China CSSC (600150) H1 2024 earnings summary

Executive summary

• Achieved revenue of RMB 36.02 billion in H1 2024, up 17.99% year-over-year; net profit attributable to shareholders reached RMB 1.41 billion, up 155.31% year-over-year.

• Shipbuilding, repair, and offshore engineering revenue grew 22.39% year-over-year; gross margin improved by 0.83 percentage points to 7.94%.

• Order book structure improved, with high-end and green ship types exceeding 70% of new orders; hand-held orders at record levels.

• Cash flow from operations was negative RMB 3.81 billion, mainly due to increased production and inventory investment.

• No interim dividend or capital increase from reserves was proposed.

Financial highlights

• Revenue: RMB 36.02 billion, up 17.99% year-over-year.

• Net profit attributable to shareholders: RMB 1.41 billion, up 155.31% year-over-year.

• Basic and diluted EPS: RMB 0.316, up 154.84% year-over-year.

• Gross margin: 7.94%, up 0.83 percentage points year-over-year.

• Operating cash flow: -RMB 3.81 billion, compared to RMB 4.82 billion in H1 2023.

Outlook and guidance

• Focus on high-quality development, cost control, and risk management in H2 2024.

• Continue to expand high-end, green, and intelligent ship orders; accelerate production and delivery efficiency.

• Maintain strong R&D investment and digital transformation to enhance competitiveness.