Inspur Digital Enterprise Technology (596) H2 2024 earnings summary

Executive summary

• Revenue decreased by 1.1% year-over-year to RMB8,200.8 million, with strong growth in cloud services offset by a decline in IoT solutions.

• Profit attributable to owners rose 90.8% year-over-year to RMB384.7 million, driven by improved segment profitability and higher gross margin.

• Final dividend proposed at HK$0.08 per share, up from HK$0.03 last year, subject to shareholder approval.

Financial highlights

• Gross profit increased 15.2% year-over-year to RMB2,208.4 million; gross margin rose to 26.9% from 23.1%.

• Basic EPS was RMB33.69 cents, up from RMB17.66 cents year-over-year.

• Profit before tax grew 72.5% to RMB480.4 million; income tax expense was RMB86.8 million.

• Current assets totaled RMB6,349.2 million; current liabilities RMB5,283.2 million; current ratio improved to 1.2x.

Outlook and guidance

• Plans to accelerate AI empowerment across all business lines in 2025, aiming to consolidate market leadership and expand overseas.

• Focus on delivering first-class products and solutions, supporting high-quality development for enterprise clients.