Hithink RoyalFlush Information Network (300033) Q3 2024 earnings summary

Executive summary

• Revenue for the first nine months was ¥2.33 billion, down 1.59% year-over-year; net profit attributable to shareholders was ¥651 million, down 15.53% year-over-year.

• The company faced capital market volatility and increased investment in AI large models, impacting profitability.

• R&D investment in multi-modal AI models increased, with 37 new software copyrights and 44 new invention patents (including 4 US patents) obtained in the period.

Financial highlights

• Q3 revenue was ¥945 million, up 4.81% compared to the same quarter last year; Q3 net profit attributable to shareholders was ¥288 million, down 7.47% year-over-year.

• Basic and diluted EPS for Q3 were ¥0.54, down 6.90% year-over-year; for the nine-month period, EPS was ¥1.21, down 15.38% year-over-year.

• Operating cash flow for the nine-month period was ¥655 million, down 12.61% year-over-year.

• Total assets at period end were ¥9.28 billion, down 5.76% from the previous year-end.

Outlook and guidance

• The company continues to focus on AI large model R&D and product integration to enhance competitiveness and service quality.