Chongqing Machinery & Electric (2722) H2 2024 earnings summary

Financial highlights

• Revenue reached RMB 8,919.2 million, up 10.7% year-over-year; gross profit was RMB 1,555.3 million, up 5.0%.

• Profit attributable to shareholders rose 42.0% to RMB 431.3 million; EPS was RMB 0.12.

• Operating profit increased 37.3% to RMB 516.4 million; net profit margin improved to 5.2%.

• Cash and bank deposits grew 18.4% to RMB 2,744.6 million; net cash from operations was RMB 718.3 million.

• Final dividend proposed at RMB 0.035 per share, totaling RMB 128.96 million, pending approval.

Segment performance

• Clean energy equipment revenue rose 11.3% to RMB 7,300.4 million; gross profit up 6.5% to RMB 1,233.5 million, but segment profit fell 31.1% due to lower hydroelectric and non-recurring gains.

• High-end smart equipment revenue increased 8.6% to RMB 1,556.2 million; gross profit stable at RMB 270.1 million; segment turned to a loss of RMB 5.5 million due to steering system losses.

• Industrial services revenue declined 6.7% to RMB 62.4 million; segment profit rose to RMB 34.0 million.

• Major subsidiaries in wind power blades, industrial pumps, and wire/cable achieved strong order growth and market expansion.

Key financial ratios and metrics

• Gross margin was 17.4%, down 1.0 percentage point year-over-year.

• Current ratio at 1.52 (vs. 1.60 prior year); gearing ratio improved to 20.4% from 25.0%.

• Accounts receivable and other receivables increased to RMB 3,763.9 million; accounts payable and other payables rose to RMB 3,103.9 million.

• Inventory impairment provision increased to RMB 323.7 million; bad debt provisions for receivables were RMB 773.5 million.