132.9 503.7 1. For the three and six months ended June 30, 2023, basic and diluted earnings per ordinary share and weighted average ordinary shares outstanding - basic and diluted amounts represent predecessor Livent and have been adjusted to reflect the 2.406 Exchange Ratio. Represents the results of predecessor Livent's operations for three and six months ended June 30, 2023 which do not include the operations of Allkem. ARCADIUM LITHIUM PLC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES RECONCILIATION OF NET INCOME ATTRIBUTABLE TO ARCADIUM LITHIUM PLC (GAAP) TO ADJUSTED EBITDA (NON-GAAP) (Unaudited) Three Months Ended June 30, Six Months Ended June 30, (in Millions) 2024 2023 (1) 2024 2023 (1) Net income attributable to Arcadium Lithium plc $ 85.7 $ 90.2 $ 101.3 $ 205.0 Add back: Net income attributable to noncontrolling interests 8.8 — 13.1 — Interest income, net (9.3) — (20.3) — Income tax expense 35.3 14.6 89.1 38.5 Depreciation and amortization 24.3 7.0 41.5 13.8 EBITDA (Non-GAAP) (2) 144.8 111.8 224.7 257.3 Add back: Argentina remeasurement (gains)/losses (a) (57.6) 4.8 (96.2) 8.9 Restructuring and other charges (b) 21.9 24.3 101.7 26.3 Loss on debt extinguishment (c) 0.9 — 1.1 — Inventory step-up, Allkem Livent Merger (d) 4.7 — 20.5 — Other losses/(gains) (e) 1.2 5.0 (7.4) 10.8 Subtract: Blue Chip Swap gain (f) (16.8) (11.4) (36.5) (11.4) Adjusted EBITDA (Non-GAAP) (2) $ 99.1 $ 134.5 $ 207.9 $ 291.9 1. Represents the results of predecessor Livent's operations for three and six months ended June 30, 2023 which do not include the operations of Allkem. 2. We evaluate operating performance using certain Non-GAAP measures such as EBITDA, which we define as net income attributable to Arcadium Lithium plc plus noncontrolling interests, interest income, net, income tax expense and depreciation and amortization; and Adjusted EBITDA, which we define as EBITDA adjusted for Argentina remeasurement (gains)/losses, restructuring and other charges, Merger-related inventory step-up, certain Blue Chip Swap gains and other losses/(gains). Management believes the use of these Non-GAAP measures allows management and investors to compare more easily the financial performance of its underlying business from period to period. The Non-GAAP information provided may not be comparable to similar measures disclosed by other companies because of differing methods used by other companies in calculating EBITDA and Adjusted EBITDA. This measure should not be considered as a substitute for net income or other measures of performance or liquidity reported in accordance with U.S. GAAP. The above table reconciles EBITDA and Adjusted EBITDA from net income. a. Represents impact of currency fluctuations primarily on deferred income tax assets and liabilities. Also includes impact of currency fluctuations on other tax assets and liabilities and on long-term monetary assets associated with our capital expansion as well as foreign currency devaluations. The remeasurement losses are included within Other gains in our condensed consolidated statements of operations but are excluded from our calculation of Adjusted EBITDA because of: i.) their nature as income tax related; ii.) their association with long-term capital projects which will not be operational until future periods; or iii.) the severity of the devaluations and their immediate impact on our operations in the country. b. We continually perform strategic reviews and assess the return on our business. This sometimes results in management changes or in a plan to restructure the operations of our business. As part of these restructuring plans, demolition costs and write-downs of long-lived assets may occur. The three months ended June 30, 2024 and 2023 include costs related to the combination of Livent and Allkem in a stock-for-stock transaction (the "Transaction") of $19.8 million and $18.8 million, respectively. The six months ended June 30, 2024 and 2023 include costs related to the Transaction of $86.8 million and $18.8 million, respectively. The six months ended June 30, 2024 and 2023 include severance-related costs of $14.1 million and $2.4 million, respectively. c. The three months ended June 30, 2024 represents a prepayment fee incurred when the Sal de Vida Project Financing Facility was repaid in its entirety by SDJ SA on May 30, 2024. The six months ended June 30, 2024 also includes $0.2 million for the partial write-off of deferred financing costs for amendments to the Revolving Credit Facility. The debt extinguishment losses are excluded from our calculation of Adjusted EBITDA because the loss is nonrecurring. d. Relates to the step-up in inventory recorded for Allkem Livent Merger for the three and six months ended June 30, 2024 as a result of purchase accounting, excluded from Adjusted EBITDA as the step-up is considered a one-time, non-recurring cost. e. The three and six months ended June 30, 2024 primarily represents foreign currency remeasurement gains related to U.S. dollar-denominated cash balances temporarily held at a foreign currency-functional subsidiary. The three and six months ended June 30, 2023, prior to consolidation of Nemaska Lithium Inc. ("NLI") on October 18, 2023, represents our 50% ownership interest in costs incurred for certain project-related costs to align NLI's reported results with Arcadium's capitalization policies and interest expense incurred by NLI, all included in Equity in net loss of unconsolidated affiliate in our condensed consolidated statements of operations. The Company consolidates NLI on a one-quarter lag basis and prior to October 18, 2023, accounted for its equity method investment in NLI on a one-quarter lag basis. f. Represents non-recurring gain from the sale in Argentina pesos of Argentina Sovereign U.S. dollar-denominated bonds due to the divergence of Argentina's Blue Chip Swap market exchange rate from the official rate. RECONCILIATION OF NET INCOME ATTRIBUTABLE TO ARCADIUM LITHIUM PLC (GAAP) TO ADJUSTED AFTER-TAX EARNINGS (NON-GAAP) (Unaudited) (in Millions, Except Per Share Data) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 (1) 2024 2023 (1) Net income attributable to Arcadium Lithium plc $ 85.7 $ 90.2 $ 101.3 $ 205.0 Add back: Net income attributable to noncontrolling interests 8.8 — 13.1 — Special charges: Argentina remeasurement (gains)/losses (a) (57.6) 4.8 (96.2) 8.9 Restructuring and other charges (b) 21.9 24.3 101.7 26.3 Loss on debt extinguishment (c) 0.9 — 1.1 — Inventory step-up, Allkem Livent Merger (d) 4.7 — 20.5 — Other losses/(gains) (e) 1.2 5.0 (7.4) 10.8 Blue Chip Swap gain (f) (16.8) (11.4) (36.5) (11.4) Non-GAAP tax adjustments (g) 10.1 (5.6) 38.3 (6.3) Adjusted after-tax earnings (Non-GAAP) (2) $ 58.9 $ 107.3 $ 135.9 $ 233.3 Diluted earnings per ordinary share (GAAP) $ 0.07 $ 0.18 $ 0.09 $ 0.41 Special charges per diluted share, before tax: Argentina remeasurement (gains)/losses, per diluted share (0.05) 0.01 (0.08) 0.02 Restructuring and other charges, per diluted share 0.02 0.05 0.09 0.05 Inventory step-up, Allkem Livent Merger, per diluted share — — 0.02 — Other losses/(gains), per diluted share — 0.01 (0.01) 0.02 Blue Chip Swap gain, per diluted share (0.01) (0.03) (0.02) (0.03) Non-GAAP tax adjustments, per diluted share 0.02 (0.01) 0.03 (0.01) Diluted adjusted after-tax earnings per share (Non-GAAP) (2) $ 0.05 $ 0.21 $ 0.12 $ 0.46 Weighted average ordinary shares outstanding - diluted (Non-GAAP) used in diluted adjusted after-tax earnings per share computations 1,143.5 503.9 1,132.9 503.7 1. For the three and six months ended June 30, 2023, diluted earnings per ordinary share (GAAP), weighted average ordinary shares outstanding - diluted (Non-GAAP) and all per diluted share amounts represent predecessor Livent and have been adjusted to reflect the 2.406 Exchange Ratio. Represents the results of predecessor Livent's operations for three and six months ended June 30, 2023 which do not include the operations of Allkem. 2. The Company believes that the Non-GAAP financial measures Adjusted after-tax earnings and Diluted adjusted after-tax earnings per share provide useful information about the Company's operating results to management, investors and securities analysts. Adjusted after-tax earnings excludes the effects of, nonrecurring charges/(income) and tax-related adjustments. The Company also believes that excluding the effects of these items from operating results allows management and investors to compare more easily the financial performance of its underlying business from period to period. Diluted adjusted after-tax earnings per share (Non-GAAP) is calculated using weighted average common shares outstanding - diluted. a. Represents impact of currency fluctuations primarily on deferred income tax assets and liabilities. Also includes impact of currency fluctuations on other tax assets and liabilities and on long-term monetary assets associated with our capital expansion as well as foreign currency devaluations. The remeasurement losses are included within Other gains in our condensed consolidated statements of operations but are excluded from our calculation of Adjusted EBITDA because of: i.) their nature as income tax related; ii.) their association with long-term capital projects which will not be operational until future periods; or iii.) the severity of the devaluations and their immediate impact on our operations in the country. b. We continually perform strategic reviews and assess the return on our business. This sometimes results in management changes or in a plan to restructure the operations of our business. As part of these restructuring plans, demolition costs and write-downs of long-lived assets may occur. The three months ended June 30, 2024 and 2023 include costs related to the Transaction of $19.8 million and $18.8 million, respectively. The six months ended June 30, 2024 and 2023 include costs related to the Transaction of $86.8 million and $18.8 million, respectively. The six months ended June 30, 2024 and 2023 include severance-related costs of $14.1 million and $2.4 million, respectively. c. The three months ended June 30, 2024 represents a prepayment fee incurred when the Sal de Vida Project Financing Facility was repaid in its entirety by SDJ SA on May 30, 2024. The six months ended June 30, 2024 also includes $0.2 million for the partial write-off of deferred financing costs for amendments to the Revolving Credit Facility. The debt extinguishment losses are excluded from our calculation of Adjusted EBITDA because the loss is nonrecurring. d. Relates to the step-up in inventory recorded for Allkem Livent Merger for the three and six months ended June 30, 2024 as a result of purchase accounting, excluded from Adjusted EBITDA as the step-up is considered a one-time, non-recurring cost. e. The three and six months ended June 30, 2024 primarily represents foreign currency remeasurement gains related to U.S. dollar-denominated cash balances temporarily held at a foreign currency-functional subsidiary. The three and six months ended June 30, 2023, prior to consolidation of Nemaska Lithium Inc. ("NLI") on October 18, 2023, represents our 50% ownership interest in costs incurred for certain project-related costs to align NLI's reported results with Arcadium's capitalization policies and interest expense incurred by NLI, all included in Equity in net loss of unconsolidated affiliate in our condensed consolidated statements of operations. The Company consolidates NLI on a one-quarter lag basis and prior to October 18, 2023, accounted for its equity method investment in NLI on a one-quarter lag basis. f. Represents non-recurring gain from the sale in Argentina pesos of Argentina Sovereign U.S. dollar-denominated bonds due to the divergence of Argentina's Blue Chip Swap market exchange rate from the official rate. g. The company excludes the GAAP tax provision, including discrete items, from the Non-GAAP measure Diluted adjusted after-tax earnings per share, and instead includes a Non-GAAP tax provision based upon the annual Non-GAAP effective tax rate. The GAAP tax provision includes certain discrete tax items including, but not limited to: income tax expenses or benefits that are not related to operating results in the current year; tax adjustments associated with fluctuations in foreign currency remeasurement of certain foreign operations; certain changes in estimates of tax matters related to prior fiscal years; certain changes in the realizability of deferred tax assets and related accounting impacts; and changes in tax law. Management believes excluding these discrete tax items assists investors and securities analysts in understanding the tax provision and the effective tax rate related to operating results thereby providing investors with useful supplemental information about the company's operational performance. The income tax expense/(benefit) on special charges/(income) is determined using the applicable rates in the taxing jurisdictions in which the special charge or income occurred and includes both current and deferred income tax expense/(benefit) based on the nature of the Non-GAAP performance measure. Three Months Ended June 30, Six Months Ended June 30, (in Millions) 2024 2023 2024 2023 Non-GAAP tax adjustments: Income tax benefit on restructuring and other charges and other corporate costs $ (5.9) $ (2.3) $ (23.4) $ (2.8) Revisions to our tax liabilities due to finalization of prior year tax returns 0.2 (0.1) 1.2 (0.1) Foreign currency remeasurement (net of valuation allowance) and other discrete items 9.6 (4.3) 47.9 (3.1) Blue Chip Swap gain 4.6 1.2 9.2 1.2 Other discrete items 1.6 (0.1) 3.4 (1.5) Total Non-GAAP tax adjustments $ 10.1 $ (5.6) $ 38.3 $ (6.3) RECONCILIATION OF CASH (USED IN)/PROVIDED BY OPERATING ACTIVITIES (GAAP) TO ADJUSTED CASH PROVIDED BY OPERATIONS (NON-GAAP) (Unaudited) Six Months Ended June 30, (in Millions) 2024 2023 (1) Cash (used in)/provided by operating activities (GAAP) $ (119.7) $ 181.6 Restructuring and other charges 145.1 10.4 Adjusted cash provided by operations (Non-GAAP) (2) $ 25.4 $ 192.0 1. Represents the results of predecessor Livent's operations for six months ended June 30, 2023 which do not include the operations of Allkem. 2. The Company believes that the Non-GAAP financial measure Adjusted cash provided by operations provides useful information about the Company's cash flows to investors and securities analysts. Adjusted cash provided by operations excludes the effects of transaction-related cash flows. The Company also believes that excluding the effects of these items from cash (used in)/provided by operating activities allows management and investors to compare more easily the cash flows from period to period. RECONCILIATION OF LONG-TERM DEBT (GAAP) AND CASH AND CASH EQUIVALENTS (GAAP) TO NET DEBT (NON-GAAP) (Unaudited) (in Millions) June 30, 2024 December 31, 2023 (1) Long-term debt (including current maturities) (GAAP) (a) $ 634.0 $ 302.0 Less: Cash and cash equivalents (GAAP) (380.4) (237.6) Net debt (Non-GAAP) (2) $ 253.6 $ 64.4 1. Represents the financial position of predecessor Livent as of December 31, 2023, which does not include the financial position of Allkem. 2. The Company believes that the Non-GAAP financial measure Net debt provides useful information about the Company's cash flows and liquidity to investors and securities analysts. a. Presented net of unamortized discounts of $74.4 million and $22.2 million as of June 30, 2024 and December 31, 2023, respectively. RECONCILIATION OF CASH AND CASH EQUIVALENTS (GAAP) TO ADJUSTED CASH AND DEPOSITS (NON-GAAP) The following table provides a reconciliation of Arcadium Lithium's Cash and cash equivalents (GAAP) to Adjusted cash and deposits (Non-GAAP), on an unaudited basis for illustrative purposes. We define Adjusted cash and deposits (Non-GAAP) as Cash and cash equivalents, plus restricted cash in Other non-current assets, less Nemaska Lithium Cash and cash equivalents consolidated by Arcadium on a one-quarter lag, plus Nemaska Lithium Cash and cash equivalents not on a one-quarter lag. Our management believes that this measure provides useful information about the Company's balances and liquidity to investors and securities analysts. Such measure may not be comparable to similar measures disclosed by other companies because of differing methods used by other companies in calculating Adjusted cash and deposits. These measures should not be considered as a substitute for Cash and cash equivalents or other measures of liquidity reported in accordance with U.S. GAAP. June 30, 2024 December 31, 2023 (1) (in Millions) (unaudited) 1 Arcadium Lithium Cash and cash equivalents (GAAP) $ 380.4 $ 237.6 Allkem Cash and cash equivalents — 681.4 Add: Restricted cash in Other non-current assets: Project Loan Facility guarantee - Stage 2 of Olaroz Plant (SDJ SA) 24.6 24.6 Project Financing Facility guarantee - Sal de Vida (SDV SA) 2 — 32.5 Other 5.0 5.0 Less: Nemaska Lithium Cash and cash equivalents as of March 31, 2024 and October 18, 2023, respectively, consolidated by Arcadium on a one-quarter lag (149.7) (133.5) Arcadium Lithium, excluding Nemaska Lithium (3) 260.3 847.6 Nemaska Lithium Cash and cash equivalents not on a one-quarter lag (4) 41.3 44.2 Adjusted cash and deposits (Non-GAAP) 3 $ 301.6 $ 891.8 1. This unaudited information of the combined company as of December 31, 2023 is for illustrative purposes and was derived from the historical consolidated financial information of Livent, Allkem and Nemaska Lithium. 2. On May 30, 2024, SDV SA paid the outstanding principal balance of $47.0 million, a prepayment fee of $0.9 million and accrued interest and commitment fees of $1.3 million to repay the Project Financing Facility in its entirety. 3. $137.6 million and $176.9 million reserved or restricted at June 30, 2024 and December 31, 2023, respectively, to provide collateral or cash backing for guarantees primarily on Allkem debt facilities, including $29.6 million and $62.1 million at June 30, 2024 and December 31, 2023, respectively, in Other non-current assets in our condensed consolidated balance sheet. 4. The presentation reflects NLI's actual balance at that date, not on a one-quarter lag. This differs from Nemaska Lithium Cash and cash equivalents included in Arcadium Lithium's condensed consolidated balance sheet as of June 30, 2024 of $149.7 million, representing NLI's balance as of March 31, 2024 as we consolidate NLI on a one-quarter lag. On March 28, 2024, Nemaska Lithium received cash of $150 million related to a second advance payment in connection with a customer supply agreement repayable in equal quarterly installments beginning in January 2027 and ending in October 2031. ARCADIUM LITHIUM PLC CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (in Millions) June 30, 2024 December 31, 2023 (1) Cash and cash equivalents $ 380.4 $ 237.6 Trade receivables, net of allowance of approximately $0.1 in 2024 and $0.3 in 2023 94.1 106.7 Inventories 333.1 217.5 Other current assets 264.0 86.4 Total current assets 1,071.6 648.2 Investments 38.2 34.8 Property, plant and equipment, net of accumulated depreciation of $307.8 in 2024 and $269.1 in 2023 7,034.9 2,237.1 Right of use assets - operating leases, net 53.7 6.8 Goodwill 1,300.3 120.7 Other intangibles, net 56.6 53.4 Deferred income taxes 32.7 1.4 Other assets 342.3 127.7 Total assets $ 9,930.3 $ 3,230.1 Total current liabilities 473.8 268.6 Long-term debt 590.6 299.6 Contract liabilities - long-term 253.8 217.8 Other long-term liabilities 1,522.5 160.3 Total Arcadium Lithium plc shareholders' equity 6,262.8 1,784.2 Noncontrolling interests 826.8 499.6 Total liabilities and equity $ 9,930.3 $ 3,230.1 1. Represents the financial position of predecessor Livent as of December 31, 2023, which does not include the financial position of Allkem. ARCADIUM LITHIUM PLC CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Six Months Ended June 30, (in Millions) 2024 2023 (1) Cash (used in)/provided by operating activities $ (119.7) $ 181.6 Cash provided by/(used in) investing activities 158.4 (180.2) Cash provided by/(used in) financing activities 119.6 (21.6) Effect of exchange rate changes on cash (15.5) (1.0) Increase/(decrease) in cash and cash equivalents 142.8 (21.2) Cash and cash equivalents, beginning of period 237.6 189.0 Cash and cash equivalents, end of period $ 380.4 $ 167.8 1. Represents the results of predecessor Livent's operations for three months ended March 31, 2023 which do not include the operations of Allkem. ARCADIUM LITHIUM PLC LONG-TERM DEBT (Unaudited) Interest Rate Percentage Maturity Date June 30, 2024 December 31, 2023(1) (in Millions) SOFR borrowings Base rate borrowings Revolving Credit Facility 7.19 % 9.25 % 2027 $ — $ — 4.125% Convertible Senior Notes due 2025 4.125 % 2025 245.8 245.8 Transaction costs - 2025 Notes (1.6) (2.4) Nemaska - Prepayment agreement - tranche 1 8.9 % 75.0 75.0 Discount - Prepayment agreement (19.4) (19.8) Nemaska - Prepayment agreement - tranche 2 9.4 % 150.0 — Discount - Prepayment agreement (53.4) — Nemaska - Other 0.5 3.4 Debt assumed in Allkem Livent Merger (2) Project Loan Facility - Stage 1 of Olaroz Plant 4.90 % 2024 9.1 — Project Loan Facility - Stage 2 of Olaroz Plant 2.61 % 2029 144.0 — Affiliate Loans with TTC 15.25 % 2030 81.5 — Affiliate Loan with TLP 10.34 % 2026 2.5 — Total debt assumed in Allkem Livent Merger 237.1 — Subtotal long-term debt (including current maturities) 634.0 302.0 Less current maturities (43.4) (2.4) Total long-term debt $ 590.6 $ 299.6 1. Represents the financial position of predecessor Livent as of December 31, 2023, which does not include the financial position of Allkem. 2. On May 30, 2024, SDV SA paid the outstanding principal balance of $47.0 million, a prepayment fee of $0.9 million and accrued interest and commitment fees of $1.3 million to repay the Project Financing Facility in its entirety. Logo - https://mma.prnasia.com/media2/2310012/Arcadium_Lithium_Horizontal_Logo.jpg?p=medium600
Highlights (second-quarter 2024 versus second-quarter 2023, unless otherwise noted): Reported revenues of $5.3 billion, up 13 percent; organic revenues* up 13 percent GAAP operating margin up 70 bps; adjusted operating margin* up 140 bps Adjusted EBITDA margin* of 21.1 percent, up 140 bps GAAP continuing EPS of $3.33; adjusted continuing EPS* of $3.30, up 23 percent Bookings* up 19 percent, led by Americas Commercial HVAC, up 21 percent *This news release contains non-GAAP financial measures. Definitions of the non-GAAP financial measures can be found in the footnotes of this news release. See attached tables for additional details and reconciliations. SWORDS, Ireland, Aug. 2, 2024 /PRNewswire/ -- Trane Technologies plc (NYSE:TT), a global climate innovator, today reported diluted earnings per share (EPS) from continuing operations of $3.33 for the second quarter of 2024. Adjusted continuing EPS was $3.30, up 23 percent. Second-Quarter 2024 Results Financial Comparisons - Second-Quarter Continuing Operations $, millions except EPS Q2 2024 Q2 2023 Y-O-Y Organic Y-O-Y Change Change Bookings $5,340 $4,495 19 % 19 % Net Revenues $5,307 $4,705 13 % 13 % GAAP Operating Income $1,034 $885 17 % GAAP Operating Margin 19.5 % 18.8 % 70 bps Adjusted Operating Income* $1,027 $849 21 % Adjusted Operating Margin* 19.4 % 18.0 % 140 bps Adjusted EBITDA* $1,119 $927 21 % Adjusted EBITDA Margin* 21.1 % 19.7 % 140 bps GAAP Continuing EPS $3.33 $2.57 30 % Adjusted Continuing EPS $3.30 $2.68 23 % Pre-Tax Non-GAAP Adjustments, net** $(7.1) $15.3 $(22.4) **For details see table 2 and 3 of the news release. "Our team around the world delivered strong performance in the second quarter, continuing our consistent track record of execution," said Dave Regnery, chair and CEO, Trane Technologies. "Customers continue to choose our sustainable solutions, demonstrated by our exceptional bookings growth and backlog - giving us good visibility for 2024 and into 2025. Given our strong first half performance and positive outlook, we are raising our full-year revenue and adjusted EPS guidance well above the high end of our prior range. With our purpose-driven strategy, proven business operating system and uplifting culture, we are well positioned to continue delivering leading growth among industrials and differentiated shareholder returns over the long term." Highlights from the Second Quarter of 2024 (all comparisons against second-quarter 2023 unless otherwise noted) Delivered strong revenue, operating income, EBITDA and EPS growth. Strong bookings of $5.3 billion, up 19 percent. Backlog of $7.5 billion, including approximately $2.8 billion of Commercial HVAC backlog for 2025 and beyond, with $1 billion added in the second quarter. Enterprise reported revenues and organic revenues were both up 13 percent. Approximately 1 percentage point related to acquisitions was offset by 1 percentage point of negative foreign exchange impact. GAAP operating margin was up 70 basis points, adjusted operating margin was up 140 basis points and adjusted EBITDA margin was up 140 basis points. Strong volume growth, positive price realization and productivity more than offset inflation. The Company also continued high levels of business reinvestment. Second-Quarter Business Review (all comparisons against second-quarter 2023 unless otherwise noted) Americas Segment: innovates for customers in the North America and Latin America regions. The Americas segment encompasses commercial heating, cooling and ventilation systems, building controls and solutions, energy services and solutions, residential heating and cooling; and transport refrigeration systems and solutions. $, millions Q2 2024 Q2 2023 Y-O-Y Change Organic Y-O-Y Change Bookings $4,221.9 $3,422.9 23 % 23 % Net Revenues $4,290.9 $3,692.5 16 % 16 % GAAP Operating Income $912.1 $783.1 16 % GAAP Operating Margin 21.3 % 21.2 % 10 bps Adjusted Operating Income $903.9 $732.6 23 % Adjusted Operating Margin 21.1 % 19.8 % 130 bps Adjusted EBITDA $978.2 $791.3 24 % Adjusted EBITDA Margin 22.8 % 21.4 % 140 bps Strong bookings of $4.2 billion, up 23 percent, led by Commercial HVAC, up more than 20 percent. Reported and organic revenues were both up 16 percent. GAAP operating margin was up 10 basis points, adjusted operating margin was up 130 basis points and adjusted EBITDA margin was up 140 basis points. Strong volume growth, positive price realization and productivity more than offset inflation. The Company also continued high levels of business reinvestment. Europe, Middle East and Africa (EMEA) Segment: innovates for customers in the Europe, Middle East and Africa region. The EMEA segment encompasses heating, cooling and ventilation systems, services and solutions for commercial buildings and transport refrigeration systems and solutions. $, millions Q2 2024 Q2 2023 Y-O-Y Change Organic Y-O-Y Change Bookings $669.4 $610.0 10 % 10 % Net Revenues $645.3 $617.6 4 % 5 % GAAP Operating Income $120.7 $101.1 19 % GAAP Operating Margin 18.7 % 16.4 % 230 bps Adjusted Operating Income $121.0 $108.0 12 % Adjusted Operating Margin 18.8 % 17.5 % 130 bps Adjusted EBITDA $131.0 $117.8 11 % Adjusted EBITDA Margin 20.3 % 19.1 % 120 bps Bookings were up 10 percent, led by Commercial HVAC, up 20 percent. Reported revenues were up 4 percent, including approximately 1 percentage point related to acquisitions offset by 2 percentage points of negative foreign exchange impact. Organic revenues were up 5 percent. GAAP operating margin was up 230 basis points; adjusted operating margin was up 130 basis points and adjusted EBITDA margin was up 120 basis points. Strong volume growth, positive price realization and productivity more than offset inflation. The Company also continued high levels of business reinvestment. Asia Pacific Segment: innovates for customers throughout the Asia Pacific region. The Asia Pacific segment encompasses heating, cooling and ventilation systems, services and solutions for commercial buildings and transport refrigeration systems and solutions. $, millions Q2 2024 Q2 2023 Y-O-Y Change Organic Y-O-Y Change Bookings $448.8 $461.9 (3) % flat Net Revenues $371.2 $394.6 (6) % (3) % GAAP Operating Income $89.3 $82.3 9 % GAAP Operating Margin 24.1 % 20.9 % 320 bps Adjusted Operating Income $89.3 $82.7 8 % Adjusted Operating Margin 24.1 % 21.0 % 310 bps Adjusted EBITDA $94.8 $86.6 9 % Adjusted EBITDA Margin 25.5 % 21.9 % 360 bps Organic bookings were flat. Reported revenues were down 6 percent, including approximately 3 percentage points of negative foreign exchange impact. Organic revenues were down 3 percent. GAAP operating margin was up 320 basis points, adjusted operating margin was up 310 basis points and adjusted EBITDA margin was up 360 basis points. Positive price realization and productivity more than offset inflation. The Company also continued high levels of business reinvestment. Balance Sheet and Cash Flow $, millions Q2 2024 Q2 2023 Y-O-Y Change Cash From Continuing Operating Activities Y-T-D $959 $548 $411 Free Cash Flow Y-T-D* $810 $427 $383 Working Capital/Revenue* 4.2 % 6.3 % (210) bps Cash Balance June 30** $1,326 $664 $662 Debt Balance June 30 $5,268 $5,027 $241 **Includes short-term investments of $451 million. Through June 30, 2024, cash flow from continuing operating activities was $959 million and free cash flow was $810 million. Year-to-date through July, the Company deployed or committed approximately $1.2 billion of capital including $379 million for dividends, approximately $100 million for M&A and $731 million for share repurchases. The Company expects to continue to pay a competitive and growing dividend and to deploy 100 percent of excess cash to shareholders over time. Raising Full-Year 2024 Revenue and EPS Guidance The Company expects full-year reported and organic revenue growth of approximately 10 percent; reported revenue growth includes approximately 1 percentage point of M&A offset by approximately 1 percentage point of negative foreign exchange. The Company expects GAAP and adjusted continuing EPS for full-year 2024 of approximately $10.80. Additional information regarding the Company's 2024 guidance is included in the Company's second-quarter earnings presentation found at www.tranetechnologies.com in the Investor Relations section. This news release includes "forward-looking" statements within the meaning of securities laws, which are statements that are not historical facts, including statements that relate to our future financial performance and targets, including revenue, EPS, and earnings; our business operations; demand for our products and services, including bookings and backlog; capital deployment, including the amount and timing of our dividends, our share repurchase program, anticipated capital commitments for M&A activity, and our capital allocation strategy; our available liquidity; our anticipated revenue growth, and the performance of the markets in which we operate. These forward-looking statements are based on our current expectations and are subject to risks and uncertainties, which may cause actual results to differ materially from our current expectations. Such factors include, but are not limited to, global economic conditions, including recessions and economic downturns, inflation, volatility in interest rates and foreign exchange; changing energy prices; national and international conflict; impacts of global health crises, epidemics, pandemics, or other contagious outbreaks on our business operations, financial results and financial position and on the world economy; financial institution disruptions; climate change and our sustainability strategies and goals; commodity shortages; supply chain constraints and price increases; government regulation; restructurings activity and cost savings associated with such activity; secular trends toward decarbonization, energy efficiency and internal air quality, the outcome of any litigation, including the risks and uncertainties associated with the Chapter 11 proceedings for our deconsolidated subsidiaries Aldrich Pump LLC and Murray Boiler LLC; cybersecurity risks; and tax audits and tax law changes and interpretations. Additional factors that could cause such differences can be found in our Form 10-K for the year ended December 31, 2023, as well as our subsequent reports on Form 10-Q and other SEC filings. New risks and uncertainties arise from time to time, and it is impossible for us to predict these events and how they may affect the Company. We assume no obligation to update these forward-looking statements. This news release also includes non-GAAP financial information, which should be considered supplemental to, not a substitute for, or superior to, the financial measure calculated in accordance with GAAP. The definitions of our non-GAAP financial information and reconciliation to GAAP are attached to this news release. All amounts reported within the earnings release above related to net earnings (loss), earnings (loss) from continuing operations, earnings (loss) from discontinued operations, adjusted EBITDA and per share amounts are attributed to Trane Technologies' ordinary shareholders. Trane Technologies (NYSE:TT) is a global climate innovator. Through our strategic brands Trane® and Thermo King®, and our portfolio of environmentally responsible products and services, we bring efficient and sustainable climate solutions to buildings, homes and transportation. For more information, visit tranetechnologies.com. 7/31/2024 (See Accompanying Tables) Table 1: Condensed Consolidated Income Statement Tables 2 - 5: Reconciliation of GAAP to Non-GAAP Table 6: Condensed Consolidated Balance Sheets Table 7: Condensed Consolidated Statement of Cash Flows Table 8: Balance Sheet Metrics and Free Cash Flow
CAMBRIDGE, Mass., ROTTERDAM, Netherlands and SUZHOU, China, July 19, 2024 /PRNewswire/ -- Harbour BioMed (the "Company"; HKEX: 02142), a global biopharmaceutical company committed to the discovery, development, and commercialization of novel antibody therapeutics focusing on oncology and immunology, today announced a positive profit alert for the six months ended June 30, 2024 (the "Reporting Period"). Based on a preliminary review of the Company's unaudited consolidated management accounts for the Reporting Period, total profit is expected to be between US$1 million and US$1.5 million, compared to approximately US$2.9 million for the six months ended June 30, 2023 (the "HY2023"). The anticipated decrease in profit for the Reporting Period is mainly due to a change in the revenue structure. Specifically, the proportion of fees received from the service business as a percentage of total revenue during the Reporting Period has increased compared to HY2023. However, this type of revenue has a relatively slim profit margin compared to the licensing revenue, which constituted a larger proportion of the revenue in HY2023. As a result, the overall profit for the Reporting Period has decreased. Despite the anticipated decrease in profit for the Reporting Period compared to HY2023, the Company emphasizes that it expects to maintain an overall profit for the Reporting Period. This optimistic outlook is primarily attributable to: A stable source of income and a diverse revenue mix. The milestone payments received from existing out-licensing and collaboration of innovative products from the Company's portfolio contributed significantly to the revenue for the Reporting Period. Various new Licensing and Collaboration Agreements centered on innovative products and cutting-edge antibody discovery technology. Consistent enhanced cost control in business operations. Dr. Jingsong Wang, Founder, Chairman and CEO of Harbour BioMed, commented: "Our business has shown remarkable resilience and adaptability in challenging market conditions, and our global operations continue to open new avenues for future growth. By leveraging Harbour BioMed's core innovative capabilities, we are confident that we can enhance our value creation worldwide." About Harbour BioMed Harbour BioMed (HKEX: 02142) is a global biopharmaceutical company committed to the discovery, development, and commercialization of novel antibody therapeutics focusing on immunology and oncology. The Company is building its robust portfolio and differentiated pipeline through internal R&D capability, collaborations with co-discovery and co-development partners, and select acquisitions. The proprietary antibody technology platforms Harbour Mice® generates fully human monoclonal antibodies in two heavy and two light chains (H2L2) format, as well as heavy chain only (HCAb) format. Building upon the HCAb antibodies, the HCAb-based immune cell engagers (HBICE®) bispecific antibody technology is capable of delivering tumor-killing effects unachievable by traditional combination therapies. Integrating Harbour Mice®, and HBICE® with a single B cell cloning platform, our antibody discovery engine is highly unique and efficient for the development of next-generation therapeutic antibodies. For further information, please refer to www.harbourbiomed.com. Statement The information contained in this press release is only a preliminary assessment by the Board based on the unaudited consolidated management accounts of the Company and its subsidiaries for the six months ended June 30, 2024 currently available to the Company, and is not based on any figures or information which have been reviewed or confirmed by the audit committee of the Board, or reviewed or audited by the auditors of the Company. The actual results for the six months ended June 30, 2024 may differ from those disclosed in this press release. As such, the above figures are strictly for information only and not for any other purposes.
VICTORIA, Seychelles, July 11, 2024 /PRNewswire/ -- Bitget, the leading cryptocurrency exchange and Web3 company, has released the quarterly transparency report for Q2 2024 showcasing the company's progress in the year so far. Q2 2024, Bitget experienced a substantial increase in website traffic, seeing a nearly 50% rise, which brought in a surge of 10M monthly visitors. Bitget Q2 Report Highlights $700M Capital Inflow and nearly 50% Rise in Traffic The exchange's inflow of funds increased. Data from the Bitget Proof-of-Reserve (PoR) page indicates that in the first 6 months, the amount of users' BTC, USDT, and ETH surged by 73%, 80%, and 153% respectively, equaling approximately $700 million in capital inflow. The growth was complemented by the addition of 2.9 million new users to the platform, aligning with its expanding reach and world-class crypto trading solutions. The spot trading volume on Bitget increased by over 10%, from $28B in Q1 to $32B in Q2. Bitget continued to innovate with the launch of two new initial token listing products, PoolX and Pre-market. PoolX introduced a new staking platform allowing users to earn tokens by staking BGB and USDT, while Pre-market enabled trading for tokens not yet officially listed on major exchanges. These products saw the launch of a combined total of 100+ projects, providing more high-potential offerings and attracting significant user participation. In June BGB recorded tremendous growth as the best-performing CEX token. BGB was also ranked in the Top 10 cryptocurrencies by Forbes recently. Additionally, CCData's latest H2 Outlook Report projected that Bitget had the largest market share growth amongst CEXs amounting to 38.4% from H2 2023 to H1 2024, while most other counterparts experienced a slight drop. A major highlight of the quarter was the partnership with three Turkish national athletes – Buse Tosun Çavuşoğlu (Wrestling), Samet Gümüş (Boxing), and İlkin Aydın (Volleyball) – as part of the #MakeItCount Lionel Messi campaign. The athletes, embodying perseverance and passion represented the campaign's essence, aiming to motivate audiences to achieve new heights and make lasting impacts. This move was also a part of Bitget's rapid expansion in Turkey. In collaboration with Foresight Ventures, Bitget also launched a $20M TON Ecosystem Fund to support early-stage projects building on The Open Network (TON). This initiative was to accelerate innovation and development within the TON ecosystem, aligning with the broader goal of driving mass adoption of crypto at Bitget. "Q2 2024 has been a pivotal period for Bitget. Our collaboration with Turkish athletes along with significant growth in users and website traffic is a part of our global expansion. We appreciate our community's support and will continue to build for the future of Web3," said Gracy Chen, CEO of Bitget. The exchange continues to maintain its proof-of-reserves, with the latest report highlighting reserve ratios well above 100% for all major assets. Additionally, Bitget's Protection Fund, now valued at approximately $420M+, stands as one of the largest in the industry, providing an extra layer of security for users. In addition to this, Bitget Research put out a report which spoke about how deepfake crypto crimes may account for 70% of all crypto crimes, while it's also planning to run an anti-scam campaign in Vietnam. Along with this, Bitget also partnered up with Sumsub to bring tighter security for its 25M users. As Bitget looks ahead to Q3 2024, the platform remains focused on enhancing its ecosystem, delivering value to its users, and supporting the broader growth of the crypto industry. With continued innovation, strategic partnerships, and strong layers of security, Bitget closed its last quarter, reaching new positive milestones. To read in-depth on Bitget's Q2 performance, tap into the report here. About Bitget Established in 2018, Bitget is the world's leading cryptocurrency exchange and Web3 company. Serving over 25 million users in 100+ countries and regions, the Bitget exchange is committed to helping users trade smarter with its pioneering copy trading feature and other trading solutions. Formerly known as BitKeep, Bitget Wallet is a world-class multi-chain crypto wallet that offers an array of comprehensive Web3 solutions and features including wallet functionality, swap, NFT Marketplace, DApp browser, and more. Bitget inspires individuals to embrace crypto through collaborations with credible partners, including legendary Argentinian footballer Lionel Messi and Turkish National athletes Buse Tosun Çavuşoğlu (Wrestling world champion), Samet Gümüş (Boxing gold medalist) and İlkin Aydın (Volleyball national team). For more information, visit: Website | Twitter | Telegram | LinkedIn | Discord | Bitget Wallet
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