Nsing Technologies (300077) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached RMB 514.82 million, up 10.64% year-over-year, driven by strong growth in integrated circuit sales despite price pressure; net loss attributable to shareholders narrowed by 41.31% to RMB -133.94 million.

• Gross margin for integrated circuits improved slightly, while negative pressure persisted in the anode materials segment due to industry overcapacity and price declines, though sales volume increased and gross margin improved.

• Cost control measures reduced total expenses, and cash flow from operations improved significantly, though still negative.

Financial highlights

• Operating income: RMB 514.82 million, up 10.64% year-over-year.

• Net loss attributable to shareholders: RMB -133.94 million, a 41.31% reduction in loss year-over-year.

• Gross margin for integrated circuits: 31.58%, up 0.8 percentage points; for anode materials: 3.09%, up 6.54 percentage points.

• Cash flow from operations: RMB -96.19 million, a 62.99% improvement year-over-year.

• Basic and diluted EPS: RMB -0.23, improved from RMB -0.41 year-over-year.

Outlook and guidance

• The company will continue to focus on “general + security” product strategy, accelerate high-performance product launches, and expand in both domestic and international markets.

• In the anode materials segment, efforts will focus on quality assurance, cost reduction, and expanding high-end product lines, with ongoing investment in R&D and new product development.