Cloud Factory Technology Holdings (2512) H1 2024 earnings summary

Executive summary

• H1 2024 revenue rose 22.5% YoY to RMB369.7m, while gross profit fell 1.4% to RMB47.1m and profit for the period declined to RMB12.5m from RMB13.2m.

• IDC remained the largest revenue source at 94.3%; Edge Computing Services nearly tripled to RMB21.0m.

Financial highlights

• Revenue increased from RMB301.9m; cost of sales rose 27.0% to RMB322.6m, outpacing revenue growth.

• Gross profit was RMB47.1m, down 1.4% YoY; gross margin fell to 12.7% from 15.8%.

• Profit before tax was RMB14.9m versus RMB15.1m; profit for the period was RMB12.5m versus RMB13.2m, and basic and diluted EPS remained RMB0.03.

• Other income and gains rose to RMB4.3m from RMB0.7m, including a RMB3.0m local-government listing subsidy.

Outlook and guidance

• H2 priorities include strengthening basic cloud services, working with telecom operators on edge computing and expanding lower-tier infrastructure to support offline digital needs and client efficiency.

• Plans include developing AI, large-model training and computing-power use cases with carriers, universities and other partners; no quantified full-year guidance was stated.

• Digitalisation, intelligent computing and low-altitude economy applications are expected to support demand for edge computing and lower-tier networks.