EVE Energy (300014) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 was RMB 21.66 billion, down 5.73% year-over-year; net profit attributable to shareholders was RMB 2.14 billion, down 0.64% year-over-year.

• Excluding non-recurring items, net profit rose 19.32% year-over-year to RMB 1.50 billion.

• Power battery shipments reached 13.54 GWh (up 7.03%), and energy storage battery shipments reached 20.95 GWh (up 133.18%).

• Company advanced its global strategy, launching the CLS business model and expanding international partnerships.

• Defined 2024 as the “Year of Quality,” focusing on production, market share, and customer satisfaction.

Financial highlights

• Operating cash flow dropped 90.55% year-over-year to RMB 312 million.

• Gross margin improved slightly by 0.52 percentage points to 16.45%.

• R&D investment increased 16.42% year-over-year to RMB 1.47 billion.

• Total assets at period-end were RMB 98.89 billion, up 4.80% from year-end 2023.

• Net assets attributable to shareholders rose 2.79% to RMB 35.70 billion.

Outlook and guidance

• Company expects continued growth in power and energy storage battery demand, driven by global electrification and digitalization trends.

• Anticipates further market share gains in energy storage and commercial vehicle batteries.

• Will continue to invest in R&D, global manufacturing, and supply chain resilience.