Sharetronic Data Technology Co Ltd (300857) Q3 2024 earnings summary

Executive summary

• Revenue for the first nine months reached ¥5.39 billion, up 67.11% year-over-year, with net profit attributable to shareholders at ¥557 million, up 184.46%.

• Growth driven by increased demand in IoT smart terminals, data storage, and expanded server remanufacturing business.

• High-margin AIoT products and overseas smart security contributed to profitability; cloud services and new smart vending machine business expanded.

• Third quarter faced short-term challenges from weak downstream demand and strategic contraction of low-margin ODM business.

Financial highlights

• Q3 revenue: ¥1.82 billion, up 30.81% year-over-year; Q3 net profit: ¥199 million, up 140.63%.

• Gross margin and profitability improved due to product mix optimization and high-value product development.

• Operating cash flow for the period: ¥117 million, down 44.75% year-over-year due to increased inventory payments.

• Total assets at period end: ¥6.52 billion, up 27.61% from year start.

Outlook and guidance

• Management expects continued business improvement based on current order backlog and strategic plans.

• Short-term headwinds from market volatility and inventory adjustments are expected to be temporary.