Shenzhen Envicool Technology (002837) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached ¥1.71 billion, up 38.24% year-over-year, driven by strong growth in data center thermal management products.

• Net profit attributable to shareholders was ¥183.47 million, a 99.63% increase year-over-year.

• Gross margin remained stable at 30.99%, with improvements in data center segment offsetting declines in cabinet thermal management.

• Significant R&D investment and product innovation supported market expansion and competitive positioning.

Financial highlights

• Operating income: ¥1.71 billion, up 38.24% year-over-year.

• Net profit attributable to shareholders: ¥183.47 million, up 99.63% year-over-year.

• Basic EPS: ¥0.25, up from ¥0.13 year-over-year.

• Operating cash flow: -¥45.66 million, a further decline from -¥25.26 million year-over-year.

• Total assets at period end: ¥4.89 billion, down 3.89% from year-end 2023.

• Net assets attributable to shareholders: ¥2.59 billion, up 4.05% from year-end 2023.

• Non-recurring profit: ¥12.17 million, mainly from government subsidies.

Outlook and guidance

• Continued strong demand expected in data center and AI-driven cooling solutions.

• Cabinet thermal management growth to moderate due to slower storage sector expansion.

• Ongoing R&D and product launches to support further market share gains.