Shanghai REFIRE Group (2570) H2 2024 earnings summary

Executive summary

• FY24 revenue was RMB648.8m, down 27.5% YoY; loss attributable to owners widened to RMB737.3m from RMB529.5m, while adjusted net loss narrowed 11.5% to RMB417.0m.

• Operating cash outflow eased 45.3% YoY to RMB393.2m; no dividend was declared for FY24.

Financial highlights

• Gross profit fell 37.8% YoY to RMB111.8m; gross margin declined to 17.2% from 20.1%.

• FY24 loss for the year was RMB777.8m versus RMB577.5m in FY23; loss per share was RMB9.03 versus RMB6.51.

• Cost of sales decreased 25.0% to RMB537.0m, in line with lower revenue; finance costs rose to RMB57.6m from RMB47.9m, mainly on higher borrowing interest.

• Adjusted administrative expenses, excluding share-based payments and listing expenses, fell to RMB226.8m from RMB259.1m; adjusted R&D expenses, excluding share-based payments, fell to RMB143.8m from RMB200.8m.

Outlook and guidance

• 2025 priorities include expanding heavy-duty truck applications, pursuing off-grid supercharging, advancing integrated green hydrogen projects, and continuing R&D on fuel cells and hydrogen equipment.

• Plans include broadening overseas sales networks and marketing in Europe, the Middle East and Southeast Asia, building on existing commercial applications and bulk orders.

• Integrated green hydrogen projects are intended to support renewable energy use and lower renewable hydrogen production costs, while creating demand for electrolysis equipment and end-use applications.