Suzhou Novosense Microelectronics (688052) Q3 2024 earnings summary

Executive summary

• Q3 revenue rose 86.59% YoY to RMB 517.1 million; 9M revenue increased 36.49% to RMB 1.366 billion, while the 9M net loss widened to RMB 407.7 million.

• 9M operating cash flow returned to positive RMB 32.9 million, compared with an outflow of RMB 278.8 million in the prior-year period.

Financial highlights

• 9M net loss attributable to shareholders was RMB 407.7 million, versus RMB 250.9 million a year earlier; net loss excluding RMB 217.9 million in share-based compensation was RMB 189.8 million.

• 9M adjusted net loss excluding share-based compensation and non-recurring items was RMB 223.4 million; reported loss excluding non-recurring items was RMB 441.3 million.

• 9M operating costs and expenses totaled RMB 1.744 billion, up from RMB 1.325 billion; operating loss was RMB 409.1 million, versus RMB 289.1 million.

• 9M R&D expense was RMB 495.7 million, down 0.69% YoY; R&D was 36.29% of revenue, a decrease of 13.58 percentage points.

Key financial ratios and metrics

• Basic and diluted EPS were both -RMB 1.00 for Q3 and -RMB 2.86 for 9M, versus -RMB 1.77 for 9M 2023.

• Weighted average return on equity was -2.32% for Q3 and -6.48% for 9M.

• At Sept. 30, total assets were RMB 6.939 billion, down 3.04% from year-end 2023; shareholders’ equity attributable to the parent was RMB 6.086 billion, down 1.94%.