GalaxyCore (688728) Q3 2024 earnings summary

Executive summary

• Revenue for the first nine months of 2024 increased 40.35% year-over-year to RMB 4.55 billion, driven by strong growth in high-pixel CMOS image sensors and TDDI display driver chips.

• Net profit attributable to shareholders for the same period was RMB 8.11 million, down 83.69% year-over-year, mainly due to significant foreign exchange losses and increased R&D and interest expenses.

• Excluding foreign exchange losses, adjusted net profit for the first nine months was RMB 57.35 million, up RMB 46.34 million year-over-year.

Financial highlights

• Q3 2024 revenue reached RMB 1.76 billion, up 36.43% compared to the same quarter last year.

• Q3 net loss attributable to shareholders was RMB 69.38 million, a decrease of 195.62% year-over-year.

• Operating cash flow for the first nine months was RMB 114.49 million, down 73.16% year-over-year.

• Basic and diluted EPS for Q3 were both -0.03 RMB; for the nine-month period, both were 0.00 RMB.

• R&D investment for the first nine months was RMB 631.09 million, accounting for 13.86% of revenue.

Outlook and guidance

• High-pixel CMOS image sensors are expected to remain a strong growth driver as market acceptance increases.

• TDDI products now account for over 50% of display driver chip revenue, supporting future growth.

• The impact of foreign exchange losses has partially reversed as the USD/CNY rate has rebounded.