CALB Group Co (3931) H1 2024 earnings summary

Executive summary

• Revenue for the first half of 2024 rose 1.4% year-over-year to RMB12,469 million, driven by increased production capacity and ESS product growth.

• Net profit surged 56.6% year-over-year to RMB417 million, with basic EPS up 69.9% to RMB0.1405.

• Gross profit margin improved to 15.6% from 9.6% a year earlier, and net sales margin increased to 3.3% from 2.2%.

• Significant growth in energy storage system (ESS) products offset a decline in EV battery revenue due to lower prices despite higher volumes.

• The company maintained its position as a leading EV battery supplier, securing the world's largest energy storage battery order and expanding internationally.

Financial highlights

• Revenue: RMB12,469 million (+1.4% YoY); Net profit: RMB417 million (+56.6% YoY).

• Gross profit: RMB1,948 million (up from RMB1,179 million YoY).

• EV battery revenue fell 6.3% YoY to RMB9,724 million due to price declines, while ESS product revenue rose 43.2% YoY to RMB2,745 million.

• Operating cash inflow reached RMB1,255 million, reversing a prior outflow.

• Bank and cash balances stood at RMB10,865 million as of June 30, 2024; total borrowings: RMB37,515 million.

Outlook and guidance

• Focus on technological innovation, advanced materials, and manufacturing to maintain product leadership.

• Plans to expand international production, especially in Europe and ASEAN, with a new Portugal plant progressing and deeper strategic partnerships.

• Targeting further growth in energy storage shipments and deeper cooperation with major power enterprises.

• Aims to diversify customer base and vehicle models in both domestic and international markets.

• Continued growth expected in energy storage and commercial vehicle segments, leveraging favorable policies and market demand.