Deewin Tianxia (2418) H1 2024 earnings summary

Executive summary

• H1 2024 revenue fell 14.7% YoY to RMB1,295.7 million, while net profit rose 5.2% to RMB115.6 million.

• Lower financial-asset impairment losses and improved net finance results supported profit growth despite weaker logistics revenue.

Financial highlights

• Revenue fell from RMB1,518.1 million to RMB1,295.7 million; cost of revenue declined 15.0% to RMB1,073.7 million.

• Gross profit declined 13.0% to RMB221.9 million, while gross margin increased to 17.1% from 16.8%.

• Operating profit was RMB143.7 million versus RMB148.6 million; profit before tax rose 4.7% to RMB147.8 million.

• Net profit was RMB115.6 million versus RMB109.9 million; net profit attributable to shareholders was RMB114.9 million. Basic and diluted EPS remained RMB0.05.

• Net impairment losses fell 95.8% to RMB1.1 million from RMB26.0 million; net finance income was RMB1.2 million versus net finance costs of RMB9.8 million.

Outlook and guidance

• H2 priorities include large-customer vehicle solutions, intelligent warehousing, heavy-cargo and cold-chain transport, and new-energy logistics projects.

• New-energy logistics development targets Shanxi, Inner Mongolia, Shaanxi, Sichuan and Xinjiang, serving coal mines, coking plants and steel mills.

• Supply-chain finance plans include optimizing instruments, lowering interest rates, strengthening credit review and risk modelling, and developing new- and used-vehicle channels.

• IoV and data priorities include more R&D and talent investment, data-lake and warehouse infrastructure, intelligent networking, new-energy applications and overseas data-centre deployment.