Cailianshe reported on October 24th (Reporter: Liu Yue) that Sealand's stock price surged, boosting the fair value change income, and Guangxi Energy (600310.SH) saw its net profit in Q3 increase by over 20 times year-on-year. However, due to the recent divestment of the oil business at the end of the previous year, the company's Q3 and the first three quarters' revenue both dropped by about 80% year-on-year.

Specifically, Guangxi Energy's quarterly report released in the evening showed that the company achieved an operating income of 0.998 billion yuan in the third quarter, a 76.75% year-on-year decrease; attributable net profit was 0.438 billion yuan, a 2345.63% year-on-year increase. The company's revenue for the first three quarters was 2.917 billion yuan, down 80.27% year-on-year; net profit was 0.45 billion yuan, a 1987.94% year-on-year increase.

Guangxi Energy stated in the announcement that the decrease in revenue in the third quarter and the first three quarters was mainly due to the significant oil business revenue in the same period of the previous year. After divesting this business at the end of the previous year, there was no oil business revenue in the current period.

The net profit growth was mainly attributed to three reasons: first, the increase in gains and losses from other non-current financial assets measured at fair value held by the company; second, the increase in profits from hydropower plant watershed inflows, and third, an increase in self-generated power compared to the previous year, leading to reduced purchased power costs and increased profits from electricity sales business.

It is worth noting that Guangxi Energy's Q3 fair value change income was mainly boosted by the significant rise in Sealand's stock price during the period. Public information shows that Guangxi Energy holds 0.206 billion shares of Sealand, with Guangxi Energy Group holding indirect shares through the company. Choice data shows that Sealand's stock price surged by approximately 70% in Q3 this year.

According to the financial report, Guangxi Energy's Q3 fair value change income was 0.406 billion yuan, and the fair value change income for the first three quarters was 0.277 billion yuan. Among them, the fair value change of Guangxi Energy's holding of Sealand's stock was 0.266 billion yuan, with a dividend of 9.4749 million yuan; and the fair value change of Global New Mat's stock was 11.1125 million yuan.

The fluctuations in the stock prices of Sealand and Global New Mat have impacted the company's investment income. Due to significant stock price fluctuations, the company has also seen notable changes in fair value net income over the past few years. The financial report shows that the fair value net income from 2021 to 2023 was 0.115 billion, -0.448 billion, and 0.051 billion yuan, respectively.

To focus on the development of the electrical utilities main business, the company announced plans to sell all the stocks of global new mat it holds. Guangxi Energy indicated that as of July 31, 2024, the company's holding cost of global new mat stocks was 0.143 billion yuan. Selling the company's holdings of global new mat stocks can lock in investment income to provide funding support for expanding new energy projects.

Guangxi Energy is the only listed platform under Guangxi Energy Group. Looking at the company business data, the third quarterly report shows that from July to September 2024, the company generated 1.717 billion kilowatt-hours of electricity, an 8.98% year-on-year increase; achieved a sales volume of 2.239 billion kilowatt-hours, a 1.00% year-on-year decrease. From January to September 2024, the company accumulated a generated electricity amount of 5.001 billion kilowatt-hours, an 11.25% year-on-year increase; achieved a sales volume of 6.424 billion kilowatt-hours, a 3.83% year-on-year increase.