CIMC Enric (3899) H2 2024 earnings summary

Executive summary

• Revenue increased 4.8% year-over-year to RMB24.76 billion, driven by clean energy and liquid food growth, while chemical and environmental segment declined due to weaker tank container demand.

• Clean energy contributed 69.4% of total revenue, with a 15.3% segment increase and notable hydrogen business and overseas order growth.

• Net cash from operating activities rose 39.6% YoY to RMB2.49 billion; free cash flow surged 255.5% YoY to RMB1.31 billion.

• Net profit decreased 1.7% to RMB1.14 billion, with core profit up 4.2% to RMB1.34 billion; consolidated net profit and profit attributable to shareholders remained stable YoY.

• Final dividend of HKD0.30 per share proposed, maintaining a payout ratio of approximately 50%.

Financial highlights

• Clean energy segment revenue reached RMB17.18 billion, up 15.3% YoY; segment profit up 71.4% YoY to RMB960 million.

• Liquid food segment revenue increased 3.7% YoY to RMB4.45 billion; chemical & environmental segment revenue declined 29.4% YoY to RMB3.12 billion.

• Gross profit margin declined to 14.4% from 15.7%; operating profit margin slightly decreased to 6.2% from 6.5%.

• Cash and cash equivalents rose to RMB7.26 billion; net cash position maintained with zero net gearing.

• Return on equity (ROE) was 9.6% (11.2% excluding CIMC Safeway IPO impact), down from 10.9% last year.

Outlook and guidance

• Strategic focus on expanding from equipment and engineering to comprehensive service provider for low-carbon, intelligent new energy solutions.

• Clean energy and hydrogen businesses expected to benefit from global and domestic policy support and rising demand for LNG and alternative fuels.

• Plans to scale hydrogen and LNG capacity to 200,000 tons and 1,000,000 tons respectively by 2027, with multiple projects under construction or planned.

• Phase I of the 50,000-ton green methanol demo project to be operational in 2025, supporting green shipping and energy transition.

• Liquid food segment aims to expand in non-beer sectors, enhance operational excellence, and grow in China and globally.