Neusoft (600718) Q3 2024 earnings summary

Executive summary

• Revenue for the first nine months reached RMB 6.89 billion, up 10.03% year-over-year, with net profit attributable to shareholders at RMB 152 million, up 13.06% year-over-year.

• Net profit excluding non-recurring items surged 85.09% year-over-year for the first nine months, and 172.26% for Q3 alone, reflecting strong operational improvement.

• Strategic transformation towards intelligent solutions and data value enhancement drove growth in new contracts and order backlog.

Financial highlights

• Q3 revenue was RMB 2.59 billion, up 9.22% compared to the same quarter last year.

• Net profit attributable to shareholders for Q3 was RMB 54.08 million, up 36.23% year-over-year.

• Basic and diluted EPS for Q3 were both RMB 0.05, up over 38% year-over-year.

• Operating cash flow for the first nine months was negative RMB 227.5 million, an improvement from negative RMB 394.3 million year-over-year.

Outlook and guidance

• The company continues to advance its strategic transformation, focusing on intelligent solutions and data-driven value, with ongoing growth in new contracts and order backlog.