Shandong HiSpeed New (1250.HK) Q4 2024 Earnings Report

Shandong HiSpeed New Energy Group Limited posted QQ4 2024 results that underscore a bifurcated picture: solid operating discipline and cash generation against a backdrop of sharply lower revenue and a negative quarterly net income driven by significant non-operating items. Revenue for Q4 2024 was HKD 908.6 million, down 58.6% year-on-year, while gross profit reached HKD 347.3 million, delivering a gross margin of 38.23%. Operating income stood at HKD 299.4 million (operating margin 32.95%), and EBITDA was HKD 714.94 million (EBITDA margin 78.69%). However, the quarter showed a net loss of HKD 7.37 million after a substantial negative swing from total other income/expenses net of HKD -223.70 million, which overshadowed earnings before tax of HKD 75.70 million and an after-tax charge of HKD 44.26 million. From a cash-flow perspective, Shandong HiSpeed generated robust operating cash flow of HKD 816.62 million in Q4 2024, with capital expenditures of HKD -427.87 million and free cash flow of HKD 388.75 million. The company ends the year with a strong liquidity position: cash and cash equivalents of HKD 3.65 billion and cash and short-term investments of HKD 4.20 billion, against total debt of HKD 26.56 billion and net debt of HKD 22.92 billion. The balance sheet shows substantial assets including PPE net of HKD 23.88 billion and goodwill/intangibles (~HKD 4.35 billion combined), supporting a total asset base of HKD 48.40 billion and equity of HKD 13.23 billion. Notwithstanding the near-term earnings volatility, management’s cash-flow profile implies capacity to deleverage over time if the underlying project pipeline progresses and non-operating charges normalize. The group’s leverage remains elevated (debt-to-capitalization ~0.668; debt-to-equity ~2.01) with a muted earnings per share (EPS -HKD 0.0033) and negative net income for the quarter, which will be important considerations for investors evaluating medium-term profitability and capital allocation strategy.