NARI Technology (600406) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached RMB 20.11 billion, up 10.02% year-over-year; net profit attributable to shareholders was RMB 2.71 billion, up 8.36% year-over-year.

• Gross margin improved to 28.94%, with notable growth in energy low-carbon and overseas business.

• The company proposed a cash dividend of RMB 0.135 per share, totaling RMB 1.08 billion, representing 39.93% of H1 net profit.

• R&D expenses increased 18.78% year-over-year, supporting innovation in smart grid, digital integration, and energy storage.

• No material non-operating fund occupation or regulatory violations reported.

Financial highlights

• Operating income: RMB 20.11 billion, up 10.02% year-over-year.

• Net profit attributable to shareholders: RMB 2.71 billion, up 8.36% year-over-year.

• Basic and diluted EPS: RMB 0.34, up 8.27% year-over-year.

• Net cash flow from operating activities: -RMB 187 million, mainly due to increased procurement payments.

• Gross margin: 28.94%, up 0.44 percentage points year-over-year.

Outlook and guidance

• The company expects continued growth driven by digitalization, energy transition, and international expansion.

• Focus remains on smart grid, digital integration, low-carbon energy, and industrial internet sectors.

• Management highlights risks from market environment, talent, technology innovation, and overseas operations.