NSFOCUS (300369) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached ¥800.27 million, up 12.39% year-over-year; net loss attributable to shareholders was ¥254.64 million, narrowing by 38.64% year-over-year.

• Gross margin improved across most segments, with cost controls and organizational optimization contributing to reduced losses.

• The company maintained strong R&D investment, focusing on AI security, data security, and cloud security, and launched several innovative products and solutions.

• No dividend distribution, bonus shares, or capital increase from reserves planned for the interim period.

Financial highlights

• Operating income: ¥800.27 million, up 12.39% year-over-year.

• Net loss attributable to shareholders: ¥254.64 million, improved by 38.64% year-over-year.

• Operating cash flow: ¥42.35 million, a significant turnaround from a negative ¥251.40 million in H1 2023.

• Total assets: ¥4.23 billion, up 1.83% from year-end 2023.

• Net assets attributable to shareholders: ¥2.50 billion, down 8.83% from year-end 2023.

• Basic and diluted EPS: -¥0.32, improved from -¥0.52 in H1 2023.

Outlook and guidance

• The company will continue to focus on key industries and customers, driving product R&D and market expansion through customer demand and technology.

• Ongoing investment in AI, data security, and cloud security, with new product launches expected in H2 2024.

• Management expects continued pressure on downstream customer budgets and project cycles but aims for stable revenue growth and further loss reduction.