KINGSEMI (688037) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 was RMB 693.61 million, nearly flat year-over-year, while net profit attributable to shareholders dropped 43.88% to RMB 76.14 million due to increased R&D and personnel costs.

• R&D investment rose 52% year-over-year, reaching RMB 117 million, representing 16.87% of revenue.

• New orders signed in H1 2024 totaled RMB 1.219 billion, up about 30% year-over-year, with backlog exceeding RMB 2.6 billion at period end.

Financial highlights

• Operating income: RMB 693.61 million, down 0.29% year-over-year.

• Net profit attributable to shareholders: RMB 76.14 million, down 43.88% year-over-year.

• Net profit excluding non-recurring items: RMB 35.78 million, down 65.52% year-over-year.

• Operating cash flow turned positive to RMB 139.75 million, mainly due to improved collections and payment policy adjustments.

• Basic and diluted EPS: RMB 0.55, down 44.44% year-over-year.

• Net assets: RMB 2.46 billion, up 3.39% from year-end 2023.

• Total assets: RMB 4.62 billion, up 7.37% from year-end 2023.

Outlook and guidance

• Management expects continued growth in new orders, especially in advanced packaging and Chiplet-related equipment.

• Ongoing R&D investment and product innovation are expected to support long-term competitiveness.