Tianneng Power International (819) H2 2024 earnings summary

Executive summary

• Revenue for 2024 declined by 8.61% year-over-year to RMB76,669 million, with profit attributable to shareholders down 37.29% to RMB1,142 million and basic EPS at RMB1.01.

• Gross profit fell 17.64% to RMB4,912 million, with gross margin dropping to 6.41% from 7.11% in 2023.

• The company maintained a strong focus on innovation, expanding its product portfolio in lead-acid, lithium-ion, hydrogen, and sodium-ion batteries, and advanced its recycling and internationalization strategies.

• A final dividend of HK$0.17 per share is proposed, subject to shareholder approval.

Financial highlights

• Manufacturing business revenue was RMB43,559 million; trading revenue was RMB33,110 million.

• Net profit margin decreased to 1.69% from 2.19% year-over-year.

• Return on equity dropped to 6.95% from 10.31% in 2023.

• Net cash from operating activities was RMB549 million, down from RMB2,330 million in 2023.

• Total assets increased 18.24% to RMB55,281 million; total liabilities rose 28.49% to RMB36,372 million.

• Gearing ratio increased to 33.55% from 19.42% in 2023.

Outlook and guidance

• Plans to deepen R&D in lead-acid, lithium-ion, hydrogen, sodium-ion, and solid-state batteries, aiming for cost reduction and performance improvement.

• Focus on green and intelligent manufacturing, digitalization, and global market expansion.

• Strategic emphasis on closed-loop recycling and sustainable growth to enhance shareholder returns.