Sichuan New Energy Power Company (000155) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached ¥1.80 billion, up 0.90% year-over-year, with net profit attributable to shareholders rising 38.76% to ¥633.54 million and basic EPS at ¥0.41, a 32.26% increase year-over-year.

• Wind and photovoltaic power generation capacity expanded, with total installed capacity at 1.2977 GW and H1 power generation up 26.37% year-over-year; waste-to-energy and environmental services also grew.

• Lithium business faced significant price declines, with lithium product sales and gross profit dropping sharply year-over-year.

• Major capital operations included the completion of equity acquisitions in wind and environmental subsidiaries and a non-public share issuance raising ¥2.25 billion in June 2024.

Financial highlights

• Operating cash flow increased 26.54% year-over-year to ¥759.14 million; total assets rose 16.38% to ¥25.34 billion, and net assets attributable to shareholders grew 41.91% to ¥10.48 billion.

• Gross margin for wind/solar power was 79.31%, waste-to-energy 48.84%, and lithium business -1.42% due to price drops.

• Non-recurring gains totaled ¥43.13 million, mainly from government subsidies and fair value changes.

Outlook and guidance

• The company continues to focus on expanding wind, solar, and lithium resources, with over 1.5 GW of new wind/solar projects approved and under construction.

• Ongoing lithium mine and salt projects are expected to enhance vertical integration and future profitability.