Shanghai Longcheer Technology (603341) Q2 2024 earnings summary

Executive summary

• H1 2024 revenue rose 106.31% YoY to ¥22.28bn as smartphone, tablet and AIoT shipments expanded; attributable net income increased 1.35% to ¥338.6m.

• Adjusted for non-recurring items, attributable net income was ¥272.4m, up 3.30% YoY; operating cash flow grew 58.57% to ¥805.4m.

• AI PC and automotive electronics are strategic growth areas: AI PC projects were progressing toward mass production in 2024, and automotive electronics project awards were secured.

Financial highlights

• Revenue was ¥22.28bn, up 106.31% YoY; operating costs rose 120.00% to ¥20.83bn, reflecting higher sales volume and associated costs.

• Net income was ¥335.1m; attributable net income was ¥338.6m, versus ¥334.1m in H1 2023. Operating profit was ¥368.4m versus ¥372.8m.

• Operating cash flow was ¥805.4m, investing cash flow was -¥1.53bn, and financing cash flow was ¥1.38bn, including IPO proceeds.

• Total assets reached ¥24.98bn and parent-attributable net assets ¥5.41bn at June 30; increases from year-end were 25.93% and 41.44%, respectively.

Outlook and guidance

• AI PC development was progressing; an automated production line was operating end-to-end, with mass-production shipments expected in 2024. R&D and customer expansion continued.

• Automotive electronics focus includes intelligent cockpit products; some chassis-domain products remained under development. New project awards from Xiaomi and JAC were received in H1.

• Continued global manufacturing investment and expansion of domestic capacity were planned, with domestic operational experience intended for replication in Vietnam and India.