Guangzhou Guangri (600894) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 was RMB 3.21 billion, down 2.25% year-over-year; net profit attributable to shareholders was RMB 234 million, down 20.84% year-over-year.

• Excluding non-recurring items, net profit attributable to shareholders rose 7.05% year-over-year to RMB 309 million.

• Gross margin improved by 1.9 percentage points year-over-year, driven by cost control and product mix optimization.

• The company maintained a nationwide industrial layout and continued digital transformation, with significant progress in smart building and smart park solutions.

• Proposed interim dividend of RMB 7.50 (tax inclusive) per 10 shares.

Financial highlights

• Operating income: RMB 3.21 billion, down 2.25% year-over-year.

• Net profit attributable to shareholders: RMB 234 million, down 20.84% year-over-year.

• Net profit excluding non-recurring items: RMB 309 million, up 7.05% year-over-year.

• Operating cash flow: -RMB 212 million, compared to RMB 73 million in H1 2023.

• Basic and diluted EPS: RMB 0.2724, down 20.84% year-over-year.

Outlook and guidance

• The company expects continued growth in smart building, smart park, and digital transformation businesses.

• The Jinan East China Digital Industrial Park Phase I is set to commence operations in September 2024, enhancing production capacity and market reach.

• Focus remains on innovation-driven and capital-driven growth, with ongoing investment in R&D and external M&A.