Ningbo Tuopu Group (601689) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached RMB 12.22 billion, up 33.42% year-over-year, with net profit attributable to shareholders at RMB 1.46 billion, up 33.11% year-over-year.

• Operating cash flow was RMB 1.04 billion, down 15.31% year-over-year, while total assets grew 10.79% to RMB 34.09 billion.

• The company completed a private placement of 60.73 million A-shares, raising net proceeds of RMB 3.50 billion.

• No interim dividend or capital increase from reserves was proposed for the reporting period.

Financial highlights

• Gross margin for auto parts was 18.92%, up 2.71 percentage points year-over-year.

• Basic and diluted EPS were RMB 0.88, up 31.34% year-over-year.

• Net assets attributable to shareholders increased 31.05% to RMB 18.06 billion.

• Non-recurring profit items contributed RMB 160 million, mainly from government grants and investment income.

• R&D expenses rose 18.25% to RMB 533 million, with R&D intensity at about 5% of revenue.

Outlook and guidance

• Management expects continued growth driven by new energy vehicle (NEV) penetration and global expansion.

• Ongoing capacity expansion in China and overseas is expected to support future order growth.

• Capital expenditures and R&D will remain high to maintain competitiveness and support new product launches.