Shanghai Longcheer Technology (603341) Q4 2024 earnings summary

Executive summary

• FY2024 revenue rose 70.62% to RMB46.38bn as all major product lines expanded; attributable net income fell 17.21% to RMB501.1m and adjusted net income fell 26.92% to RMB384.1m.

• Growth came with lower product margins, higher R&D spending and weaker operating cash flow; strategic priorities shifted to a “1+2+X” portfolio anchored by smartphones, personal computing and automotive electronics.

Financial highlights

• FY2024 revenue was RMB46.38bn, up 70.62% YoY; operating profit was RMB512.6m versus RMB661.6m, and consolidated net income was RMB493.3m versus RMB602.7m.

• Attributable net income was RMB501.1m, down 17.21%; adjusted attributable net income was RMB384.1m, down 26.92%.

• Q4 revenue was RMB11.46bn; attributable net income RMB70.3m, adjusted net income RMB52.6m and operating cash flow RMB106.9m.

• Operating cash flow fell 29.99% to RMB1.03bn; investing cash flow was negative RMB2.07bn, while financing cash flow rose to RMB2.11bn, primarily reflecting IPO proceeds.

• FY2024 costs of revenue rose 77.95% to RMB43.56bn; R&D expense increased 23.25% to RMB2.08bn, or 4.48% of revenue.

Outlook and guidance

• 2025 priorities include global expansion, deepening key-customer relationships, improving quality and operational efficiency, and integrating AI into smart-terminal products; no numerical earnings guidance was stated.

• Smartphones and tablets: scale 5G deliveries, pursue high-end products and overseas markets, increase mid-to-high-end mix, and apply AI in tablets and education/industrial niches.

• AI PC plans target ARM/X86 capability and volume delivery to multiple brands; automotive electronics plans include batch deliveries, overseas customer expansion and vehicle-grade production lines.

• AIoT plans emphasize higher-end wearables and audio, while AI/AR/MR glasses development focuses on leading global customers and advanced engineering capabilities.