Nsing Technologies (300077) Q4 2024 earnings summary

Executive summary

• Revenue for 2024 reached ¥1.17 billion, up 12.62% year-over-year, driven by strong growth in integrated circuits and key components sales volume (+79.37%) and moderate growth in anode materials (+34.91%).

• Net loss attributable to shareholders narrowed to ¥235 million, a 58.82% improvement year-over-year; excluding non-recurring items, net loss was ¥195.8 million, a 60.88% reduction.

• Gross margin for integrated circuits improved to 33.38% (+4.01pp), while anode materials margin rose to 7.83% (+5.77pp).

• Cash flow from operations remained negative at -¥121 million, similar to the prior year.

• No cash dividend or bonus shares proposed for 2024 due to accumulated losses.

Financial highlights

• Integrated circuits and key components revenue grew 28.25% to ¥596.5 million; anode materials revenue was stable at ¥571 million.

• Net assets attributable to shareholders fell 15.52% to ¥989 million; total assets decreased 2.36% to ¥3.71 billion.

• Basic and diluted EPS improved to -0.40 from -1.00 year-over-year.

• R&D investment was ¥275 million, 23.55% of revenue.

• Major one-off: ¥58.7 million in share-based payment expense due to termination of a subsidiary's equity incentive plan.

Outlook and guidance

• Semiconductor industry expected to grow 11.2% globally in 2025, with AI as a key driver; company plans to expand high-performance MCU and BMS product lines and accelerate international market expansion.

• Anode materials industry expected to recover as overcapacity eases and high-end demand rises; company will focus on cost reduction, efficiency, and high-quality product development.