Chongqing Machinery & Electric (2722) H2 2024 earnings summary

Executive summary

• Revenue rose 10.7% year-over-year to RMB8,919.2 million, with gross profit up 5.0% to RMB1,555.3 million and profit attributable to shareholders up 42.0% to RMB431.3 million.

• Earnings per share increased to RMB0.12, and the Board proposed a final dividend of RMB0.035 per share, subject to approval.

• Growth was driven by clean energy equipment and high-end intelligent equipment, with strong market expansion and R&D investment.

Financial highlights

• Operating profit increased 37.3% year-over-year to RMB516.4 million, mainly due to higher investment income from associates and joint ventures.

• Gross profit margin was 17.4%, down 1.0 percentage point year-over-year.

• Net cash inflow from operating activities was RMB718.3 million, up from RMB145.8 million in 2023.

• Total assets reached RMB17,616.7 million, with a current ratio of 1.52:1 and gearing ratio of 20.4%.

• Investment income rose to RMB498.6 million, up RMB198.5 million year-over-year.

Outlook and guidance

• The company expects continued growth in 2025, supported by national policies promoting clean energy and high-end manufacturing.

• Strategic focus areas include innovation in wind, hydrogen, and pumped storage, digital transformation, and supply chain optimization.

• Management anticipates stable or improved performance across core segments, with ongoing risk management and talent development.