Zhejiang Tengy Environmental Technology (1527) H2 2024 earnings summary

Executive summary

• Revenue rose 20.1% year-over-year to RMB744.9 million, driven by large-scale project contracts and strong demand for environmental protection equipment.

• Net profit attributable to owners surged 98.2% to RMB84.6 million, reflecting higher gross margins and operational efficiency.

• Gross profit increased 54.9% to RMB218.2 million, with gross margin improving to 29.3% from 22.7% last year.

• No final dividend was recommended for the year.

Financial highlights

• Operating income reached RMB126.7 million, up from RMB81.8 million year-over-year.

• Earnings per share doubled to RMB0.63 from RMB0.32.

• Cash and cash equivalents increased to RMB660.1 million, up RMB207.0 million from last year.

• Net current assets rose 15.9% to RMB679.7 million.

• Outstanding bank loans stood at RMB85 million at year-end.

Outlook and guidance

• The company plans to invest further in R&D for energy-efficient environmental protection devices and expand its product range.

• Market expansion and international cooperation are priorities, with a focus on green technologies and Belt and Road Initiative opportunities.

• The industry is expected to benefit from stricter global and domestic emissions regulations, supporting demand for advanced dust collectors.