iMotion Automotive Technology (1274) Q2 2024 earnings summary

Executive summary

• H1 2024 revenue rose 17.11% YoY to RMB636.16m; autonomous-driving solutions and product deliveries exceeded 96,000 units, up 92.9%.

• Loss attributable to owners narrowed 1.14% to RMB98.61m; no interim dividend was recommended.

Financial highlights

• Gross profit increased 9.29% to RMB44.85m, while gross margin declined to 7.05% from 7.55%.

• Operating loss was RMB100.06m; loss before tax was RMB98.60m and net loss RMB98.63m, versus RMB99.75m in H1 2023.

• Basic and diluted loss per share improved to RMB0.44 from RMB0.49.

• Net cash used in operating activities increased to RMB406.91m from RMB80.88m; cash and cash equivalents were RMB212.39m at period-end.

• Cost of sales and services rose 17.75% to RMB591.31m.

Outlook and guidance

• Most of 18 OEM nomination projects are expected to enter production in 2024 or 2025.

• BEV + Transformer perception on iDC500 was expected to enter serial production in H2 2024; the iDEA cockpit integration product is expected to launch in 2025.

• Plans include developing iDC510 for urban NoA, investing in algorithms, computing power and data, expanding OEM relationships, and increasing overseas production capacity.

• RMB154.53m of unsatisfied performance obligations was expected to be recognized within 12 months; remaining obligations were expected within one to two years.