Voicecomm International (2495) H2 2024 earnings summary

Executive summary

• FY2024 revenue rose 15.8% YoY to RMB941.4m; gross profit increased 56.9% to RMB510.4m, with margin up 14.2 percentage points to 54.2%.

• IFRS loss widened to RMB481.5m, mainly due to a non-cash RMB632.8m change in carrying amount of redeemable capital contributions; adjusted net profit rose 28.6% to RMB151.4m.

Financial highlights

• Revenue from enterprise-level solutions grew 16.4% to RMB932.5m; other revenue declined 25.3% to RMB8.9m.

• Operating profit increased 29.8% to RMB168.2m; cost of revenue fell 11.6% to RMB431.0m as high-margin projects grew and hardware deliveries declined.

• R&D expense rose 35.4% to RMB133.7m; trade receivables impairment increased 119.0% to RMB121.3m.

• Net finance costs rose 55.9% to RMB18.2m, reflecting higher bank borrowings and interest expense.

Outlook and guidance

• Plans target energy management and holistic healthcare as new growth areas, alongside four established application scenarios.

• February 2025 registration of a Malaysian subsidiary supports ASEAN expansion; Middle East markets, including the UAE, Saudi Arabia and Oman, are also targeted.

• FY2025 priorities include AI solution development, ecosystem investments and M&A, and commercializing charging and intelligent elderly-care platforms.