ShenZhen Woer Heat-Shrinkable Material (002130) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached ¥3.10 billion, up 22.16% year-over-year, with net profit attributable to shareholders at ¥419 million, up 43.04% year-over-year.

• All major business segments—electronics, power, wire, and new energy—achieved revenue growth, with significant margin improvement in electronics and power products.

• R&D investment increased by 24.33% year-over-year, supporting product innovation and expansion into high-end and emerging markets.

• Gross margin rose to 33.23%, up 1.28 percentage points year-over-year, driven by cost controls and lower raw material prices.

Financial highlights

• Operating cash flow was ¥224 million, down 14.83% year-over-year due to increased investment outflows.

• Total assets at period-end were ¥9.61 billion, up 6.78% from year-end 2023; net assets attributable to shareholders were ¥5.09 billion, up 3.71%.

• Basic and diluted EPS were both ¥0.3329, up 43.06% year-over-year.

• Non-recurring gains totaled ¥26.72 million, mainly from government grants and fair value changes.

• R&D expenses reached ¥169 million, representing 5.46% of revenue.

Outlook and guidance

• Management expects continued growth in all business segments, leveraging R&D and automation to drive competitiveness.

• Focus remains on expanding high-end product lines, international markets, and new energy applications.