Shenzhen Forms Syntron Information (300468)) Q4 2024 earnings summary

Executive summary

• Achieved revenue of ¥740.38 million in 2024, up 1.36% year-over-year; net profit rose 42.18% to ¥67.36 million.

• Gross margin improved to 33.09% from 32.24% as the company shifted focus to higher-margin and overseas business.

• Overseas revenue accounted for 60.31% of total, with continued expansion in Hong Kong and Southeast Asia.

• Significant investment in R&D (¥70.10 million, 9.47% of revenue), focusing on Web3, digital currency, and AI solutions.

• Board approved a cash dividend of ¥1 per 10 shares, totaling ¥53.06 million.

Financial highlights

• Revenue: ¥740.38 million (+1.36% YoY); Net profit: ¥67.36 million (+42.18% YoY).

• Operating cash flow: ¥167.94 million (+32.12% YoY); cash and equivalents at year-end: ¥1.2 billion.

• Gross margin: 33.09% (+0.85pp YoY); R&D expense: ¥70.10 million (+11.73% YoY).

• EPS: ¥0.13 (basic and diluted, +44.44% YoY); ROE: 4.15% (+1.18pp YoY).

Outlook and guidance

• Plans to deepen overseas market penetration, especially in Hong Kong and Southeast Asia.

• Will continue to invest in compliant Web3 financial infrastructure and generative AI for financial applications.

• Focus on expanding high-margin business and strengthening end-to-end digital solutions for financial clients.