Huaqin (603296) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 reached RMB 36.61 billion, up 45.36% compared to the same quarter last year.

• Net profit attributable to shareholders for Q3 was RMB 758.56 million, an 8.04% increase year-over-year.

• Year-to-date revenue totaled RMB 76.01 billion, up 17.15% year-over-year.

• Year-to-date net profit attributable to shareholders was RMB 2.05 billion, up 3.31% year-over-year.

Financial highlights

• Gross margin for the first nine months was 9.8%, slightly down from 11.3% in the prior year.

• Basic EPS for Q3 was RMB 0.7510, up 1.23% year-over-year; year-to-date EPS was RMB 2.0243, down 5.74%.

• Operating cash flow for the first nine months was RMB 1.14 billion, down 32.90% year-over-year.

• Total assets at quarter-end were RMB 74.90 billion, up 45.42% from the end of last year.

• Shareholders’ equity reached RMB 21.62 billion, up 3.60% from year-end 2023.

Outlook and guidance

• High-performance computing business expanded rapidly, driving revenue growth.

• Product and business structure changes led to increased cash outflows for inventory and accounts receivable.