GD Power Development (600795) Q2 2024 earnings summary

Executive summary

• Net profit attributable to shareholders surged 127.35% year-over-year to ¥6.72 billion, driven by investment gains from subsidiary and associate disposals.

• Revenue declined 3.22% year-over-year to ¥85.83 billion, mainly due to lower coal segment revenue and reduced average sales price.

• Basic EPS rose 127.11% year-over-year to ¥0.377.

• Proposed interim dividend of ¥0.90 per 10 shares, totaling ¥1.605 billion, representing 23.9% payout of H1 net profit.

Financial highlights

• Operating cash flow increased 55.35% year-over-year to ¥21.85 billion, reflecting lower fuel costs.

• Net assets attributable to shareholders rose 12.02% from year-end to ¥54.63 billion.

• Total assets grew 2.38% to ¥468.8 billion.

• Adjusted net profit (excluding non-recurring items) fell 18.83% year-over-year to ¥2.18 billion.

• Non-recurring gains reached ¥4.53 billion, mainly from asset disposals and government subsidies.

Outlook and guidance

• Management expects continued tight power supply-demand balance, with national electricity consumption forecast to grow 6.5% in 2024.

• Coal market expected to remain loose, but regional and seasonal tightness may occur.

• Company will focus on cost control, flexible fuel procurement, and accelerating renewable energy development.