Fibocom Wireless Inc (300638) Q2 2024 earnings summary

Executive summary

• H1 revenue rose 5.42% YoY to RMB 4.075bn; attributable net income increased 10.17% to RMB 333.5m, while operating cash flow reached RMB 337.5m.

• Results reflected continued IoT module demand, product expansion and higher R&D investment; wireless communication modules generated RMB 4.031bn, 98.9% of revenue.

• Strategic focus included edge AI, RedCap, robotics and connected-vehicle products; a post-period transaction subsequently divested the front-end automotive module business for $150m.

Financial highlights

• Revenue was RMB 4.075bn, up 5.42% YoY; operating profit was RMB 344.7m versus RMB 301.7m, and pretax profit was RMB 346.9m.

• Attributable net income rose 10.17% to RMB 333.5m; excluding non-recurring items, attributable net income was RMB 316.4m, up 11.45% YoY.

• Cost of revenue increased 6.04% to RMB 3.195bn; sales expenses fell 3.90% to RMB 108.4m, while R&D expense increased 10.78% to RMB 365.3m.

• H1 operating cash flow was RMB 337.5m, up 150.87% YoY; investing cash flow was negative RMB 164.9m and financing cash flow negative RMB 21.8m.

Outlook and guidance

• Priorities include expanding AI, edge-computing and robotics offerings, enriching the product portfolio and accelerating new-product market adoption across IoT verticals.

• RedCap modules FG131/FG132 had entered commercial sample delivery; FG332 and Wi-Fi 6/7 CPE solutions launched, alongside Linux edge-AI and embodied-robotics platforms.

• The smart-mower solution had completed introduction at multiple end customers, while Cat.1 bis module LE370-CN entered volume production.