Sino-Synergy Hydrogen Energy Technology Jiaxing (9663) H1 2024 earnings summary

Executive summary

• H1 2024 revenue fell 37.3% YoY to RMB133.012m; gross margin narrowed to 0.6%, and net loss widened to RMB212.297m as new products transitioned into mass production.

• Hongxin GIII stacks and Hongtu H systems entered batch launch, alongside expanding applications and R&D programs.

Financial highlights

• Gross profit fell to RMB0.770m from RMB36.918m; operating loss widened to RMB207.962m from RMB95.413m.

• Loss attributable to owners was RMB212.297m versus RMB124.315m; basic loss per share was RMB0.41 versus RMB0.30.

• R&D expense rose 34.1% to RMB65.3m; impairment losses on financial and contract assets increased to RMB44.6m.

• Inventory impairment fell to RMB2.5m from RMB16.0m; the H1 charge covered obsolete materials following prior-period provisioning for aging 9SSL stack inventories.

Outlook and guidance

• Priorities include product iteration, high-efficiency stack and system R&D, cost reduction, improved production efficiency, and localized capacity expansion.

• Development pipeline includes megawatt-scale PEM electrolyzers, 1,000Nm³ alkaline electrolyzers and a hydrogen-production system with safety-instrumented functionality.

• Management expects production and gross margin to recover as the new-product ramp is adjusted and optimized; no numerical financial guidance was stated.