On August 24th, Kechuang Board Daily (Reporter Wu Xuguang) reported that Times Electric released its 2024 semi-annual report on the evening of August 23rd, with the company achieving 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 growth in revenue in the first half of 2024 was influenced by the growth in railway investment and passenger flow recovery, leading to a year-on-year increase in the acceptance and delivery volume of rail transit products. At the same time, the emerging equipment industry, such as power semiconductor devices, brought incremental growth. The year-on-year growth in net income was mainly due to the year-on-year increase in revenue.

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

The revenue growth of the rail transit equipment business, as the company's main business, has shown a significant improvement. In the first half of this year, the revenue of its rail transit equipment business reached 4.947 billion yuan, a year-on-year increase of 27.33%; while in the same period of 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 transit equipment and other aspects, Times Electric stated that it 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 referred to as the 'increment' of revenue mentioned in the semi-annual report of Times Electric. This is the company's layout beyond rail transit and mainly includes power semiconductor devices, industrial converters, new energy vehicle electric drive systems, sensor devices, offshore equipment, and other fields.

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%.

Among them, power semiconductors are one of the important sources of revenue for the company's emerging aviation equipment, with revenue of 1.747 billion yuan in the first half of the year, a year-on-year growth of 26.63%, with a slower growth rate; in the same period last year, the revenue of power semiconductors was 1.38 billion yuan, an increase of 78.75%.

As for the reason for the slowdown in growth, Times Electric did not provide specific explanations in the semi-annual report, only stating that the production lines are running at full capacity and the Yixing Phase 3 project is steadily progressing, with production expected to start in the second half of 2024. The production capacity of medium and low-voltage devices continues to increase; the IGBT 7.5 generation chip technology products have achieved bulk delivery, and so on.

As the second growth pole, the emerging aviation equipment business of Times Electric has been continuously expanding 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 Semiconductor, its subsidiary, Yixing CRRC Times Semiconductor Co., Ltd., plans to invest approximately 0.946 billion yuan to build the medium and low-voltage power component capacity construction (Yixing) project. The implementation of this project will add a production capacity of 5 million medium and low-voltage power components per year and increase the sales revenue of medium and low-voltage power components.

Regarding the growth trend of the rail transportation business and the emerging aviation equipment business in 2024, on April 26 this year, the company stated in its response to institutional investors' inquiries that for the rail transportation business, China Railway Corporation has not provided very clear guidance on new orders in 2024. At present, no new order bids have been seen, and the company's guidance for the entire rail transportation equipment business sector in 2024 is still slightly positive.

"For the emerging aviation equipment business sector, we expect to outperform the industry growth rate in 2024. Power semiconductors will experience some growth in the power grid business, outperforming the industry growth rate in new energy generation and electric vehicles. The sensor business will also outperform the industry growth rate. Industrial converters and offshore equipment are expected to have good growth compared to 2023," added Times Electric.

"The Star Daily" has noticed that Times Electric has recently experienced frequent personnel changes. Since March of this year, the company has repeatedly released information about changes in senior management personnel, including general managers, 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 job transfers, and Xu Shaolong was appointed as the company's general manager on June 27. In addition, in the first half of the year, there were 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 fundraising projects were delayed.

Times Electric stated that based on the actual construction status and investment progress of the company's fundraising projects, the scheduled availability time for the new energy vehicle electric drive system research and application project in the IPO first batch fundraising project "new industry advanced technology research and application project" has been adjusted from 2024 to 2026.

Regarding the reason for the project delay, Times Electric stated that due to the complexity of the technology involved in the research and development of the new energy vehicle electric drive system research and 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 above project has been extended.