Wuxi Lead Intelligent Equipment (300450) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 was ¥5.75 billion, down 18.82% year-over-year; net profit attributable to shareholders was ¥459 million, down 61.74% year-over-year.

• Overseas business revenue surged 159.56% year-over-year, now 19.03% of total revenue, with gross margin up to 39.47%.

• Platform strategy drove strong growth in smart logistics (+40.41%) and PV equipment (+41.53%), while lithium battery equipment declined 27.10% due to domestic demand slowdown.

• Company continues to invest in R&D, digitalization, and global expansion, with significant breakthroughs in solid-state battery and PV technologies.

• No interim dividend was declared for the half-year period.

Financial highlights

• Operating income: ¥5.75 billion, down 18.82% year-over-year.

• Net profit attributable to shareholders: ¥459 million, down 61.74% year-over-year.

• Basic EPS: ¥0.2932, down 61.74% year-over-year.

• Operating cash flow: -¥1.79 billion, further negative compared to -¥1.54 billion last year.

• Total assets: ¥33.03 billion, down 6.40% from year-end 2023.

Outlook and guidance

• Overseas business and non-lithium battery segments are expected to drive the next growth curve.

• Company will continue to deepen global and platform strategies, expand in PV, hydrogen, and logistics, and enhance digitalization.

• Focus remains on R&D for solid-state batteries, advanced PV, and hydrogen equipment.