Jereh Group(SZ:002353) Mei Ri Jing Ji Xin Wen·2025-08-06 15:45Core Insights - Jerry Holdings (SZ002353) reported a strong performance in the first half of 2025, with revenue and net profit both increasing, particularly driven by a 38.38% year-on-year growth in overseas revenue [2][4][5] - Despite the positive financial results, the company faces challenges in its transition to renewable energy, particularly with losses in its lithium battery projects and uncertainties in international expansion [2][6][8] Financial Performance - The company achieved a revenue of 6.901 billion yuan in the first half of 2025, a 39.21% increase from 4.957 billion yuan in the same period of 2024 [3] - High-end equipment manufacturing generated 4.224 billion yuan, accounting for 61.22% of total revenue, with a year-on-year growth of 22.42% [3] - The oil and gas engineering and technical services segment saw a significant revenue increase of 88.14%, contributing 2.069 billion yuan, driven by rising demand in both domestic and international markets [3][4] Business Segments - The natural gas-related business reported a revenue growth of 112.69%, with a 5.61% increase in gross margin, indicating strong market expansion [4] - Overseas operations generated 3.295 billion yuan, reflecting a 38.38% increase, with new orders up by 24.16%, showcasing robust growth in international markets [4][8] Renewable Energy Transition - The renewable energy and recycling segment achieved a revenue of 328 million yuan, marking a 65.74% year-on-year increase, highlighting its potential as a growth driver [6] - The company is actively pursuing a dual business strategy focusing on both oil and gas and renewable energy, having entered the lithium battery recycling sector in 2023 [6] Challenges in Renewable Energy - The lithium battery project has been a significant source of losses, with cumulative investments reaching 1.512 billion yuan and a reported loss of 248 million yuan as of the reporting period [7] - The company plans to invest approximately 2.5 billion yuan in the lithium-ion battery negative material integration project, but has faced delays due to market conditions [7] International Market Dynamics - The company has successfully expanded its overseas market presence, reducing reliance on the domestic market, but faces challenges from geopolitical tensions and varying regulations across different regions [8] - The complexity of international operations increases management costs and operational risks, which could impact future growth [8]