Zhejiang Crystal-Optech (002273) H1 2024 earnings summary

Executive summary

• H1 revenue reached ¥2.655bn, up 43.21% YoY; attributable net income rose 140.48% to ¥426.66m, setting a first-half record.

• Growth was led by optical components and thin-film optical panels, with expanding automotive and reflective-material businesses and continued development of AR/VR optical solutions.

• Strategy emphasized portfolio and customer diversification, cost and risk control, and building domestic and overseas delivery capacity.

Financial highlights

• Revenue was ¥2.655bn (+43.21% YoY); operating profit was ¥485.66m versus ¥201.52m in H1 2023.

• Net income attributable to shareholders was ¥426.66m (+140.48%); adjusted net income excluding non-recurring items was ¥391.02m (+253.43%).

• Operating cash flow was ¥701.57m (+147.20%); investing cash flow was -¥451.55m and financing cash flow was -¥528.46m.

• Optical optoelectronics contributed ¥2.389bn, or 90.01% of revenue, up 42.01% YoY; reflective materials generated ¥183.81m, up 35.47%.

• Non-recurring items totaled ¥35.64m, including ¥40.93m of government grants; reported net income therefore exceeded adjusted net income.

Outlook and guidance

• Management plans to expand AR-HUD solutions and overseas automotive business, develop smart lighting, camera-monitoring and window-projection products, and pursue vehicle-camera modules.

• AR optical development is focused on reflective waveguides and resolving scale, cost and mass-production challenges; overseas automotive projects could support future automotive segment margins.

• IDC forecast VR/AR/MR device shipments to grow 46.4% in 2024 and a 37.2% CAGR from 2023–2027.