Kaishan Group Co (300257) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 was RMB 2.03 billion, down 3.88% year-over-year; net profit attributable to shareholders was RMB 177.6 million, down 23.84% year-over-year.

• Decline in profit mainly due to reduced geothermal engineering project revenue and increased selling, administrative, and credit impairment expenses.

• The company continues to focus on compressor manufacturing and geothermal power, with significant overseas expansion and R&D investment.

Financial highlights

• Operating income: RMB 2,032,483,131.91, down 3.88% year-over-year.

• Net profit attributable to shareholders: RMB 177,604,769.47, down 23.84% year-over-year.

• Operating cash flow: RMB 202,188,309.09, down 40.56% year-over-year.

• Basic and diluted EPS: RMB 0.1787, down 23.86% year-over-year.

• Total assets at period end: RMB 14,657,775,593.90, up 2.94% from year-end 2023.

• Net assets attributable to shareholders: RMB 6,431,309,058.84, up 3.86% from year-end 2023.

Outlook and guidance

• The company expects continued growth in overseas geothermal and compressor markets, leveraging its global sales and R&D network.

• Domestic compressor market may further differentiate, with focus on high-efficiency, low-carbon solutions.

• Ongoing investment in hydrogen and green ammonia applications, aiming for long-term sustainable growth.