Dajin Heavy Industry (002487) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 was RMB 1.36 billion, down 34.20% year-over-year due to slower domestic demand and price declines.

• Net profit attributable to shareholders was RMB 174 million, a 36.23% decrease year-over-year.

• Overseas business accounted for over 60% of wind power equipment revenue, with significant growth in high-margin offshore wind projects.

• Gross margin improved to 28.57%, up 4.61 percentage points year-over-year, driven by product and market structure optimization.

• Operating cash flow turned positive at RMB 247 million, an improvement of RMB 495 million year-over-year.

Financial highlights

• Revenue: RMB 1,356 million (-34.20% YoY); Net profit: RMB 174 million (-36.23% YoY).

• Basic and diluted EPS: RMB 0.27 (-37.21% YoY).

• Gross margin: 28.57% (+4.61ppt YoY); Overseas and domestic gross margins both increased.

• Operating cash flow: RMB 247 million (vs. -RMB 248 million YoY).

• Total assets: RMB 10.54 billion (+3.06% from year-end 2023).

Outlook and guidance

• The company will continue to focus on high-value overseas offshore wind markets, aiming for leading market share in developed economies within 3–5 years.

• Ongoing investment in next-generation floating foundation products and global logistics capabilities.

• Domestic market remains challenging; company will prioritize high-margin, short-cycle projects.