Neusoft (600718) Q4 2024 earnings summary

Executive summary

• 2024 marked a year of major transformation, with a focus on intelligent solutions, AI, and data value creation, driving high-quality growth across core sectors such as healthcare, smart automotive connectivity, and smart cities.

• Revenue grew 9.64% year-over-year, with operating cash flow reaching a record high and main business net profit up 22.01% compared to the previous year.

• The company maintained leadership in medical IT, social security, and smart automotive, with international business and AI-driven solutions expanding rapidly.

Financial highlights

• 2024 revenue: ¥11.56 billion, up 9.64% year-over-year; main business net profit: ¥435 million, up 22.01%.

• Net profit attributable to shareholders: ¥63 million, down 14.7% year-over-year due to non-recurring items; adjusted net profit (excluding non-recurring items) improved by ¥111 million year-over-year.

• Operating cash flow: ¥855 million, up 7.16% year-over-year, a new historical high.

• Basic EPS: ¥0.05; weighted average ROE: 0.66%.

• Proposed cash dividend: ¥1.50 per 10 shares (pre-tax), totaling ¥178 million.

Outlook and guidance

• 2025 revenue target: ¥12.72 billion, up 10% year-over-year; cost and expense growth expected to align with revenue.

• Continued focus on intelligent solutions, AI, and data value creation, with further international expansion and ecosystem development.