Harbin Electric (1133) H2 2024 earnings summary

Executive summary

• Achieved record highs in total profits, operating revenue, and market orders in 2024, driven by strong demand for new-type power equipment and successful expansion in domestic and overseas markets.

• Net profit attributable to owners rose to RMB1,685.57 million, up RMB1,110.81 million year-over-year, with EPS at RMB0.754.

• Operating revenue increased 32.79% year-over-year to RMB38,297.85 million, with significant growth in thermal, hydro, and nuclear power equipment segments.

Financial highlights

• Gross profit reached RMB4,797.08 million, up RMB1,793.77 million year-over-year; gross margin improved to 12.53%.

• Operating costs rose 29.66% to RMB33,500.76 million, reflecting higher output in key equipment categories.

• Total assets stood at RMB71,946.16 million (+0.91%), with current assets at RMB60,208.80 million (83.69% of total).

• Total liabilities decreased to RMB55,756.29 million, with a gearing ratio of 77.50%.

• Net cash flow from operating activities was RMB-241.97 million, mainly due to increased production inputs and raw material reserves.

Outlook and guidance

• Expects continued rapid growth in China's power generation capacity in 2025, with new energy sources comprising a larger share.

• Plans to invest RMB1.469 billion in 2025 for key construction and technological transformation projects.

• Focus on high-quality development, technological innovation, and green transformation to support national modernization goals.