Sungrow Power Supply (300274) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached ¥31.02 billion, up 8.38% year-over-year; net profit attributable to shareholders was ¥4.96 billion, up 13.89% year-over-year.

• Gross margin improved to 32.42%, up 5.42 percentage points year-over-year, driven by brand premium, product innovation, and scale effects.

• Cash flow from operating activities was -¥2.60 billion, a significant decrease from ¥4.77 billion in H1 2023.

• R&D investment increased 41.65% year-over-year to ¥1.49 billion, with R&D staff accounting for 40% of total employees.

• The company maintained its global leadership in PV inverter shipments and continued to expand in storage, wind, and hydrogen energy markets.

Financial highlights

• Operating income: ¥31.02 billion, up 8.38% year-over-year.

• Net profit attributable to shareholders: ¥4.96 billion, up 13.89% year-over-year.

• Basic and diluted EPS: ¥2.39, down 18.43% year-over-year due to increased share base.

• Gross margin: 32.42%, up 5.42 percentage points year-over-year.

• Operating cash flow: -¥2.60 billion, down 154.59% year-over-year.

• Total assets: ¥94.42 billion, up 13.93% from end-2023.

• Net assets attributable to shareholders: ¥31.42 billion, up 13.40% from end-2023.

Outlook and guidance

• The company expects continued global growth in PV and storage, with ongoing expansion in international markets and new energy sectors.

• Focus remains on R&D, digital transformation, and global supply chain resilience to maintain competitiveness.

• No interim dividend, bonus shares, or capital increase from reserves planned for H1 2024.