China Resources Microelectronics (688396) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached RMB 2.71 billion, up 8.44% year-over-year, but net profit attributable to shareholders fell 21.31% to RMB 219 million.

• For the first nine months, revenue was RMB 7.47 billion, down 0.77% year-over-year, with net profit dropping 52.72% to RMB 499 million.

• The company increased R&D investment, with Q3 R&D spending at RMB 315 million, representing 11.62% of revenue.

Financial highlights

• Q3 2024 basic and diluted EPS were RMB 0.1654, down over 21% year-over-year; nine-month EPS was RMB 0.3776, down over 52%.

• Operating cash flow for the first nine months was RMB 1.11 billion, down 12.48% year-over-year.

• Gross margin and net margin declined due to industry cycle adjustments and increased R&D expenses.

Outlook and guidance

• Management attributes profit decline to industry cycle adjustments and ongoing major project investments.

• The company is actively increasing R&D to support future growth despite current margin pressures.