Ingdan Inc (400) H1 2024 earnings summary

Executive summary

• H1 2024 revenue rose 11.9% YoY to RMB4,321.4m; profit for the period was RMB169.1m, while profit attributable to equity shareholders increased 21.8% to RMB112.7m.

• Higher sales to large customers pressured gross margin, while increased U.S. dollar interest costs weighed on profit before tax.

Financial highlights

• Revenue increased 11.9% YoY to RMB4,321.4m; cost of sales rose 14.3% to RMB3,863.8m.

• Gross profit fell 5.1% to RMB457.6m and operating profit declined 7.9% to RMB228.2m; profit before tax was RMB178.6m versus RMB196.6m.

• Net profit rose 0.6% to RMB169.1m; profit attributable to equity shareholders increased 21.8% to RMB112.7m.

• Basic EPS was RMB0.082 versus RMB0.068; diluted EPS was RMB0.082 versus RMB0.067.

• Other income fell to RMB8.2m from RMB26.9m, including no FX gain versus RMB14.1m and lower government grants of RMB0.8m versus RMB5.7m.

Outlook and guidance

• Strategy focuses on AI opportunities across the chip supply chain, developing chip-application solutions and building a “chip-device-cloud” ecosystem to address rising computing demand.

• Plans include expanding smart battery-cloud, two-wheeler battery, iPaaS and AIoT services, while developing proprietary products and value-added services.

• Further plans target electronics-manufacturing value-chain services, data monetization, customer retention and spending, plus strategic partnerships, investments and acquisitions.