Shenzhen Envicool Technology (002837) Q4 2024 earnings summary

Executive summary

• Achieved record revenue and profit growth, with double-digit increases in both metrics year-over-year for over a decade.

• Expanded market share in data center cooling, storage energy, and vehicle thermal management.

• Continued investment in R&D and innovation, launching new liquid cooling and energy-efficient products.

Financial highlights

• Revenue reached ¥4.59 billion, up 30.04% year-over-year.

• Net profit attributable to shareholders was ¥452.66 million, up 31.59% year-over-year.

• Gross margin for precision thermal control equipment was 28.75%, down 1 percentage point from last year.

• Operating cash flow was ¥199.84 million, down 55.89% year-over-year due to increased supplier payments and payroll.

• Basic and diluted EPS were both ¥0.61, up 29.79% year-over-year.

• Total assets at year-end were ¥6.01 billion, up 18.14% from the prior year.

Outlook and guidance

• Plans to strengthen leadership in data center and storage energy cooling, expand overseas, and accelerate innovation in liquid cooling and energy-efficient solutions.

• Focus on leveraging new production capacity and supply chain platforms to meet growing demand.

• Identifies risks from intensified competition, new business development, talent retention, policy changes, and goodwill impairment.