Suzhou Novosense Microelectronics (688052) Q4 2024 earnings summary

Executive summary

• FY24 revenue rose 49.53% YoY to RMB1.960bn, while attributable net loss widened to RMB402.88m from RMB305.33m; automotive demand, product growth and the Megawin acquisition supported sales.

• Quarterly revenue rose from RMB362.48m in Q1 to RMB594.29m in Q4; Q4 attributable net income was RMB4.83m after losses in the first three quarters.

Financial highlights

• Reported operating revenue was RMB1.960bn, up 49.53% YoY; revenue excluding unrelated or non-commercially substantive items was RMB1.947bn, up 49.31%.

• Attributable net loss was RMB402.88m versus RMB305.33m; excluding nonrecurring items, net loss was RMB456.78m versus RMB393.12m.

• Operating costs rose 63.87% to RMB1.319bn; selling expense increased 60.88% to RMB188.94m, administration expense 15.33% to RMB281.26m, and R&D expense 3.52% to RMB539.99m.

• Gross margin was 32.33%, down 6.17 percentage points YoY; lower pricing amid competition and a changed product mix pressured margins.

• Operating cash flow turned positive at RMB95.05m from an outflow of RMB139.41m, supported by stronger collections and slower inventory-related cash outflows.

Outlook and guidance

• 2025 priorities include sustained revenue growth and gradual profitability improvement through automotive and broad-energy expansion, new-product commercialization and cost optimization.

• Focus R&D on 150W Class D audio, PMIC and headlamp products; develop 48V-system opportunities and accelerate customer qualification of MCU, SoC and functional-safety driver products.

• General signal-chain products had over 20 mass-production part numbers by 2024 Q3; broader shipments are expected to build from 2025.

• Automotive motor-drive and integrated motor-drive SoC projects secured customer design wins, with scaled production expected progressively during 2025.