Gotion High-tech Co. (002074) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached ¥16.79 billion, up 10.20% year-over-year; net profit attributable to shareholders was ¥271 million, up 29.69% year-over-year.

• Gross margin for power battery systems was 13.57%, and for energy storage battery systems 23.87%.

• Overseas revenue grew 80.48% year-over-year, accounting for 32.91% of total revenue.

• Company maintained strong R&D investment, with 1,219 million yuan spent, up 1.24% year-over-year.

• No interim dividend, bonus shares, or capital increase from reserves planned for the half-year.

Financial highlights

• Operating income: ¥16.79 billion, up 10.20% year-over-year.

• Net profit attributable to shareholders: ¥271 million, up 29.69% year-over-year.

• Net profit excluding non-recurring items: ¥49.06 million, up 38.71% year-over-year.

• Operating cash flow: ¥180 million, up 9.17% year-over-year.

• Total assets: ¥98.77 billion, up 5.53% from year-end 2023.

• Net assets attributable to shareholders: ¥24.66 billion, down 1.64% from year-end 2023.

• Basic and diluted EPS: ¥0.15, up 25% year-over-year.

• Non-recurring gains mainly from government subsidies and fair value changes, totaling ¥222 million.

Outlook and guidance

• Company expects continued growth in power and energy storage battery demand, driven by global new energy vehicle and storage markets.

• Will continue to expand global production capacity and enhance R&D for next-generation battery technologies.

• Focus on internationalization, cost control, and supply chain resilience to address market and policy uncertainties.