TCL Zhonghuan Renewable Energy Technology (002129) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 was RMB 16.21 billion, down 53.54% year-over-year; net loss attributable to shareholders was RMB -3.06 billion, compared to a profit of RMB 4.54 billion last year.

• Operating cash flow dropped 95.52% year-over-year to RMB 128 million; basic EPS was -0.7680 yuan.

• The company faced severe industry overcapacity, price wars, and global market headwinds, leading to significant losses in both materials and module businesses.

• Maxeon, a key overseas associate, saw sharp declines in performance and share price, further impacting results.

Financial highlights

• Revenue: RMB 16.21 billion, down 53.54% year-over-year.

• Net loss attributable to shareholders: RMB -3.06 billion, down 167.53% year-over-year.

• Operating cash flow: RMB 128 million, down 95.52% year-over-year.

• Gross margin for the main photovoltaic business fell sharply; overall gross margin and profitability deteriorated.

• Total assets at period end: RMB 125.20 billion; net assets attributable to shareholders: RMB 37.48 billion.

Outlook and guidance

• The company expects the global photovoltaic industry to remain at the bottom of the cycle in H2 2024, with intensified competition and continued price pressure.

• Management aims to focus on cost efficiency, organizational reform, and global expansion, especially in North America.

• The company is confident that industry consolidation will benefit long-term structure and profitability.