Ginlong Technologies (300763) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached RMB 3.35 billion, up 3.20% year-over-year; Q2 revenue grew 40.18% sequentially from Q1.

• Net profit attributable to shareholders was RMB 352 million, down 43.84% year-over-year; Q2 net profit surged 1,536.32% sequentially from Q1.

• Operating cash flow turned positive at RMB 594 million, a 669.88% increase year-over-year.

• Company maintained a diversified business in PV string inverters, distributed PV power stations, and residential PV systems.

Financial highlights

• Gross margin for H1 2024 was 32.18%, down 4.55 percentage points year-over-year.

• Basic EPS was RMB 0.89, down 44.38% year-over-year.

• Net assets attributable to shareholders at period end were RMB 8.06 billion, up 3.98% from year-end 2023.

• Cash and cash equivalents at period end were RMB 664.85 million, down 38.33% from year-end 2023.

• R&D investment increased 10.31% year-over-year to RMB 176 million.

Outlook and guidance

• Management expects high PV installation growth in China for 2024, supported by policy and grid improvements.

• Overseas inverter and storage orders are expected to remain strong, with further improvement in product mix and profitability.