Shanghai Longcheer Technology (603341) Q3 2024 earnings summary

Executive summary

• Q3 revenue rose 92.97% YoY to RMB 12.64bn; net profit attributable to shareholders fell 46.66% to RMB 92.2m, pressured by higher material costs, low-margin shipments, and investment in new businesses.

• 9M revenue more than doubled to RMB 34.92bn, while attributable net profit declined 15.03% to RMB 430.9m.

Financial highlights

• Q3 adjusted net profit, excluding non-recurring items, was RMB 59.2m, down 65.08% YoY; 9M adjusted net profit was RMB 331.6m, down 23.45%.

• 9M consolidated net profit was RMB 425.4m vs RMB 505.9m YoY; operating profit was RMB 453.5m vs RMB 550.2m.

• Total assets reached RMB 26.29bn at Sept. 30, up 32.51% from year-end 2023; parent shareholders’ equity was RMB 5.53bn, up 44.54%.

Outlook and guidance

• Q4 gross margin was expected to begin gradually improving, supported by customer negotiations, supply-chain management, design optimization, and manufacturing efficiency measures.