Tianneng Power International (819) H1 2024 earnings summary

Executive summary

• Revenue reached RMB49,915 million for the six months ended 30 June 2024, up 20.36% year-over-year, driven by strong trading growth despite a slight decline in manufacturing revenue.

• Gross profit decreased by 16.08% to RMB2,546 million, with gross margin in manufacturing at 12.12%, down 2.01 percentage points due to higher product costs.

• Net profit attributable to owners was RMB928 million, with basic EPS of 82.43 RMB cents, both up 1.09% year-over-year.

• No interim dividend was declared for the period.

• The company advanced its dual-core strategy in motive batteries and energy storage systems, with significant R&D in lithium, hydrogen, and sodium-ion batteries.

Financial highlights

• Trading segment revenue surged 44.75% year-over-year to RMB28,704 million, while manufacturing revenue declined 1.99% to RMB21,211 million.

• Other income rose 58.29% to RMB1,242 million, mainly from increased government subsidies and interest income.

• R&D costs increased to RMB942 million, reflecting more projects and team optimization.

• Net cash outflow from operating activities was RMB162 million, compared to an inflow of RMB1,531 million last year, mainly due to higher inventory.

• Total assets grew 16.12% to RMB54,288 million, with total liabilities up 25.57% to RMB35,544 million.

• Gearing ratio increased to 26.40% from 19.42% at year-end 2023.

Outlook and guidance

• Focus remains on high-quality growth, technological innovation, and expanding international presence, especially in Southeast Asia.

• Plans to further develop motive batteries, ESS, and circular economy initiatives.

• Continued emphasis on full life cycle management for lead-acid and lithium batteries.