Cloud Factory Technology Holdings (2512) H2 2024 earnings summary

Executive summary

• FY2024 revenue rose 1.7% YoY to RMB707.6m, while profit for the year fell 13.0% to RMB12.4m and basic EPS declined to RMB0.03 from RMB0.04.

• Growth in Edge Computing Services offset softer IDC revenue; higher administrative expenses and finance costs weighed on earnings.

Financial highlights

• Gross profit increased 2.3% to RMB89.6m; gross margin rose to 12.7% from 12.6%.

• Profit before tax decreased 5.7% to RMB13.8m; income tax expense increased to RMB1.5m from RMB0.4m.

• Other income and gains reached RMB9.4m versus RMB1.3m, mainly from government grants and higher interest income.

• Finance costs more than doubled to RMB8.5m from RMB4.0m, primarily due to higher bank borrowings.

Outlook and guidance

• In 2025, priorities include expanding AIoT applications, developing the EdgeAIStation computing platform, and growing CDN, AIoT and computility businesses.

• Plans include domestic node coverage in over 1,000 cities and overseas expansion starting in Southeast Asia, followed by the Middle East and Europe and the Americas.

• Computility capacity may be expanded through acquisitions or cooperation; no specific financial guidance was stated.