Hisense Home Appliances Group (000921) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached ¥48.64 billion, up 13.27% year-over-year; net profit attributable to shareholders rose 34.61% to ¥2.02 billion.

• Gross margin for the main business was 23.22%, with manufacturing, HVAC, and home appliances as key contributors.

• Overseas business revenue surged 36.91% to ¥14.78 billion, with strong growth in Europe, Americas, Middle East, Asia-Pacific, and ASEAN.

• R&D investment increased 32.15% year-over-year, supporting product innovation and high-end market expansion.

Financial highlights

• Operating cash flow was ¥2.10 billion, down 44.91% year-over-year due to increased production reserves and higher bonus payments.

• Basic and diluted EPS were both ¥1.48, up 35.78% year-over-year.

• Total assets at period-end were ¥70.72 billion, up 7.24% from year-end 2023.

• Gross margin for HVAC was 29.09%, for home appliances 17.38%.

• R&D expenses reached ¥1.64 billion, up 32.15% year-over-year.

Outlook and guidance

• Focus on overseas market expansion, high-end product structure improvement, and digital transformation.

• Plans to enhance supply chain efficiency, accelerate channel integration, and invest in ESG and green manufacturing.

• No interim dividend, bonus shares, or capital increase from reserves planned for H1 2024.