Lingyi iTech (002600) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached ¥19.12 billion, up 25.1% year-over-year; net profit attributable to shareholders was ¥692 million, down 44.5% year-over-year.

• Gross margin decreased to 27.3% from 28.2% year-over-year; basic EPS was ¥0.10, down from ¥0.18.

• Operating cash flow remained positive at ¥1.77 billion, but net profit declined due to higher costs and asset impairment losses.

Financial highlights

• Operating income rose to ¥19.12 billion from ¥15.29 billion year-over-year.

• Net profit attributable to shareholders was ¥692 million, down from ¥1.25 billion year-over-year.

• Gross profit was ¥5.22 billion, up from ¥4.13 billion year-over-year.

• Total assets at period-end were ¥39.13 billion, up from ¥37.19 billion at the start of the year.

• Net cash from operating activities was ¥1.77 billion, down from ¥3.66 billion year-over-year.

Outlook and guidance

• Management expects continued revenue growth in H2 2024, driven by consumer electronics and automotive segments.

• No major uncertainties identified regarding the company’s ability to continue as a going concern.