Hekang New Energy (300048) released its results for the first quarter of 2024 in the evening, with revenue of 699 million yuan from January to March 2024, a year-on-year increase of 111%, a net profit attributable to the parent company of 11.03 million yuan, a year-on-year increase of 1566%, and a net cash flow of 42.96 million yuan from operating activities, which turned from negative to positive compared with the same period last year, and the financial indicators have improved significantly.
In the second half of 2023, Hekang New Energy will adjust its strategic layout, focusing on the three main businesses of household energy storage and photovoltaic inverter self-development and self-production, photovoltaic EPC, and self-development and self-production of high and low voltage inverters, and vigorously invest resources to build vertically integrated competitive advantages, and effectively improve the quality of operation.
According to the company's announcement, the residential energy storage business adopts the mode of independent research and development and independent production, and has built vertically integrated R&D and production capacity for inverters and battery packs, fully covering the core links of the industrial chain. Combined with the needs of overseas customers, we have created two series of products, household storage single-phase all-in-one machine and household storage three-phase all-in-one machine, and is researching and developing photovoltaic inverters and module-level power electronic products for different regional markets around the world, and in the first quarter of 2024, the self-developed and self-produced products of the household energy storage business will begin to be sold and shipped in batches. The company's photovoltaic EPC business includes residential distributed photovoltaic EPC, industrial and commercial distributed photovoltaic EPC, and will gradually expand the centralized photovoltaic EPC business in the future, and in the first quarter of 2024, the distributed photovoltaic EPC business will grow rapidly. As of the end of the first quarter, the company's main business has been expanding smoothly in domestic and foreign markets, with sufficient orders and significantly enhanced competitive advantages.
At the same time, Hekang New Energy continued to cultivate the core capabilities of high-quality development, invested heavily in various resources, and carried out short-, medium- and long-term product and technology research and development, with R&D expenses increasing by 135% year-on-year in the first quarter of 2024. The company started the construction of a new manufacturing base in Anqing to improve the production capacity of the company's main business and lay a solid foundation for the company's business development in the next stage.
Focusing on 2024, Hekang New Energy is rapidly seizing the opportunities of the era of energy structure transformation, gradually consolidating differentiated competitive advantages, and continuously expanding the industrial territory of Midea Group's "green strategy".