Zhejiang Tengy Environmental Technology (1527) H1 2024 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2024 was RMB356.74 million, up 23.57% year-over-year, driven by more large-scale project completions and higher gross profit margins.

• Profit attributable to owners was RMB14.78 million, a 115.11% increase year-over-year, with basic and diluted EPS at RMB0.11.

• Gross profit rose 46.60% to RMB90.62 million, with gross margin improving by 3.99 percentage points to 25.40%.

• No interim dividend was declared for the period.

Financial highlights

• Cost of sales increased 17.29% to RMB266.13 million.

• Operating profit was RMB40.41 million, up from RMB23.17 million year-over-year.

• Net cash from operating activities was RMB78.75 million, with cash and cash equivalents at period end of RMB535.30 million.

• Working capital stood at RMB613.15 million, up from RMB586.62 million at year-end 2023.

• Gearing ratio was 10.11%, slightly down from 10.29% at year-end 2023.

Outlook and guidance

• Plans to invest further in R&D and expand the environmental protection equipment portfolio to support green and low-carbon development.

• Intends to pursue appropriate acquisitions in environmental protection, emission reduction, new materials, and new energy sectors.

• Aims to leverage established domestic and overseas customer bases for future growth.