Dirui Industrial Co (300396) Q4 2024 earnings summary

Executive summary

• Revenue for 2024 was ¥1,217.81 million, down 11.63% year-over-year; net profit attributable to shareholders was ¥141.92 million, down 48.50% year-over-year.

• Gross margin on instruments declined significantly; reagent sales growth was below target, impacting profitability.

• Domestic revenue was stable, but international revenue fell 27.87% due to policy and payment delays.

• The company maintained a high R&D investment ratio (10.6% of revenue) and launched several new products.

Financial highlights

• Operating cash flow was negative at -¥294.75 million, a sharp decline from ¥224.50 million last year, mainly due to lower collections and higher payments.

• Basic and diluted EPS were ¥0.52, down 48.51% year-over-year.

• Gross margin for reagents was 70.06%, while for instruments it was 24.26%.

• Inventory of reagents increased 101.92% due to lower-than-expected shipments in Q4.

Outlook and guidance

• 2025 focus areas: increasing reagent sales, improving receivables and cash flow management, and enhancing inventory control.

• Plans to leverage domestic substitution trends and expand international reagent sales, especially in key markets.

• Continued investment in product localization, cost reduction, and digital/AI-driven product upgrades.