Haitian International (1882) H1 2024 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2024 rose 25.7% year-over-year to RMB8,017.8 million, driven by global industrial chain restructuring and strong export demand in downstream consumer product industries.

• Net profit attributable to shareholders increased 23.5% year-over-year to RMB1,520.6 million, with a net profit margin of 19.0%.

• Domestic sales grew 33.7% year-over-year to RMB5,182.5 million, while overseas sales increased 13.2% to RMB2,835.3 million.

• All product lines saw year-over-year growth, with the Mars and Zhafir series showing significant gains.

• No interim dividend was declared for the period, with potential distribution considered after annual results review.

Financial highlights

• Gross profit increased 26.9% year-over-year to RMB2,591.6 million; gross margin improved to 32.3% from 32.0%.

• Operating profit increased 28.5% year-over-year to RMB1,750.8 million.

• Basic earnings per share rose 23.5% to RMB0.95.

• Net cash generated from operating activities was RMB1,205.4 million, with a net cash position (including wealth management products) of RMB10,650.0 million as of 30 June 2024.

• Capital expenditure for the period was RMB583.8 million.

Outlook and guidance

• The company expects continued divergence in global inflation and ongoing risks from trade protectionism and geopolitical uncertainties in the second half of 2024.

• Domestic economic recovery is anticipated to accelerate, supported by policies for equipment replacement and consumer goods trade-in.

• Focus areas include strengthening quality control, enhancing customer service, and expanding R&D for new, energy-efficient products, as well as accelerating digitalisation and intelligentisation.

• Emphasis on product innovation, expanding overseas market presence, and new product launches, with ongoing construction of new factories.