Shaanxi Lighte Optoelectronics Material (688150) Q2 2024 earnings summary

Executive summary

• H1 2024 revenue rose 73.65% YoY to RMB 245.52m; net income attributable to shareholders increased 111.43% to RMB 92.48m, driven by higher OLED terminal-material sales and expense growth below revenue growth.

• Stronger customer collections lifted operating cash flow to RMB 107.14m from RMB 12.30m YoY; the interim report is unaudited.

Financial highlights

• Revenue was RMB 245.52m, up 73.65% YoY; operating costs were RMB 82.99m, up 67.11% YoY.

• Net income was RMB 92.48m, up 111.43% YoY; adjusted for non-recurring items, net income was RMB 82.48m, up 151.23%.

• Operating profit reached RMB 105.65m versus RMB 45.50m YoY; income tax expense was RMB 12.97m versus RMB 3.82m.

• R&D expense increased 21.15% YoY to RMB 29.99m; selling expense rose 3.54% and administrative expense rose 2.08%.

• Investing cash flow was negative RMB 30.19m, versus positive RMB 14.19m; financing cash flow was positive RMB 22.09m, versus negative RMB 42.91m YoY.

Outlook and guidance

• Red Host passed customer production testing and was expected to move to batch supply during 2024; Red Host, Green Prime and blue materials continued customer validation.

• OLED terminal-material capacity reached 12 tonnes/year; the project is being commissioned in stages, with further capacity released in line with market demand.

• The OLED terminal-material R&D and industrialization project was extended to December 2024 after weaker-than-expected demand and a measured pace of investment; equipment installation and acceptance continued in H1.