TBEA (600089) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 was RMB 47.80 billion, down 4.54% year-over-year; net profit attributable to shareholders was RMB 3.03 billion, down 59.46% year-over-year, mainly due to a sharp decline in polysilicon prices and lower coal prices.

• Gross margin and profitability declined significantly, with basic EPS at RMB 0.6044, down 68.77% year-over-year.

• Domestic and international markets both grew in key segments, but the new energy segment was heavily impacted by market price drops.

Financial highlights

• Operating income: RMB 47.80 billion, -4.54% year-over-year.

• Net profit attributable to shareholders: RMB 3.03 billion, -59.46% year-over-year.

• Net cash flow from operating activities: RMB 5.32 billion, -56.08% year-over-year.

• Total assets: RMB 203.47 billion, up 6.03% from year-end 2023.

• Gross margin for new energy segment dropped 39.75 percentage points year-over-year due to polysilicon price collapse.

• R&D expenses increased 30.08% year-over-year to RMB 670 million.

Outlook and guidance

• Company expects continued pressure on polysilicon prices and will focus on cost reduction, efficiency improvement, and technological innovation.

• Will continue to expand in domestic and international markets, especially in power transmission, new energy, and materials.