Empyrean Technology (301269) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached ¥299.75 million, up 27.69% year-over-year, but net profit attributable to shareholders fell 76.40% to ¥20.67 million.

• Year-to-date revenue was ¥743.54 million, up 16.25% year-over-year, with net profit down 65.84% to ¥58.55 million.

• Significant increase in R&D and sales expenses, and a notable rise in share-based payment expenses impacted profitability.

Financial highlights

• Gross margin declined as operating costs and expenses rose sharply, with sales expenses up 33.67% and R&D expenses up 20.2% year-over-year.

• Operating cash flow for the period was negative at -¥41.44 million, a 124.78% decrease year-over-year.

• Basic and diluted EPS for Q3 were ¥0.0381, down 76.38% year-over-year.

• Total assets at quarter-end were ¥5.28 billion, down 4.55% from the previous year-end.

Outlook and guidance

• The company launched several new EDA products in custom design and wafer manufacturing, aiming to strengthen its market position.