Kaishan Group Co (300257) investor relations material

Executive summary

• Revenue grew 11.55% year-over-year to ¥4.72 billion, with net profit up 13.65% to ¥364 million.

• Major business segments: compressors, geothermal power, and green hydrogen/ammonia, with significant international expansion.

• Geothermal and green hydrogen projects in Kenya and Indonesia reached key milestones, supporting long-term growth.

• Strategic focus on North America for geothermal power and green hydrogen, leveraging proprietary technology.

Financial highlights

• Operating income rose 19.54% year-over-year to ¥442 million; net profit attributable to shareholders increased 13.65%.

• EBITDA and cash flow remain strong, with operating cash flow at ¥926 million, though down 8.69% from last year.

• Gross margin for geothermal power reached 52.94%, compressors at 32.43%.

• Overseas revenue accounted for 47.06% of total, up 16.79% year-over-year.

• Basic and diluted EPS both ¥0.37, up 15.63% year-over-year.

Outlook and guidance

• Plans to expand geothermal power capacity in North America, targeting several hundred MW over the next decade.

• Green hydrogen/ammonia business to scale up, with Kenya plant expected to generate $250 million annual revenue.

• Focus on EBITDA growth and asset value, shifting valuation approach for long-term investors.

• Continued investment in R&D and global manufacturing bases to support international growth.