China Resources Microelectronics (688396) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 was ¥4.76 billion, down 5.36% year-over-year due to industry downturn.

• Net profit attributable to shareholders was ¥280 million, a 63.96% decrease year-over-year.

• Q2 saw sequential improvement: revenue up 25% and net profit up 644% from Q1.

• R&D investment increased 4.89% year-over-year to ¥574 million, representing 12.05% of revenue.

• Industry inventory normalized and capacity utilization returned to full levels.

Financial highlights

• Operating cash flow was ¥655 million, down 16.41% year-over-year.

• Basic and diluted EPS were both ¥0.2121, down over 63% year-over-year.

• Gross margin and net margin declined due to lower industry demand and higher costs.

• Net assets attributable to shareholders rose 1.37% to ¥21.85 billion.

• Total assets at period end were ¥28.96 billion, down 0.87% from year-end 2023.

Outlook and guidance

• Management expects continued recovery in downstream demand and stable product pricing.

• Major projects are progressing as planned, with ongoing R&D investment to support future growth.

• Industry is expected to maintain a growth trajectory, especially in power semiconductors and new energy applications.