Fortior Technology (Shenzhen) Co Ltd (688279) Q3 2024 earnings summary

Executive summary

• Q3 revenue rose 46.63% YoY to RMB150.5m; attributable net income increased 51.39% to RMB61.8m. 9M revenue grew 53.72% to RMB432.8m and net income rose 48.23% to RMB183.8m.

• 9M operating cash flow increased 82.05% YoY to RMB120.1m, supported by higher sales and collections.

Financial highlights

• Q3 adjusted attributable net income, excluding non-recurring items, was RMB51.6m, up 72.36% YoY; 9M adjusted net income was RMB155.6m, up 86.34%.

• 9M operating profit was RMB184.8m versus RMB122.1m in 9M 2023; net income was RMB183.8m versus RMB124.0m.

• 9M sales receipts were RMB493.3m versus RMB321.2m in the prior-year period.

Key financial ratios and metrics

• Basic and diluted EPS were RMB0.67 in Q3, up 52.27% YoY; 9M EPS was RMB1.99, up 48.51%.

• Weighted average ROE was 2.50% for Q3 and 7.50% for 9M, increasing 0.74 and 2.11 percentage points, respectively.

• 9M R&D spending was RMB65.1m, equal to 15.04% of revenue, down 3.43 percentage points; Q3 spending was RMB24.9m, or 16.53% of revenue, down 2.59 points.

• Total assets were RMB2.56bn at September 30, 2024, up 2.48% from year-end 2023; parent shareholders’ equity was RMB2.50bn, up 4.76%.