NSFOCUS (300369) H2 2024 earnings summary

Executive summary

• Revenue reached ¥2,358 million in 2024, up 40.29% year-over-year; net loss attributable to shareholders was ¥364.81 million, a 62.66% reduction in loss compared to 2023.

• Operating cash flow turned positive at ¥135.91 million, up 167.20% year-over-year.

• Gross margin improved, and the company maintained its leading position in the cybersecurity sector, with continued investment in R&D and product innovation.

• No cash dividend, bonus shares, or capital increase from reserves for 2024 due to negative net profit.

Financial highlights

• Revenue: ¥2,358 million (+40.29% YoY); net loss: ¥364.81 million (loss reduced by 62.66% YoY).

• Gross margin: 53.76% (up from 46.15% in 2023).

• Operating cash flow: ¥135.91 million (vs. -¥202.25 million in 2023).

• R&D investment: ¥632.88 million, 26.84% of revenue.

• Basic and diluted EPS: -0.46.

• Net assets: ¥2,547 million; total assets: ¥4,614 million.

Outlook and guidance

• 2025 is positioned as a key year for high-quality growth, with a focus on stable operations, cash flow, and profitability.

• Strategic focus on core customers and industries, increased R&D, and product standardization.

• Continued investment in AI, data security, and cloud security, with plans to expand international markets.