GoodWe Technologies (688390) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 was ¥3.15 billion, down 17.47% year-over-year due to overseas inventory and lower inverter and battery sales abroad, despite strong domestic residential PV system growth.

• Net loss attributable to shareholders was ¥23.83 million, a decrease of 103.22% compared to the same period last year, mainly due to a sharp drop in high-margin overseas sales and increased R&D and market expansion costs.

• Total assets at period end were ¥7.44 billion, up 4.65% from year-end 2023; shareholders' equity was ¥2.84 billion, down 4.79%.

• The company maintained a strong R&D focus, with R&D investment rising 23.79% year-over-year to ¥264.95 million, accounting for 8.42% of revenue.

• No interim dividend or capital increase from reserves was proposed for the half-year.

Financial highlights

• Operating income: ¥3.15 billion, down 17.47% year-over-year.

• Net loss attributable to shareholders: ¥23.83 million, down 103.22% year-over-year.

• Operating cash flow: -¥908.23 million, a decrease of 228.64% year-over-year, mainly due to lower sales receipts and higher payments to suppliers.

• Basic and diluted EPS: -¥0.10, down from ¥3.06 and ¥3.04 respectively in H1 2023.

• Gross margin declined due to a shift in sales mix toward lower-margin domestic products and increased costs.

Outlook and guidance

• The company expects continued challenges from overseas inventory and international trade uncertainties but will focus on strengthening domestic market share and accelerating global strategic deployment.

• R&D and innovation will remain a priority to maintain competitiveness in PV and energy storage markets.