Huaqin (603296) Q4 2024 earnings summary

Executive summary

• Achieved revenue of RMB 109.88 billion in 2024, up 28.76% year-over-year, driven by high-performance computing and smart hardware growth.

• Net profit attributable to shareholders reached RMB 2.93 billion, up 8.10% year-over-year; adjusted net profit (excluding non-recurring items) was RMB 2.35 billion, up 8.43%.

• Total assets increased to RMB 76.30 billion, up 48.12% from the previous year; net assets attributable to shareholders rose to RMB 22.54 billion, up 8.04%.

• Proposed cash dividend of RMB 9 per 10 shares, with a payout ratio of 31.15% of net profit.

Financial highlights

• Revenue: RMB 109.88 billion (2024), up 28.76% year-over-year.

• Net profit attributable to shareholders: RMB 2.93 billion, up 8.10% year-over-year.

• Adjusted net profit: RMB 2.35 billion, up 8.43% year-over-year.

• Operating cash flow: RMB 1.38 billion, down 64.26% year-over-year due to increased cash outflows for goods purchases.

• Gross margin declined in most segments except automotive and industrial products.

Outlook and guidance

• Smart terminal and high-performance computing markets expected to maintain stable growth, with AI and server segments showing strong expansion potential.

• Continued investment in R&D and global supply chain expansion, especially in Vietnam and India.

• Focus on AI, automotive electronics, and software as new growth drivers.