Shenzhen Hopewind Electric (603063) Q4 2024 earnings summary

Executive summary

• FY2024 revenue was RMB 3,733,285,492.02, down 0.50% YoY; net profit attributable to shareholders fell 12.28% to RMB 440,578,959.24, while adjusted net profit declined 5.76%.

• Lower new-energy control revenue was partly offset by growth in engineering drives and other products; gross margin for core businesses rose 3.13 percentage points to 36.82%.

• The audit opinion was unqualified; business priorities include expanding wind, solar, storage, hydrogen, drive and large-capacity power offerings, with no quantified earnings guidance stated.

Financial highlights

• Revenue: RMB 3,733,285,492.02, down 0.50% YoY; operating costs: RMB 2,319,803,612.56, down 5.96%.

• Profit before tax was RMB 521,186,712.63, down 8.54%; net income was RMB 459,467,129.47, while parent-attributable net income was RMB 440,578,959.24.

• Adjusted net income, excluding non-recurring items, was RMB 396,659,137.21, down 5.76% YoY; non-recurring gains totaled RMB 43,919,822.03.

• Operating cash flow was RMB 272,280,080.77, down 44.22% YoY; investing outflow narrowed to RMB 159,171,226.56 from RMB 434,579,351.86.

Outlook and guidance

• Priorities are to expand applications and market reach for wind, solar, storage, hydrogen and drive products, while improving system solutions, product performance, manufacturing costs and customer experience.

• R&D plans target higher-capacity wind converters, grid-forming solar and storage systems, series MW-scale hydrogen power supplies, next-generation drives and data-center power solutions.

• Market development plans emphasize domestic sales and service networks and faster growth in solar-storage, drive and hydrogen markets; overseas storage promotion is also planned.