Jiangsu Guofu Hydrogen Energy Equipment (2582) H2 2024 earnings summary

Executive summary

• FY2024 revenue fell 12.2% YoY to RMB458.6m; gross profit declined 50.8% to RMB45.9m, and loss attributable to owners widened to RMB210.3m from RMB73.3m.

• Basic loss per share was RMB2.12 versus RMB0.81 in FY2023; no FY2024 dividend was declared.

Financial highlights

• Revenue was RMB458.6m versus RMB522.4m; cost of sales declined 3.8% to RMB412.7m, while gross profit fell to RMB45.9m from RMB93.4m.

• Gross margin contracted to 10.0% from 17.9%; FY2024 loss before tax was RMB252.6m versus RMB88.8m, and net loss was RMB208.6m versus RMB75.0m.

• Administrative expenses rose to RMB140.6m from RMB90.9m; R&D expenses increased to RMB43.8m from RMB39.1m, and listing expenses were RMB26.2m versus RMB3.2m.

• Net ECL impairment losses increased to RMB22.0m from RMB6.1m; finance costs rose to RMB32.8m from RMB22.8m.

• An income tax credit of RMB44.0m compared with RMB13.8m in FY2023, reflecting increased tax losses, share-based payment expenses, government subsidies and ECL provisions.

Outlook and guidance

• Priorities include expanding overseas cooperation, improving products and technology, reducing manufacturing costs, raising production efficiency and pursuing economies of scale; no quantified financial guidance was stated.

• Plans include increasing promotion of upstream hydrogen production, storage and transport equipment, developing liquid-hydrogen products, expanding manufacturing capacity and continuing R&D and international expansion.