GoerTek (002241) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached ¥29.26 billion, up 1.70% year-over-year, with net profit attributable to shareholders at ¥1.12 billion, surging 138.16% year-over-year.

• Net profit for the first nine months was ¥2.35 billion, up 162.88% year-over-year, despite a 5.82% decline in revenue to ¥69.65 billion.

• Strong improvement in profitability driven by higher investment and fair value gains, government subsidies, and cost controls.

Financial highlights

• Q3 basic EPS was ¥0.33, up 135.71% year-over-year; nine-month EPS was ¥0.69, up 165.38%.

• Operating cash flow for Q3 was ¥2.66 billion, down 21.79% year-over-year.

• Total assets at quarter-end were ¥81.38 billion, up 10.35% from the start of the year.

• Owner's equity attributable to shareholders rose 4.96% to ¥32.34 billion.

Key financial ratios and metrics

• Weighted average ROE for the nine months was 7.45%, up from 4.50% at the end of last year.

• Gross margin and operating margin improved due to reduced financial expenses and increased investment/fair value gains.