Shenzhen Longsys Electronics (301308) Q3 2024 earnings summary

Executive summary

• Revenue for the first nine months of 2024 reached ¥13.27 billion, up 101.68% year-over-year, with net profit attributable to shareholders at ¥556.94 million, up 163.09% year-over-year.

• Q3 2024 saw a net loss of ¥36.84 million attributable to shareholders, mainly due to slower-than-expected downstream market recovery and lower gross margin.

• Overseas and high-end business segments, including Lexar and Brazil Zilia, maintained growth, and self-developed controller chips achieved production breakthroughs.

Financial highlights

• Q3 revenue: ¥4.23 billion, up 47.28% year-over-year; Q3 net loss: ¥36.84 million, an 87.16% improvement over last year.

• Nine-month net profit (excluding non-recurring items): ¥496.78 million, up 155.38% year-over-year.

• Total assets at period end: ¥16.93 billion, up 23.74% from last year-end.

• Operating cash flow for nine months: -¥1.11 billion, a 35.12% improvement year-over-year.

Outlook and guidance

• Downstream market recovery remains slower than expected, with inventory digestion and price acceptance still challenging.

• Continued investment in R&D, especially in self-developed controller chips, expected to drive future growth.