Gree Electric Appliances (000651) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached ¥99.78 billion, up 0.55% year-over-year; net profit attributable to shareholders was ¥14.14 billion, up 11.54% year-over-year.

• Air conditioning business revenue grew 11.38% year-over-year to ¥77.96 billion, maintaining industry leadership.

• Gross margin for manufacturing was 33.63%, down 0.77 percentage points year-over-year.

• Cash flow from operating activities dropped 83.40% year-over-year to ¥5.12 billion.

• No interim dividend, bonus shares, or capital increase from reserves planned for the half-year.

Financial highlights

• Net profit attributable to shareholders: ¥14.14 billion, up 11.54% year-over-year.

• Operating income: ¥99.78 billion, up 0.55% year-over-year.

• Basic and diluted EPS: ¥2.56, up 13.27% year-over-year.

• Total assets at period end: ¥384.56 billion, up 4.48% from year-end 2023.

• Net assets attributable to shareholders: ¥117.76 billion, up 0.83% from year-end 2023.

Outlook and guidance

• Company expects continued focus on technology innovation, quality, and global expansion.

• Industry faces a slow-growth phase, but policy support for appliance upgrades and green consumption is expected to drive demand.