Central New Energy Holding Group (1735) H2 2024 earnings summary

Executive summary

• Revenue rose 49.8% year-over-year to HK$6,032.0 million, driven by strong growth in new energy and EPC segment, which now accounts for 68.4% of total revenue.

• Net profit attributable to owners increased to HK$106.4 million, but overall net profit declined to HK$54.1 million due to higher administrative expenses and lower gross margin.

• Strategic shift underway: scaling back green construction, intensifying investment in renewable energy, especially PV battery and component production.

• No final dividend recommended for the year.

Financial highlights

• Gross profit fell 26.1% to HK$127.8 million, reflecting lower margins in PV battery/component sales.

• EBITDA increased 91.3% to HK$239.9 million, supported by higher other income, mainly government grants.

• Basic and diluted EPS rose to HK cents 2.52 from 1.57 year-over-year.

• Cash and bank balances increased to HK$265.9 million, up from HK$137.4 million.

• Current ratio improved to 1.2x from 1.1x.

Outlook and guidance

• Phase III of 7.5GW PV battery and 3.5GW component project in Fengtai County to complete by end-2026; 6GW battery project in Tongcheng City to complete in Q2 2025, expanding to 12GW by Q4 2026.

• Continued focus on expanding PV battery/component capacity and new energy projects in Anhui province.

• Green construction business to be scaled down over 5–10 years as renewable energy becomes core growth driver.