Chaozhou Three-Circle (300408) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached ¥3.43 billion, up 30.36% year-over-year, driven by improved demand in consumer electronics and optical communications, and higher market recognition of MLCC products.

• Net profit attributable to shareholders was ¥1.03 billion, up 40.26% year-over-year; net profit excluding non-recurring items rose 60.46%.

• Gross margin improved to 41.90%, and basic EPS increased to ¥0.54, up 42.11% year-over-year.

• R&D investment increased by 13.03% year-over-year, supporting new product development and innovation.

• The company maintained its position as a global leader in ceramic components for optical communications and electronic resistors.

Financial highlights

• Operating income was ¥1.19 billion, up 44.44% year-over-year.

• Cash flow from operating activities was ¥772 million, down 11.88% year-over-year.

• Total assets at period-end were ¥22.77 billion, up 4.33% from year-end 2023.

• Net assets attributable to shareholders reached ¥18.69 billion, up 2.51% from year-end 2023.

• Non-recurring profit and loss items contributed ¥112 million, mainly from government subsidies and fair value changes.

Outlook and guidance

• The company will continue to focus on R&D and innovation, expanding its product matrix in MLCC and new energy sectors.

• Ongoing construction and commissioning of R&D centers in Chengdu and Suzhou to strengthen regional innovation capabilities.

• The high-capacity MLCC expansion project is delayed to May 2025 due to downstream demand fluctuations.