Sieyuan Electric (002028) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached ¥6.17 billion, up 16.27% year-over-year, with net profit attributable to shareholders at ¥887 million, a 26.64% increase year-over-year.

• Gross margin improved to 31.75%, and basic EPS rose to ¥1.15, up 26.37% year-over-year.

• Cash flow from operating activities turned positive at ¥106.5 million, compared to a negative ¥13.8 million in the prior year.

• The company continues to lead in power transmission and distribution equipment, expanding in digital grid, power electronics, and international markets.

• No interim dividend, bonus shares, or capital increase from reserves planned for the half-year.

Financial highlights

• Operating income: ¥6.17 billion, up 16.27% year-over-year; net profit: ¥887 million, up 26.64%.

• Operating cash flow: ¥106.5 million, up 873.36% year-over-year.

• Gross margin: 31.75%, up 2.69 percentage points year-over-year.

• Total assets: ¥19.67 billion, up 5.02% from year-end 2023; net assets: ¥11.04 billion, up 6.27%.

• R&D investment: ¥444.7 million, up 21.12% year-over-year.

Outlook and guidance

• The company is focused on innovation, digitalization, and international expansion, with continued investment in R&D and new product development.

• Management highlights opportunities in digital grid, energy storage, and overseas EPC projects, while noting ongoing market and policy risks.