GoodWe Technologies (688390) H2 2024 earnings summary

Executive summary

• Revenue for 2024 was ¥6.74 billion, down 8.36% year-over-year, mainly due to a significant decline in overseas inverter and battery sales, partially offset by strong growth in domestic residential PV system sales.

• Net loss attributable to shareholders was ¥61.81 million, a decrease of ¥913.91 million from the previous year, driven by lower gross profit from overseas sales, increased R&D investment, reduced scale effects, and higher financial expenses.

• Total assets at year-end reached ¥7.95 billion, up 11.82% from the prior year, while shareholders’ equity decreased by 7.81% to ¥2.75 billion.

• The company maintained a strong R&D focus, with R&D expenses rising 17.4% to ¥551 million, representing 8.18% of revenue.

Financial highlights

• Gross margin for the year was 20.92%, with domestic sales margin at 14.17% and overseas at 36.75%.

• Operating cash flow was negative ¥793 million, a sharp decline from the previous year, mainly due to lower collections and higher payments.

• Basic EPS was -¥0.26, down from ¥3.53 last year; ROE dropped to -2.16% from 32.53%.

• Non-recurring gains totaled ¥132 million, mainly from asset disposals and government grants.

Outlook and guidance

• The company will not distribute dividends for 2024, prioritizing cash for R&D and strategic development.

• Strategic focus remains on innovation in PV inverters, storage, and smart energy management, with continued global market expansion, especially in Europe, Australia, the Americas, and Asia-Pacific.

• Plans include further product diversification, digitalization, and strengthening of the global supply chain.