GRG Banking Equipment (002152) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached ¥4.71 billion, up 29.45% year-over-year; net profit attributable to shareholders was ¥498 million, up 5.20% year-over-year.

• Financial technology and urban intelligence segments both achieved strong double-digit growth, with fintech revenue up 29.30% and urban intelligence up 29.71% year-over-year.

• Gross margin declined to 32.29%, down 7.38 percentage points year-over-year, mainly due to increased costs and changes in sales structure.

• Company continued to expand in AI, digital government, and smart city sectors, and completed the acquisition of a controlling stake in GRG Five Boats.

• No interim dividend, bonus shares, or capital increase from reserves planned for the half-year.

Financial highlights

• Operating income: ¥4.71 billion, up 29.45% year-over-year.

• Net profit attributable to shareholders: ¥498 million, up 5.20% year-over-year.

• Net profit excluding non-recurring items: ¥440 million, up 6.73% year-over-year.

• Basic and diluted EPS: ¥0.20, up 5.26% year-over-year.

• Net cash flow from operating activities: -¥1.02 billion, a further decrease from -¥860 million in the prior year.

Outlook and guidance

• Company will continue to focus on digital transformation, AI, and smart city development, aiming for high-quality growth in fintech and urban intelligence.

• Plans to deepen R&D in AI, data, and scenario-based applications, and further expand the digital economy ecosystem.

• Will maintain a dual strategy of industry and capital, with ongoing investment and M&A in strategic sectors.