Fuyao Glass: H1 Revenue, Profit Rise; Overseas Revenue Over 40%

• News
• 2024-06-23

On August 7th, Fuyao Glass released its semi-annual report for 2024, achieving a revenue of 18.34 billion yuan in the first half of the year, a year-on-year increase of 22.01%; net profit was 3.499 billion yuan, a year-on-year increase of 23.35%; and net profit after deducting non-recurring gains was 3.576 billion yuan, with a year-on-year increase of 28.05%.

Despite the domestic car market being caught up in a price war in the first half of the year, Fuyao Glass, as a leading supplier in the automotive glass industry, still maintained high growth in its performance, with both product volume and price increasing, and the siphon effect continuously strengthening.

In the first half of the year, Fuyao Glass's main business gross margin was 36.71%, an increase of 3.15 percentage points year-on-year. In terms of revenue by product category, Fuyao Glass's automotive glass revenue was 16.82 billion yuan in the first half of the year, a year-on-year increase of 25.82%, with a gross margin of 31.84%, an increase of 2.47 percentage points year-on-year; float glass achieved a revenue of 2.784 billion yuan, a year-on-year increase of 8.35%, with a segment gross margin of 35.55%, an increase of 8.34 percentage points year-on-year.

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Fuyao Glass stated that the current automotive market has entered a new stage of development characterized by diverse demands and optimized structure. The proportion of high added-value products such as intelligent panoramic skylight glass, adjustable light glass, head-up display glass, and ultra-isolation glass is continuously increasing. Fuyao's leading position in the industry's technology brings structural opportunities for the company's automotive glass sales.

In the first half of this year, Fuyao Glass's net cash flow from operating activities was 3.325 billion yuan, a year-on-year increase of 6.41%, with a net cash ratio as high as 95%. However, the capital debt ratio increased compared to the end of 2023, reaching 14.32%.

In terms of "going global," Fuyao Glass's overseas revenue accounts for more than 40%. In the first half of this year, Fuyao America achieved a net profit of 387 million yuan, a year-on-year increase of over 100%. On the evening of July 28th, Fuyao Glass announced that its wholly-owned subsidiary, Fuyao America, located in Moraine, Ohio, was inspected by U.S. government agencies around 10 a.m. local time on July 26th. However, Fuyao America is not the target of the U.S. investigation; it is merely cooperating with the U.S. government agencies in their ongoing investigation of a third-party labor service company, and this has not affected the production work of Fuyao America.

In addition, Fuyao Glass also registered Fuyao (Eastern Europe) Limited Liability Company in Hungary on May 30th of this year, with a registered capital of 8,000 euros, and Fuyao Glass's wholly-owned subsidiary, Fuyao (Hong Kong) Limited, holds 100% of the shares of Fuyao (Eastern Europe) Limited Liability Company.

Looking forward to the development in the second half of the year, Fuyao Glass believes that the global economic situation remains severe, and economic growth still faces multiple risks and challenges. To this end, Fuyao Glass will continue to operate prudently and cautiously, including strictly controlling the quality of products and every aspect of new product development, making good use of the "quality veto system"; while expanding the scale of the company's business, continuously optimizing the production process, establishing an agile management and flexible production mechanism; and increasing investment and speed in research and development around new materials, new processes, new technologies, and cross-domain cooperation, promoting product upgrades and replacements.

In the latest research report, it is pointed out that the global automotive glass industry is concentrated, and Fuyao Glass is in the third round of capital expenditure cycle. With the subsequent release of production capacity from the U.S. expansion project, Fuqing export base, and Fuyao Hefei base, Fuyao Glass's global share is expected to further increase. In terms of per-vehicle ASP, with the continuous development of automotive intelligence, the functionality of automotive glass is also continuously upgrading. The penetration rate of high added-value products such as HUD windshields, panoramic skylights (integrated with coating, dimming functions), and double-layer side windows is continuously increasing, driving the growth of the automotive glass industry and the company's per-vehicle matching value.