Central New Energy Holding Group (1735) H1 2024 earnings summary

Executive summary

• Revenue rose 52.5% year-over-year to HK$2,531.9 million for the six months ended 30 June 2024, driven by strong growth in new energy and EPC, health and wellness, and smart energy management segments.

• Net profit increased to HK$60.1 million from HK$24.1 million year-over-year, mainly due to higher revenue and full-capacity production of 6GW photovoltaic N-type battery projects, with profit attributable to owners at HK$40.6 million.

• The business is focused on green energy, with ongoing expansion in high-efficiency N-type battery and photovoltaic component supply, and expects Phase III construction in Fengtai County to be completed in Q4 2024.

• No interim dividend was declared for the period.

Financial highlights

• Revenue: HK$2,531.9 million, up 52.5% year-over-year.

• Gross profit: HK$43.2 million, down 35.1% year-over-year; gross margin fell to 1.7% from 4% due to lower margins in new energy and EPC.

• Net profit: HK$60.1 million, up from HK$24.1 million year-over-year.

• Basic and diluted EPS: HK0.96 cents, up from HK0.38 cents year-over-year.

• Cash and bank balances: HK$339.9 million as of 30 June 2024.

Outlook and guidance

• Phase III of the 6GW battery project in Fengtai County is expected to be operational in Q4 2024.

• The group will continue to pursue green energy opportunities and expand its photovoltaic business, supported by new equipment leases and cooperation agreements.