Zhuzhou CRRC Times Electric (3898) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached RMB10.28 billion, up 19.99% year-over-year, with net profit attributable to shareholders rising 30.56% to RMB1.51 billion, driven by strong rail transit and emerging equipment sales and higher gross profit.

• Basic earnings per share increased 32.10% to RMB1.07, and weighted average return on net assets rose by 0.65 percentage points to 3.93%.

• Maintained leading market share in rail transit traction converter systems, urban rail, engineering machinery, power semiconductors, and new energy vehicle electric drives.

• R&D investment totaled RMB973.79 million, 9.47% of revenue, supporting innovation in core technologies and new product development.

• Growth was supported by continued expansion in new energy and overseas markets.

Financial highlights

• Revenue: RMB10.28 billion, up 19.99% year-over-year.

• Net profit attributable to shareholders: RMB1.51 billion, up 30.56% year-over-year.

• Net cash flow from operating activities: RMB670 million, a significant turnaround from negative RMB468 million in the prior year.

• Total assets: RMB61.94 billion, up 15.97% from year-end 2023.

• Net assets attributable to shareholders: RMB39.52 billion, up 7.20% from year-end 2023.

Outlook and guidance

• Expects continued growth in rail transit and new energy equipment, leveraging national policies on transportation and carbon neutrality.

• Ongoing expansion in overseas markets and emerging sectors such as power semiconductors, new energy vehicle drives, and industrial converters.

• R&D and innovation will remain a strategic focus to drive future competitiveness.