Shenzhen Kinwong Electronic (603228) Q4 2024 earnings summary

Executive summary

• Revenue reached RMB 12.66 billion in 2024, up 17.68% year-over-year, with net profit attributable to shareholders at RMB 1.17 billion, up 24.86%.

• Operating cash flow was RMB 2.29 billion, up 8.23% year-over-year.

• The company expanded in AI, automotive electronics, and high-end PCB markets, leveraging R&D and digital transformation.

• Major investments included new production bases in Thailand and capacity expansion in Jiangxi and Zhuhai.

Financial highlights

• Gross margin for main business was 18.78%, down 0.85 percentage points year-over-year.

• Net profit attributable to shareholders: RMB 1.17 billion, up 24.86% year-over-year.

• Basic and diluted EPS: RMB 1.34, up 20.72% year-over-year.

• Net assets attributable to shareholders: RMB 11.31 billion, up 28.90% from prior year-end.

• Total assets: RMB 19.24 billion, up 11.68% from prior year-end.

Outlook and guidance

• The company will continue to focus on AI, automotive, and high-end PCB markets, aiming for further product and market expansion.

• Plans include ongoing R&D investment, digital transformation, and capacity expansion in key regions.

• Risks identified include macroeconomic volatility, raw material price fluctuations, exchange rate risk, and intensified industry competition.