Sungrow Power Supply (300274) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached ¥18.93 billion, up 6.37% year-over-year; net profit attributable to shareholders was ¥2.64 billion, down 7.96% year-over-year.

• Year-to-date revenue totaled ¥49.95 billion, a 7.61% increase from the same period last year; net profit attributable to shareholders rose 5.21% to ¥7.60 billion.

• Adjusted net profit (excluding non-recurring items) for Q3 was ¥2.50 billion, down 10.57% year-over-year.

Financial highlights

• Basic and diluted EPS for Q3 were ¥1.27, down 7.97% year-over-year; year-to-date EPS was ¥3.67, up 5.76%.

• Gross margin and net margin declined due to increased costs and expenses.

• Operating cash flow for the first nine months was ¥803.94 million, a sharp decrease of 82.34% year-over-year.

• Total assets at Q3-end were ¥105.59 billion, up 27.40% from the start of the year.

• Shareholders’ equity increased 23.30% to ¥34.16 billion.

Segment performance

• Significant increases in sales, management, and R&D expenses year-over-year, reflecting business expansion and higher personnel costs.

• Investment income surged due to gains from forward foreign exchange contracts.

• Credit impairment losses nearly doubled, mainly from increased bad debt provisions.