SICC (688234) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 was RMB 368.99 million, down 4.60% compared to the same quarter last year; YTD revenue reached RMB 1.28 billion, up 55.34% year-over-year.

• Net profit attributable to shareholders in Q3 was RMB 41.14 million, up 982.08% year-over-year; YTD net profit was RMB 143.03 million.

• Gross margin and profitability improved, mainly due to increased sales of large-size conductive products.

Financial highlights

• Basic and diluted EPS for Q3 were RMB 0.10, up 900% year-over-year; YTD EPS was RMB 0.33.

• Operating cash flow for the first nine months was negative RMB 52.20 million, mainly due to higher staff costs and export-related expenses.

• R&D investment for Q3 was RMB 38.83 million, up 16.19% year-over-year; YTD R&D was RMB 95.03 million, down 22.88% year-over-year.

• Total assets at quarter-end were RMB 7.14 billion, up 3.31% from the end of last year.

• Shareholders’ equity reached RMB 5.28 billion, up 1.03% from year-end 2023.

Outlook and guidance

• Revenue growth is expected to continue, driven by sustained demand for large-size conductive products.