Zhejiang Crystal-Optech (002273) H2 2024 earnings summary

Executive summary

• FY24 revenue reached RMB6.278bn, up 23.67% YoY; attributable net income rose 71.57% to RMB1.030bn, both record highs.

• Growth reflected recovery in consumer electronics and strong contributions from thin-film optical panels, automotive HUD, semiconductor optics and reflective materials.

• Strategy centers on consumer electronics, automotive optics and AR/VR, with global expansion, technology-led product upgrades and one-stop optical solutions.

Financial highlights

• Revenue was RMB6.278bn, up 23.67% YoY; operating profit was RMB1.178bn versus RMB664.6m in 2023.

• Net income was RMB1.044bn; attributable net income was RMB1.030bn, up 71.57%, while adjusted attributable net income excluding non-recurring items was RMB955.4m, up 82.84%.

• Operating cash flow increased 45.32% to RMB1.787bn; investing cash flow was negative RMB944.6m and financing cash flow negative RMB715.3m.

• Revenue mix: optical components RMB2.884bn, thin-film optical panels RMB2.472bn, reflective materials RMB393.6m, automotive electronics RMB300.3m and semiconductor optics RMB129.4m.

Outlook and guidance

• FY25 revenue target is growth of 0%–30%; management cautioned this is an operating goal, not a forecast, and depends on macro conditions, markets and execution.

• Priorities include expanding overseas operations, increasing R&D, improving high-end and customized products, and growing 3D vision, AR/VR, automotive optics and semiconductor optics.

• HUD shipments are targeted to reach a new annual high; AR/VR plans prioritize reflective waveguide mass production and deeper cooperation with North American technology leaders.