Jiangsu Zhongtian Technology (600522) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached ¥21.42 billion, up 6.32% year-over-year; net profit attributable to shareholders was ¥1.46 billion, down 25.31% year-over-year.

• Cash flow from operating activities was negative ¥1.56 billion, mainly due to increased payments for raw materials and bid deposits.

• The company maintained a strong order backlog in energy network (¥282 billion), with significant growth in overseas marine cable orders.

• No interim dividend or capital increase from reserves was proposed for the half-year.

Financial highlights

• Operating income: ¥21.42 billion, up 6.32% year-over-year.

• Net profit attributable to shareholders: ¥1.46 billion, down 25.31% year-over-year.

• Net profit after non-recurring items: ¥1.33 billion, down 9.33% year-over-year.

• Basic and diluted EPS: ¥0.43, down 24.96% year-over-year.

• Net cash flow from operating activities: -¥1.56 billion.

Outlook and guidance

• The company expects continued strong demand in energy and communication networks, driven by global energy transition, offshore wind, and digital infrastructure.

• Risks include policy changes, market competition, overseas uncertainties, exchange rate fluctuations, and raw material price volatility.