GRG Banking Equipment (002152) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 reached ¥2.41 billion, up 14.41% year-over-year; YTD revenue was ¥7.12 billion, up 23.93% year-over-year.

• Net profit attributable to shareholders for Q3 was ¥174.63 million, down 37.37% year-over-year; YTD net profit was ¥672.92 million, down 10.58% year-over-year.

• Non-recurring gains contributed ¥62.17 million in Q3 and ¥120.28 million YTD, mainly from asset disposals, government subsidies, and investment returns.

Financial highlights

• Gross margin declined as cost of sales increased 36.53% year-over-year, outpacing revenue growth.

• Basic and diluted EPS for Q3 were ¥0.07, down 36.36% year-over-year; YTD EPS was ¥0.27, down 10%.

• Operating cash flow was negative ¥1.04 billion YTD, a 31.51% larger outflow year-over-year, mainly due to higher payments for goods and services.

• Total assets at Q3-end were ¥27.54 billion, up 5.3% from year-end 2023.

Outlook and guidance

• Acquisition of Guangzhou Guangdian Wuzhou is expected to strengthen capabilities in AI and general computing infrastructure, enhancing competitiveness in the server market and influence in the information innovation industry.