Sichuan New Energy Power Company (000155) Q4 2024 earnings summary

Executive summary

• Revenue for 2024 was ¥3.05 billion, down 7.79% year-over-year; net profit attributable to shareholders was ¥726.89 million, down 8.85% year-over-year.

• Wind and photovoltaic power generation capacity increased, with total installed capacity reaching 1.2977 GW, up 17.36% from last year.

• Lithium salt business faced a 42.89% revenue decline due to market price drops, but the company’s lithium mine project commenced production in Q4, boosting lithium concentrate output.

• Cash flow from operations was ¥1.58 billion, up 2.54% year-over-year; total assets grew 15.87% to ¥25.23 billion.

• The company completed major equity acquisitions and capital increases in wind and lithium segments, and issued new shares to raise funds.

Financial highlights

• Gross margin for wind and photovoltaic power was 71.03%, while lithium business margin dropped 46.54 percentage points year-over-year.

• Net profit margin and EPS both declined; basic and diluted EPS were ¥0.42, down 22.22% year-over-year.

• Net assets attributable to shareholders rose 39.10% to ¥10.28 billion.

• Operating cash flow remained strong, and the company’s asset-liability ratio improved to 49.92% from 53.82% last year.

Outlook and guidance

• The company plans to accelerate wind and photovoltaic project construction, expand lithium resource development, and enhance integration across the value chain.

• Focus remains on scaling up renewable energy and lithium operations, with new projects in Sichuan and expansion into other regions.

• Management expects continued growth in installed capacity and lithium output, leveraging policy support for renewables and EVs.