AInnovation Technology Group (2121) H2 2024 earnings summary

Executive summary

• FY24 strategy shifted from rapid revenue growth to lower-risk, cash-focused growth; revenue declined, while gross margin, adjusted net loss and operating cash flow improved.

• H2 performance was stronger than H1, with manufacturing-focused business reaching a record 80.3% of revenue; total customers rose 31.2% to 521.

Financial highlights

• FY24 revenue fell 30.2% YoY to RMB1,221.8m; gross profit declined 28.1% to RMB423.1m.

• Net loss widened 6.8% to RMB608.9m and operating loss was RMB630.6m; adjusted net loss narrowed to RMB117.3m from RMB154.2m.

• Cost of sales fell 31.3% to RMB798.7m; selling, G&A and R&D expenses declined 10.8%, 35.0% and 21.1%, respectively.

• Net cash used in operating activities improved 80.1% to RMB35.8m from RMB180.3m; cash and cash equivalents were RMB1,204.9m at year-end.

Outlook and guidance

• 2025 strategy is “one model, one agent and two wings”: industrial LLMs as the engine for industrial robots and software, with industrial AI agents tailored to manufacturing.

• Priorities include continued R&D, product refinement, customer-side deployment and commercialization across industrial software, digital solutions, industrial logistics, intelligent equipment and sustainability.

• Plans include expanding robot applications from industrial automation into commercial automation and advancing LLM-enabled design, software integration and manufacturing use cases.

• Management expressed confidence in China’s new industrialization and AI-enabled manufacturing demand, expecting a strategic shift from resilience toward renewed growth momentum.