CALB Group Co (3931) H1 2024 earnings summary

Executive summary

• Revenue rose 1.4% year-over-year to RMB12,469 million for the six months ended 30 June 2024, driven by increased production capacity and customer demand.

• Net profit surged 56.6% year-over-year to RMB417 million, with basic EPS up 69.9% to RMB0.1405.

• Gross profit margin improved to 15.6% from 9.6%, and net sales margin increased to 3.3% from 2.2%.

• Significant growth in energy storage system (ESS) products offset a decline in EV battery revenue due to lower prices despite higher volumes.

• The company maintained its position as a leading EV battery supplier, with notable international expansion and technological advancements.

Financial highlights

• Revenue: RMB12,469 million (+1.4% YoY); Net profit: RMB417 million (+56.6% YoY).

• Gross profit: RMB1,948 million (up from RMB1,179 million YoY).

• Operating cash inflow: RMB1,255 million, reversing a prior year outflow.

• Bank and cash balances: RMB10,865 million; total borrowings: RMB37,515 million.

• Gearing ratio increased to 61.2% from 47.1% due to higher borrowings for expansion.

Outlook and guidance

• Focus on innovation in advanced materials, manufacturing, and battery technologies to maintain product leadership.

• Plans to expand international production capacity, especially in Europe and ASEAN, and deepen strategic partnerships.

• Continued growth expected in energy storage and commercial vehicle segments, leveraging favorable policies and market demand.