MemeStrategy (2440) H2 2024 earnings summary

Executive summary

• Revenue fell to RMB98.6m from RMB440.6m as IoT clients delayed projects and equipment demand weakened; net loss was RMB77.5m versus net profit of RMB25.5m.

• Adjusted net loss, excluding equity-settled share-option and award expense, was RMB64.0m versus adjusted net profit of RMB36.0m.

Financial highlights

• Gross loss was RMB0.5m versus gross profit of RMB83.8m; loss before tax was RMB70.4m versus profit before tax of RMB34.5m.

• Impairment losses on financial assets rose to RMB29.4m from RMB10.0m, mainly reflecting slower collection of overdue receivables.

• Operating expenses included R&D costs of RMB13.5m, up from RMB9.6m; administrative expenses were RMB37.6m versus RMB38.1m.

Outlook and guidance

• 2025 priorities include diversifying private 5G customers across manufacturing, transport, environmental protection and energy, and upgrading the Universal IoT Platform for AI, big data and industrial IoT.

• Plans emphasize customer diversification, stronger receivable collection and credit controls, risk management, and cost control amid economic uncertainty and rising competition.