KINGSEMI (688037) Q4 2024 earnings summary

Executive summary

• Revenue reached ¥1.75 billion in 2024, up 2.13% year-over-year; net profit attributable to shareholders was ¥203 million, down 19.08% year-over-year; adjusted net profit (excluding non-recurring items) was ¥73 million, down 60.83% year-over-year, mainly due to increased R&D and personnel costs.

• R&D expenses rose 49.93% to ¥297 million, representing 16.92% of revenue; company expanded product lines and strengthened market position in core semiconductor equipment segments.

• Total assets grew 30.11% to ¥5.60 billion; net assets attributable to shareholders increased 13.05% to ¥2.69 billion.

• Cash flow from operating activities turned positive to ¥442 million, driven by improved sales collections and government subsidies.

Financial highlights

• Gross margin for semiconductor equipment was 36.85%, down 0.90 percentage points year-over-year.

• Basic and diluted EPS were ¥1.01, down 44.51% year-over-year; adjusted EPS (excluding non-recurring items) was ¥0.37, down 72.79%.

• R&D investment as a percentage of revenue increased by 5.40 percentage points to 16.92%.

• Government subsidies recognized as non-recurring income totaled ¥137 million, accounting for 60.94% of pre-tax profit.

Outlook and guidance

• The company plans to further strengthen its core photoresist coating and developing equipment business, accelerate the localization of high-end semiconductor equipment, and expand into new growth areas such as chemical cleaning and advanced packaging.

• Strategic focus includes increasing R&D investment, optimizing supply chain localization, and deepening customer relationships, especially with leading domestic and international semiconductor manufacturers.

• The company expects continued growth in the semiconductor equipment market, driven by global wafer fab expansion and domestic policy support.