On August 23, Times Electric released its 2024 semi-annual report, with the company achieving operating revenue of 10.284 billion yuan in the first half of the year, a year-on-year increase of 19.99%; net income of 1.507 billion yuan, a year-on-year increase of 30.56%.

Times Electric stated that the revenue growth in the first half of 2024 was driven by the increase in investment in railroads, the recovery of passenger flow, and the growth in the acceptance and delivery volume of rail transportation products, as well as the increase brought by the emerging equipment industries such as power semiconductor devices. The year-on-year growth of net income was mainly attributed to the year-on-year growth in revenue scale.

Times Electric is mainly engaged in the research and development, design, manufacturing, and sales of rail transportation equipment products, including rail transportation electrical equipment mainly based on traction inverter systems, rail engineering machinery, and communication signal systems.

As the main business of the company, the revenue growth rate of rail transportation equipment has increased significantly. In the first half of this year, its rail transportation equipment business achieved revenue of 4.947 billion yuan, a year-on-year increase of 27.33%; in the same period in 2023, the revenue of this business was 3.885 billion yuan, a year-on-year increase of 6.93%.

In terms of enhancing the core competitiveness of rail transportation equipment and other aspects, Times Electric stated that they will closely track the domestic and international technological development trends in the industry, grasp the direction of market development, and strengthen the linkage between scientific research and development and market operation.

The emerging equipment industry is the revenue "increment" mentioned by Times Electric in the semi-annual report. This is the company's layout outside of rail transportation, mainly including power semiconductor devices, industrial conversion products, new energy vehicle electric drive systems, sensor components, and offshore equipment.

In the first half of this year, Times Electric's emerging equipment business achieved revenue of 4.094 billion yuan, a year-on-year increase of 9.21%.

Power semiconductors are one of the important sources of revenue for the emerging equipment business of the company, with first-half revenue of 1.747 billion yuan, a year-on-year growth of 26.63%, and a slower growth rate; during the same period last year, the revenue from power semiconductors was 1.38 billion yuan, an increase of 78.75%.

Regarding the reasons for the slowing growth, times electric did not specifically explain in the semi-annual report, only stating that the existing production lines are fully operational, the Yixing Phase 3 project is steadily progressing, and is expected to start production in the second half of 2024, with continuous capacity improvement for medium and low-voltage devices; the IGBT 7.5 chip technology products have achieved batch delivery.

As the second growth pole, Times Electric has been continuously increasing its investment in the emerging equipment business in recent years.

On the evening of August 23, times electric announced that, based on the development strategic needs of the company and CRRC Times Electric Semiconductor, a subsidiary of Times Electric, plans to invest approximately 0.946 billion yuan in the construction of the medium and low-voltage power component production capacity (Yixing) project by Yixing CRRC Times Electric Semiconductor Co., Ltd. The implementation of this project will add the annual production capacity for 5 million medium and low-voltage power components, increasing the sales revenue of medium and low-voltage power components.

Regarding the growth trend of the rail transit business and the emerging equipment business in 2024, on April 26 this year, the company stated during an institutional investor survey that for the rail transit business, China State Railway Administration did not provide a very clear guidance on new orders in 2024. There is currently no indication of new tendering for new orders, and the guidance given by the company for the entire rail transit equipment business sector in 2024 is still a slight increase.

"As for the emerging equipment business sector, in 2024 it will outperform the industry growth rate, with power semiconductors having some growth in the power grid business, outperforming the industry growth rate in new energy generation, electric vehicles, sensors, industrial frequency conversion, and offshore equipment, all showing better growth compared to 2023." Times Electric added.

The Science and Technology Innovation Board Daily noted that there have been frequent personnel changes at Times Electric recently. Since March of this year, the company has repeatedly released information on changes in senior management personnel, including the general manager, directors, supervisors, senior management personnel, and core technical personnel.

Among them, on May 14, 2024, Shang Jing resigned as the company's general manager due to work transfer, and Xu Shaolong was appointed as the company's general manager on June 27. In addition, in the first half of the year, the company involved as many as 10 departing directors, supervisors, core technical personnel, and others.

In addition, on the evening of August 23, Times Electric announced that some of the raised investment projects have been delayed.

Times Electric stated that based on the current construction status and investment progress of the company's raised investment projects, the scheduled available time for the electric vehicle electric drive system research and development application project in the IPO first-phase raised investment project 'New Industry Advanced Technology Research and Development Application Project' has been adjusted from 2024 to 2026.

Regarding the reasons for project delay, Times Electric explained that due to the complexity of the electric vehicle electric drive system research and development application project and the continuous adjustment and improvement of the company's research and development project implementation plan, the research and development cycle of the aforementioned project has been extended.