Harbin Electric (1133) H1 2024 earnings summary

Executive summary

• Operating revenue for the first half of 2024 reached RMB17,043.46 million, up 25.59% year-over-year, with net profit attributable to owners at RMB522.67 million, a 515.70% increase year-over-year.

• Earnings per share rose to RMB0.23 from RMB0.05, and total equity attributable to owners increased by RMB393.13 million since year start.

• Gross profit margin improved to 11.43%, up 0.71 percentage points year-over-year, driven by higher profitability in conventional hydro and thermal products.

• Market orders for major products remained strong, and business development progressed steadily.

Financial highlights

• Gross profit was RMB1,947.84 million, up 33.95% year-over-year; gross profit margin improved by 0.71 percentage points to 11.43%.

• Operating cost increased 24.59% year-over-year to RMB15,095.61 million.

• Total assets as of June 30, 2024, were RMB73,314.12 million, up 2.83% from the start of the year; total liabilities were RMB58,339.57 million, up 2.88%.

• Gearing ratio decreased to 79.57%, down 2.78 percentage points year-over-year.

• Net cash flow from operating activities was negative RMB1,430.15 million, mainly due to expanded production scale and related payments.

Outlook and guidance

• By end-2024, China's installed power generation capacity is expected to reach 3.3 billion kW, with non-fossil energy accounting for 57.5%.

• The company will focus on new energy industries, digital transformation, and improving quality, efficiency, and risk management in the second half of 2024.